Due to their low cost and high upside potential, penny stocks are increasingly attracting the attention of people looking to get into stock trading. But with high rewards comes high risk, especially in the volatile world of penny stocks, which are considered speculative at best. And, if you've seen "The Wolf of Wallstreet" starring Leonardo DiCaprio, you know how rife with fraud and scams penny stock trading can be.
It can take years of training, studying, and trial and error to come close to reaching top levels of success. You can read about how to invest in penny stocks in the hundreds of books published on the subject. But nothing beats learning to trade in the actual arena from highly experienced and successful traders.
The best penny stock trading courses offer fledgling traders the opportunity to immerse themselves in both the content and the action as the quickest way to move up the learning curve. With our review of the best penny stock trading courses in six categories, we help you eliminate some risk and boost your chances of success.
Best Penny Stock Trading Courses in 2021
Investopedia offers its own stock trading class as part of the Investopedia Academy, but to maintain objectivity, we opted to exclude it from this roundup. If you are interested in this course, please visit the Investopedia Academy.
Best Overall : Tim Sykes Trading Program
With its vast video library, mentoring from successful Sykes proteges, active chat room, real-time daily alerts, and reasonable pricing, all offered by a world-class trader, the Tim Sykes Trading Program makes our list as the best overall penny stock trading course.
Founded by one of the most successful traders in the world
Long track record of developing successful traders
Reasonably priced membership
Vast video library
Tim Sykes' brash and flamboyant self-promotion may be a turnoff
Sykes only sometimes frequents the chat rooms
At just 39 years old, Tim Sykes is considered the elder among a young breed of traders who have emerged in the last 20 years. Sykes has been training thousands of young traders through the Tim Sykes Trading Program, offering thousands of videos, weekly video sessions, chat rooms, and mentoring, all reinforced through his heralded daily alerts. That's why we chose the Tim Sykes Trading Program as the best overall penny stock trading course.
The Tim Sykes Trading Program consists of three plans. The first two are open to all comers and the third by application only.
The first plan—Tim's Alerts—costs $75 per month and comprises daily access to the chatrooms, his stock watchlist, and real-time alerts. Not much training goes on here, so it's mostly suited for experienced traders who want access to Tim's insights and trading strategies. You can save money with an annual subscription of $697.
For $150 per month, or $108 per month through a yearly subscription, you have access to everything from Tim's Alerts plus a vast library of more than 5,000 videos, covering more than 410 hours of content in 50 different categories. You'll also have access to daily or weekly video lessons. While Tim is only sometimes present in the chat rooms, his top students, including his first student to earn $1 million in profits, Michael Goode, are full-time moderators.
A third plan, Trade Like Tim, is only open by application. Essentially, you get all the components of the first two plans along with the opportunity to watch Tim trade. It's learning by osmosis, or you can simply copy his trading strategies.
While Tim Sykes is not accredited with the Better Business Bureau (BBB), his organization carries an A rating. He only has 33 reviews on Trustpilot (three out of five stars), but his program is highly respected among trading review sites.
Best Comprehensive Course Offering : Warrior Trading
Whether you are just beginning to trade penny stocks or an experienced trader looking to up your game, Warrior Trading has just what you need, making it our pick as the penny stock trading course with the best comprehensive offering.
Extensive courses and resources for all levels of experience
Includes access to real-time trading simulator
Large and active chat rooms
Offers free trading courses
A little pricier compared to others on this list
No matter your experience level, Warrior Trading has an extensive, all-inclusive course to fit your needs. That's why Warrior Trading is our pick as the penny stock trading course with the best comprehensive offering.
In 2012, Ross Cameron, a highly successful trader, started Warrior Trading, which has since earned a reputation as one of the world's top trading schools. It has an active following of more than 500,000 subscribers and over 5,000 premium-paying members. Its extensive educational resources include highly structured online courses and webinars, trading simulators, group mentoring, and one of the most active chat rooms in the industry.
Beginners can move up the learning curve at their own pace with the Warrior Starter program for $997. The course includes 15 chapters of content, one month of access to the live trading chat rooms, and the use of a real-time trading simulator. They continue their monthly access with a membership starting at $197 a month.
The Warrior Pro package is a 90-day course that includes the core resources of the Starter package and adds more advanced courses. For $1,497 per month for three months and $197 a month after that, Warrior Pro students also have access to group mentoring.
In Warrior Trading's free training courses, you can learn about finding the right stocks to trade, developing strategies for reducing risk, and building a trading strategy for any market.
Warrior Trading has earned an excellent rating from Trustpilot (4.7 out of five stars) and holds an A+ rating from the BBB.
Best Chat Rooms : Investors Underground
One of the more established stock trading schools, Investors Underground supports a highly interactive and energetic chat room moderated by some of the world's top traders, making it our choice as the penny stock trading courses with the best chat rooms.
