What Are the Top Penny Stocks to Watch in 2021?

The world of penny stocks can be a tricky one to navigate, but with careful research and a bit of investment savvy, it is possible to make significant profits. In this article, we will take a look at thetop penny stocksto watch in 2021 and explore the strategies that you can use to invest successfully in this market.

What are penny stocks?

Penny stocks are low-priced stocks that trade outside of the major market exchanges. These are typically small companies with a market capitalization of less than $300 million. Because they are not listed on major exchanges, they are often less liquid and more volatile than blue-chip stocks.

What are the top penny stocks to watch in 2021?

1. Novavax Inc (NVAX)

Novavax is a clinical-stage biotechnology company that develops vaccines for infectious diseases. The company's COVID-19 vaccine is currently in phase 3 clinical trials, and if successful, it could be a major player in the fight against the pandemic. Novavax's stock has already seen significant gains in 2020, and it could continue to rise in 2021.

2. Sunworks Inc (SUNW)

Sunworks is a solar energy company that designs and installs solar panel systems for commercial and residential customers. With the increasing demand for renewable energy sources, Sunworks could see significant growth in 2021. The company's stock has already seen impressive gains in recent months, and it could continue to rise as more people look for sustainable energy solutions.

3. Zomedica Corp (ZOM)

Zomedica is a veterinary diagnostic and pharmaceutical company that develops products for companion animals. The company's focus on the growing pet industry could make it an attractive investment in 2021. Zomedica's stock has already seen significant gains in recent months, and it could continue to rise as more people adopt pets during the pandemic.

Investment strategies for penny stocks

Investing in penny stocks requires a different approach than investing in blue-chip stocks. Here are a few strategies to keep in mind:

1. Do your research

Before investing in any penny stock, it is important to do your research. Look at the company's financial statements, management team, and industry trends. Be sure to read the company's annual report and any news articles about the company.

2. Diversify your portfolio

Penny stocks can be highly volatile, so it is important to diversify your portfolio. Don't put all of your money into one stock. Instead, spread your investments across multiple stocks to minimize risk.

3. Set stop-loss orders

Stop-loss orders can help you limit your losses if the stock price starts to drop. A stop-loss order is an order to sell a stock if it falls below a certain price. This can help you avoid losing too much money if the stock price takes a sudden dive.

Conclusion

Investing in penny stocks can be a great way to make significant profits, but it requires careful research and a bit of investment savvy. By keeping these strategies in mind and staying up-to-date on industry trends, you can make informed investment decisions and potentially see significant gains in 2021.