This week\u2019s biotech penny stocks are moving on a mixed bag of catalysts\u2026 And as I cautioned last week, a lot of these big percent gainers aren\u2019t holding their highs. We\u2019re just not seeing as many multi-day runners in this sector right now. You MUST be ready to trade like a sniper. Plan your trades and protect your account by cutting losses quickly. These stocks are even sketchier than ever... Don\u2019t be stubborn \u2014 that can lead to huge losses or account blow-ups. Prepare for the trading battlefield with your watchlist, trading plan, discipline, and the right mindset... Here are the top biotech penny stocks I\u2019m watching this week and why. https:\/\/twitter.com\/timothysykes\/status\/1422333128891408386 Top Biotech Penny Stocks to Watch These are the top stocks on my watchlist. \u2018Watch\u2019 is the key word here. There\u2019s no guarantee that there\u2019ll be a trading opportunity. Remember, these stocks move FAST. Before we get to my list of stocks to watch, here are a few of my top resources for penny stocks\u2026 \tIf you\u2019re new to penny stocks, start here with this FREE online guide. \tReady to learn how to build your own stock watchlist? This post is for you. \tDiscover how I find all the stocks on my watchlists here. How do I find hot stocks? I use StocksToTrade every day. For me, it\u2019s the best tool because I helped design it specifically for trading penny stocks. (I\u2019m also an investor.) It has awesome charts, built-in scans, social media feeds, and so much more to help you do your research. And its Breaking News Chat add-on feature is a game-changer in this hot market. It helped me make record profits in 2020.* Get a StockToTrade 14-day trial for only $7... Or try it with the Breaking News Chat for only $17! Now, let\u2019s get to the top biotech penny stocks to watch this week\u2026 Biotech Penny Stocks #1: Lixte Biotechnology Holdings, Inc. (NASDAQ: LIXT) LIXT is a drug discovery company. It uses biomarker technology to identify targets responsible for serious diseases. On August 3 the company announced a preclinical study that showed its lead compound \u201cwas reported to enhance the effectiveness of elements of standard therapy in models of small cell lung cancer.\u201d Read the full press release here. StocksToTrade\u2019s Breaking News Chat alerted the news right before the market open.** The stock gapped up from $2.80 to $3.30 and spiked 30%, making a high of $4.12. (Past performance is not indicative of future results.)\u00a0 But the stock didn\u2019t hold its gains and made a low of $2.63. I\u2019ll watch this one for a dip buy into a big panic. Biotech Penny Stocks #2: Innovation Pharmaceuticals Inc. (OTCQB: IPIX) IPIX develops therapies for inflammatory diseases and cancer. The stock returns to the watchlist from last week. It was on watch for a breakout over 30 cents. The stock broke out on July 28 and is consolidating. (Past performance is not indicative of future results.)\u00a0 On August 2 the company provided an update on antiviral research for its potential COVID-19 treatment in development under FDA Fast Track designation. I\u2019ll watch for it to potentially continue higher if it breaks out over $0.375. Biotech Penny Stocks #3: Enzolytics Inc. (OTCPK: ENZC) ENZC develops infectious disease treatments. The latest news on the company is from July 29. The company reported progress toward completing clinical trials for its potential HIV therapy. On August 2, the stock was pumped and promoted on social media. It\u2019s a former supernova and it had its first green day. It was closing strong so I bought 155,000 shares at $0.1825 to hold overnight. The promoters didn\u2019t do as good of a job as I thought \u2026 The next day the stock panicked at the open. But I sold quickly and took a single, selling at $0.191 for a profit of $1,318.* Let\u2019s see if the promoters can pump this one back up. Biotech Penny Stocks #4: Altamira Therapeutics Ltd. (NASDAQ: CYTO) CYTO\u2019s a biotech that develops potential treatments for ear, nose, and throat disorders. On August 3 the company announced it launched a website specifically for its nasal spray that may help protect against airborne viruses and allergens. The stock spiked almost 80 cents a share after the news. It has a history of huge spikes but also fails to hold its gains. I\u2019ll watch for a dip-buy opportunity. Biotech Penny Stocks #5: Outlook Therapeutics, Inc. (NASDAQ: OTLK) OTLK develops potential treatments for eye diseases and vision loss. On August 3 the company announced positive Phase 3 data for its potential treatment for neovascular age-related macular degeneration. President and CEO C. Russell Trenary III said, \u201cWe are delighted with the compelling results observed in NORSE TWO, which represent a significant and potentially transformational milepost for patients suffering from wet AMD. We plan on bringing the first ophthalmic formulation of bevacizumab to market, if approved.