Solid industry reputation
Comprehensive course offerings
Large and active chat rooms
Heavy on mentoring
Big discount on annual membership
Pricing is on the high end for beginners
Membership doesn't include a trading course
Investors Underground had one of the most active and energetic chat rooms attended by thousands of traders each day. Moderated by world-class traders like Tim Grittani and Eric Wood, the IU chat room experience is second-to-none, making it our choice as the penny stock trading course with the best chat rooms.
Nathan Michaud, another Tim Sykes disciple, founded Investors Live and later rebranded into Investors Underground.
IU has one of the more comprehensive courses, offering the essential resources for beginners through advanced traders. Beginners can start with the Textbook Trading course with eight hours of content covering everything they need to start stock trading.
The Textbook Trading course then transitions into more advanced topics leading to IU's second-tier course—Tandem Trader. This is a 12-hour advanced day trading course that includes monthly webinars along with access to a live trading floor, video recaps, a nightly watch list, and more than 1,000 video lessons. Students can watch live screenshots of Michaud's trades with his tick-by-tick commentary.
Students can start with IU's free, three-hour course before investing $1,297 for the Textbook Trading and Tandem Trader courses (sold as a package). That price includes the $297 subscription for Elite Membership, which you can purchase for $697 per quarter or $1,897 annually. Beginners can start with the Standard Membership for $197 per month and upgrade later.
IU has 4.7 out of five stars with Trustpilot and an A+ rating with the BBB, though it is not accredited.
Best for Newbies : Udemy
With Udemy, you don't have to shell out hundreds or thousands of dollars to learn the basics and see if penny stock trading is right for you. Udemy offers beginning penny stock trading courses at a small fraction of the price, making it our choice as the best penny stock trading course for newbies.
World-class provider of educational courses
Learn all the basics of penny stock trading for less than $100
Courses taught by successful traders
Extensive course selection
No opportunity for practical application
No chat rooms
If all you want to do is stick your toe in the water to learn the basics of penny stock trading without spending a fortune, you can't do better than Udemy's comprehensive educational courses. That's why we chose it as the best penny stock trading course for newbies.
While its courses provide expert instruction and demonstration by successful traders, there is no opportunity for practical application. With that said, there is probably no better opportunity to learn penny stock trading from the ground up for less than $100.
For $34, the Start Day Trading Penny Stocks in 60 Minutes course provides more than two hours of instruction through 16 lectures. The curriculum takes you from "What is Day Trading?" through "Trading Psychology," all the way to developing a trading checklist. Instructor Yossof (Joseph) Sharifi, a successful entrepreneur and stock trader, has taught over 10,000 students who have awarded him 4.7 stars out of five.
Joseph also teaches, "Need Money? Day Trading Penny Stocks with Little Cash," a course demonstrating how to grow a small trading account in a large account and find low-cost penny stocks to day trade, among other vital topics. The cost is $34 and it runs about 2.5 hours.
Best Value : Bullish Bears
With a free 14-day trial membership and just $49 monthly for Deluxe membership, beginning or experienced traders can access a wide range of quality courses and resources, making it our pick as the best value in a penny stock trading course.
14-day free trial
Low-cost access to comprehensive training resources
A "safe" environment for learning to trade
24/7 access to chat rooms
Few online reviews
The Bullish Bears markets itself as a "pay it forward stock trading service company" with a "passion for trading, a desire to help people succeed as traders, and a love for our community." Its course offering appears to be as robust and comprehensive as other top trading course providers for less, which is why we chose the Bullish Bears as the best value for a penny stock trading course.
Aside from teaching the essential knowledge and skills for successful day trading, their emphasis is on providing students with a "safe place" to experience the ups and downs of trading.
The free, 14-day trial provides access to all its courses. You also have access to daily watch lists, the Penny Stock chat room, live streaming trading room, trend line tools, scanner templates, and swing alerts. After 14 days, your membership can continue for $49 a month or a ridiculously low $300 per year.
The trade rooms are a critical component of the learning process, providing traders with 24/7 access for studying the trading process and a relaxed environment for learning the nuances of trading from others.
On the downside, we couldn't find any reviews beyond its Facebook page (five stars out of five from 95 reviewers). That may be because it's a relatively new provider. However, its 14-day free trial with access to all its courses and resources should be enough to determine its quality. And, at $49 a month, cancellable at any time, the risk is minimal.
Best for Advanced Traders : MadazMoney
If you want to up your high-octane trading game by trading right alongside verified seven-figure traders while gleaning their insights, MadazMoney is the place to be, which is why it's our choice as the best penny stock trading course for advanced intraday traders.
Large and growing community of skilled intraday traders
Highly interactive trading rooms
Reasonably priced monthly membership
Training course is expensive
Not a lot of learning resources
Madaz offers an extensive trading course, but its claim to fame is the close, one-on-one mentoring that takes place in its adrenalin-fueled trading rooms, making it our choice as the best penny stock trading course for advanced intraday traders.
Madaz offers an extensive 90-day course covering all aspects of its trading strategies. The $2,490 live course is taught by Max and his "professors," who are also successful seven-figure traders. Lessons include a webinar, live stream, and curated content.
