Are These Cheap Penny Stocks Worth The Risk Right Now? Most traders understand that penny stocks are shares of companies trading for less than $5. But that leaves a lot of âwiggle roomâ when it comes to putting your watch list together. Where some traders look for specific trending sectors, others solely focus on price. One of the more popular groupings of penny stocks is those that fall below the $1 threshold. Even a small shift in price by 10 cents can mean a move of 10% or more. The lower the price, the higher the intrinsic volatility as a result. So before you dive right in and start blindly throwing darts at your âstocks under $1â dartboard, strategize. When it comes to trading, nothing needs to be set in stone. I mean that even if you wanted to buy penny stocks under $1, itâs ok to look for trending industries. For example, weâve got a lot of action in energy stocks right now. We also see plenty of momentum behind other industries like biotech and, of course, marijuana penny stocks. Penny Stocks Under $1 & Risks Involved