\u201d Read the full press release here. HC Wainwright also upgraded the stock's price target to $6. It gapped up from $2.26 to $3 and made a high of $3.27. It traded high volume but couldn\u2019t hold its gains. It\u2019s a former multi-day runner. I\u2019ll watch it for a potential bounce to the upside. Biotech Penny Stocks #6: Xenetic Biosciences, Inc. (NASDAQ: XBIO) XBIO develops treatments that target tumors. It\u2019s another stock returning from last week. It was on watch for a short squeeze after the stock made a big move on news but closed near its lows. The stock squeezed above $5 on July 29. (Past performance isn\u2019t indicative of future results.)\u00a0 The stock\u2019s consolidating. I\u2019ll watch for it to break out or break down before planning a trade. It has a low float of roughly eight million shares, so it could have a volatile move. Biotech Penny Stocks #7: Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) GLMD develops liver disease treatments. On August 2 the company announced, \u201cthe FDA agreed with its plan to use Aramchol meglumine (in lieu of Aramchol free acid) in its Phase 3 ARMOR study without the need to conduct additional nonclinical and clinical studies other than planned limited pharmacology studies relating to Aramchol meglumine.\u201d Read the press release here. The stock went from $2.70 to $3.40 after the news but it didn\u2019t hold its gains. The stock has a history of failed spikes. I\u2019ll watch it for a dip buy into a big panic. Biotech Penny Stocks #8: IntelGenx Technologies Corp. (OTCQB: IGXT) IGXT develops oral thin film products to treat migraines and depression, as well as pain and nausea in cancer patients. The company will report second-quarter financial results on August 4 after hours. A conference call will follow at 4:30 p.m. Eastern. I\u2019ll watch for a reaction to the earnings and one of my patterns before I plan a trade. Biotech Penny Stocks #9: Phio Pharmaceuticals Corp. (NASDAQ: PHIO) PHIO develops immuno-oncology therapies. On August 3 the stock was up 10% with no news. It has a history of volatile moves. But I\u2019d like to see a news catalyst and more volume before I plan a trade. Biotech Penny Stocks #10: Bionomics Limited (OTCQB: BNOEF) BNOEF develops drug candidates to treat central nervous system disorders. On August 2 the company announced it plans to conduct an IPO in the U.S. of American depositary shares (ADS) on the Nasdaq. The stock had a green day after the news and the following day it gapped up. I\u2019ll watch it for a potential breakout over 16 cents, ideally with more volume. Get the List of Penny Stocks I'm Watching Delivered to Your Inbox Want to know which stocks I\u2019m watching each week? Subscribe to my no-cost watchlist. I\u2019ll send my top penny stocks to watch right to your inbox every week. It can help you learn the process I follow for every stock. I\u2019ll say it again \u2026 The stocks on my watchlist aren\u2019t an automatic buy. Remember to do your own due diligence and research. If you\u2019re trading without a trading plan, you\u2019re gambling. Don\u2019t be a degenerate gambler \u2014 trade smart! \ud83d\udc49\ud83c\udffc SUBSCRIBE to my no-cost weekly stock watchlist here. Conclusion Biotech penny stocks are stocks of small, developmental companies. These companies are usually desperate for cash. They need it to continue developing products and for testing and trials. Trade them with caution... They\u2019re known to be extremely volatile. They can have huge price swings. One minute they\u2019re flying high on positive news \u2014 the next they\u2019re down due to bad trial results, side effects, or stock dilution. If you\u2019re prepared to take advantage of the price swings, these stocks can offer great trading opportunities... In my Trading Challenge chat room, my students and I talk about the hottest penny stocks. And many top traders who got their start in the Challenge are now chat moderators who answer questions and help out new students. If you want to join a community of top traders, apply for my Trading Challenge. I don\u2019t accept everyone. I only want the most dedicated students who are willing to put in the time and effort it takes to become my next top student. Could it be you? What do you think of these biotech penny stocks to watch? Let me know in the comments \u2026 I love to hear from you! Disclaimers *Please note that these kinds of trading results are not typical and do not reflect the experience of the majority of individuals using our products. From January 1, 2020, to December 31, 2020, typical users of the products and services offered by this website reported earning, on average, an estimated $49.91 in profit. It takes years of dedication, hard work, and discipline to learn how to trade. Individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose. **Tim Sykes has a minority ownership stake in StockstoTrade.com.