But the real draw is Madaz's $99-per-month membership ($990 prepaid annually), which gives members access to Max's inner sanctum. In addition to the chat room, members have complete access to high-level video tutorials neatly organized by categories. The membership also provides daily trade recap videos and a trade tracker that allows members to track their trades. The most valuable membership component is daily access to one-on-one mentoring via the chat room, where Max also provides real-time commentary on his trades. Traders can message the moderators any time with questions.
The idea is for traders to observe and learn by osmosis as they follow Max as he sets up trades. Max wants his students to understand why he enters and exits trades. He also stresses the mental conditioning needed to control emotions.
Madaz's learning environment is not for everyone. But the 700 experienced intraday traders who are members know why they're there. We couldn't find any customer reviews on Madaz, but that might not be unusual considering it has only been active since 2018. However, Madaz is well-reviewed by legitimate trading review sites, such as Elitetrader.com, Reddit, and Tradingreviewers.com.
The quality of penny stock trading courses can vary widely, from an outright scam to a comprehensive offering at a reasonable price. Profiting from penny stock trading requires confidence developed through a solid foundation of knowledge and the opportunity to try out that knowledge in simulated situations with the benefit of expert guidance. That’s what you’ll get with any of the courses on our list.
For penny stock traders of any experience level, you can't go wrong with Tim Sykes, Investor Underground, and Warrior Trading. All are excellent courses with comprehensive resources to move students up the learning curve. With the longest track record of developing successful traders, Tim Sykes is the best overall. Warrior Trading has the most comprehensive course offerings to help beginning to advanced traders. Investor Underground is a contender for both those categories, but it's most recognized for its active and energetic chat rooms.
|Penny Stock Trading Course||Why We Picked It||Key Feature|
|Tim Sykes Trading Program||Best Overall||Long, successful track record|
|Warrior Trading||Best Comprehensive Course Offering||Extensive offering for any experience level|
|Investors Underground||Best Chat Rooms||$997 to $1497 for 3-month course|
|Udemy||Best for Newbies||Low-cost beginning courses|
|Bullish Bears||Best Value||Lowest cost for complete offering|
|MadazMoney||Best for Advanced Traders||Close, one-on-one mentoring|
Frequently Asked Questions (FAQs)
How Does Penny Stock Trading Work?
Penny stocks are stocks of small, fledgling companies selling for less than five dollars that trade outside the major market exchanges. They trade on the over-the-counter (OTC) exchange and are listed on the "pink sheets," a list of penny stocks compiled daily with their bid and ask spreads. The bid price represents the maximum price a buyer is prepared to pay for the stock, and the ask price is the minimum price a seller will take. Because most penny stocks tend to trade on low volume, their bid and ask spread can be larger, making them less liquid, which increases their risk.
You can buy and sell penny stocks through an online broker who will execute your trades. You can simply buy and hold them, hoping their price increases over time. Or you can trade them, taking advantage of their daily or intraday price movements. When stocks are selling for less than a dollar, it doesn't require a lot of capital to buy a position of 1,000 shares. But, if you want to trade the stock for a quick profit, as most traders want to do, you need to know how to identify the right stocks and the best time to enter and exit the trade.
What Do You Learn in a Penny Stock Trading Course?
A good penny stock trading course will educate you on the nature of the market, how to set up a trade, how to follow technical analysis to enter and exit a trade, the psychology of trading, and advanced trading techniques, with the ultimate goal of turning you into a self-sufficient trader.
If you choose a course that offers interactive learning through participation in trading or chat rooms or trading simulators, you can apply your knowledge in simulated or actual trading scenarios. One of the significant benefits of a good trading course is having access to mentors who can coach you along the way.
How Much Do Penny Stock Trading Courses Cost?
You don't have to spend a lot of money to learn how to trade penny stocks. There are highly reputable trading course providers that offer excellent content at a low cost, such as Udemy's two starting courses for less than $100. Bullish Bears is an example of a comprehensive trading course for a low-entry membership of just $49 monthly.
For a much deeper immersion into the ins and outs of penny stock trading, you could spend anywhere from $100 to $250 monthly in addition to the cost of a training course ($1,000 to $2,500). At those prices, it's essential to carefully consider how the higher cost can translate into higher returns.
Who Are Penny Stock Courses Best For?
As evidenced by the penny stock courses reviewed in this roundup, they can appeal to traders of all experience levels. The key is to match your experience level, goals, and time and money availability to the right course. If you have limited time and money, you should start with a free or low-cost course and then upgrade to a more comprehensive course to advance your knowledge.
How We Chose the Best Penny Stock Trading Courses
Searching for a penny stock trading course can be tricky. Their websites often boast big claims of million-dollar profits, and not all can be verified. Plus, of the many stock trading courses found online, not all have a penny stock trading component. We found a dozen providers that offer penny stock trading courses with various formats and varying degrees of quality and costs. We looked at their track records, the instructors' expertise, access to a trading community and mentors, the extent of learning tools and resources, and any unique characteristics that added value to the courses. With that, we narrowed the field to the best penny stock trading courses in six categories.