Spikers are back in biotech penny stocks \u2026 but they may not stay up. Recently we\u2019ve seen huge gap-ups fail at the open \u2014 leaving undisciplined traders holding a loser. Sadly, not enough traders cut losses quickly. Or they get greedy and hold a winner too long, letting it turn into a loser. If you\u2019re in a winning trade, you MUST take profits along the way. I almost always sell too soon. That\u2019s OK. My gains still add up over time.* It\u2019s important to have realistic expectations and trading goals. Know your strengths and weaknesses. I know I\u2019m not a patient trader. I trade the sketchiest stocks in the market, so I don\u2019t hold my positions for long. But trading safely is important no matter which stocks you trade\u2026 My long-time friend and millionaire trader Paul Scolardi is on fire lately trading meme stocks.* He\u2019s hosting a no-cost webinar tonight (July 28) at 8 p.m. Eastern to share his meme stock trading secrets. Don\u2019t miss this no-cost event \u2014 sign up here for access. Here are the top biotech penny stocks I\u2019m watching this week and why\u2026 https:\/\/twitter.com\/timothysykes\/status\/1419808023174864896 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: Tyme Technologies, Inc. (NASDAQ: TYME) TYME develops cancer therapies. On July 26 it announced it was granted a patent for its targeted drug delivery method to treat cancer. Read the full press release here. The stock traded over 300 million in volume following the news. But it couldn\u2019t hold its gains and has a history of failed spikes. I\u2019ll watch it for a morning panic dip-buy opportunity. Biotech Penny Stocks #2: IMV Inc. (NASDAQ: IMV) IMV is a Canadian biotech company that develops cancer immunotherapies and vaccines. It spiked on high volume on July 26 with no news. It looks like the move was a short squeeze. It tanked a few days earlier on news of an offering at a deep discount. Without a catalyst to bring in volume and push it higher, it\u2019s on watch for a panic dip-buy opportunity. Biotech Penny Stocks #3: EyeGate Pharmaceuticals, Inc. (NASDAQ: EYEG) EYEG develops treatments for inflammatory and immune diseases in the eye and nervous system. The stock skyrocketed over 150% in after-hours on July 26 after the company announced it entered a non-binding letter of intent to acquire Bayon Therapeutics. The press release also announced, \u201cBrian M Strem, Ph.D., Co-Founder, Director and former Chief Executive Officer of Okogen, Inc as well as Co-Founder and Managing Director of Bayon Therapeutics, was appointed as permanent President, Chief Executive Officer and board member, effective immediately.\u201d It\u2019s a low float stock with roughly five million shares. The move could\u2019ve been part of a giant short squeeze. The stock panicked at the open and continued to fade all day. It had such a big move to the downside, I\u2019ll watch for a potential bounce and quick short squeeze to the upside. Biotech Penny Stocks #4: Cerecor Inc. (NASDAQ: CERC) CERC develops treatments for rare diseases. In after-hours on July 26, the company released positive initial Phase 1b data for its potential treatment for Crohn\u2019s disease. The stock spiked about $1 per share in a few minutes after the news was released. But it\u2019s another stock that failed at the open and has a history of failed spikes. I\u2019ll watch this one for a morning panic dip-buy opportunity. Biotech Penny Stocks #5: Innovation Pharmaceuticals Inc. (OTCQB: IPIX) IPIX develops therapies for inflammatory diseases and cancer. The most recent news on the company is from July 22. The company announced that doctors presented data supporting its drug\u2019s antiviral potential at the American Society of Virology\u2019s 40th Annual Meeting on July 21. I\u2019ll watch IPIX for a potential multi-month breakout over 30 cents. Biotech Penny Stocks #6: Xenetic Biosciences, Inc. (NASDAQ: XBIO) XBIO develops treatments that target tumors. It ran on Friday, July 23 after its partner company announced it\u2019s expanding its manufacturing facility. It was a StocksToTrade Breaking News Chat winner.* The chat guys alerted the news in premarket and the stock spiked from the low $2s to a high of $4.75. But it didn\u2019t hold its gains and it closed at $2.52. The following Monday, the company announced a $12.5 million private placement. The press release said the company, \u201chas entered into a definitive agreement with a single healthcare-focused institutional investor for the purchase of 4,629,630 shares of its common stock (or common stock equivalents) at a purchase price per share of $2.70.\u201d The price of the offering was higher than the stock\u2019s closing price on Friday. The agreement also included warrants to purchase another 4,629,630 shares of common stock at $3.30 per share. The stock spiked and squeezed after the news. It has a low float of roughly eight million shares, so it could squeeze higher if the company announces more news. But I won\u2019t chase it. I\u2019ll watch for a panic dip-buy opportunity. Biotech Penny Stocks #7: Oragenics, Inc. (NYSE: OGEN) Oragenics develops antibiotics to fight infections. It\u2019s also developing a potential COVID-19 vaccine. The stock spiked 50% on July 27 after the company announced it entered into a licensing agreement with the National Research Council of Canada to rapidly develop SARS-CoV-2 vaccines. Read the full press release here. The stock had a huge gap up on high volume following the news. But it\u2019s another stock that has a history of failing to hold its gains. And it closed near its daily low. I\u2019ll watch for a dip-buy opportunity into a big panic. Biotech Penny Stocks #8: Dyadic International, Inc. (NASDAQ: DYAI) DYAI develops and sells enzymes and proteins. The company also conducts research and development of vaccines. On July 27 the company announced a licensing agreement to develop, commercialize, and distribute vaccines in Africa. Read the full press release here. The stock climbed as high as 60% following the news and traded almost 100 million in volume. And yep, it\u2019s another failed spiker. It\u2019s another one I\u2019ll watch for a panic dip buy. Biotech Penny Stocks #9: ObsEva SA (NASDAQ: OBSV) OBSV develops therapies to improve women\u2019s reproductive health. On July 27 the company announced it entered a license agreement with another company to develop an investigational agent to potentially treat preterm labor. \u201cIf approved, it has potential to be a first-in-class innovation for this common and serious condition with no approved therapies for acute treatment of preterm labor in the United States.\u201d Read the full press release here. The stock gapped up and climbed over 30% following the news. It has a history of multi-day runs so I\u2019ll watch for it to potentially continue higher. Biotech Penny Stocks #10: Institute of Biomedical Research Corp. (OTCPK: MRES) MRES is a biomedical research and analytics company. The stock bounced 100% on July 27 with no news. It\u2019s following my 7-step pennystocking framework to a T. I\u2019ll watch it for a dip-buy opportunity. 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.