What are the Top Penny Stocks to Watch in 2021?

As the global economy gradually recovers from the pandemic, investors are looking for new opportunities to invest their money. Penny stocks, or stocks trading at a low price per share, can offer a high potential for returns, but also carry higher risks. In this article, we will discuss the toppenny stocksto watch in 2021 and provide someinvestment strategies.

1. What are penny stocks?

Penny stocks are stocks that trade at a low price per share, usually under $5. These stocks are often associated with small companies that are not listed on major stock exchanges. Penny stocks can be highly volatile, which means that they can offer high potential returns, but also carry higher risks.

2. Top penny stocks to watch in 2021

a. VivoPower International PLC (VVPR)

VivoPower International is a global solar power company that provides sustainable energy solutions. The company has a strong presence in Australia and the United States, and has recently expanded into Europe. Its stock has been performing well in 2021, with a 52-week range of $1.07 to $19.55.

b. Tonix Pharmaceuticals Holding Corp. (TNXP)

Tonix Pharmaceuticals is a clinical-stage biopharmaceutical company that develops treatments for psychiatric and pain disorders. The company has several promising drug candidates in its pipeline, including a COVID-19 vaccine. Its stock has been volatile in 2021, with a 52-week range of $0.36 to $2.08.

c. Senseonics Holdings Inc. (SENS)

Senseonics Holdings is a medical technology company that develops implantable glucose monitoring systems for people with diabetes. The company's products have received regulatory approval in Europe and the United States. Its stock has been performing well in 2021, with a 52-week range of $0.32 to $3.90.

3. Investment strategies for penny stocks

Investing in penny stocks can be risky, but there are several strategies that can help investors mitigate those risks.

a. Do your research

Before investing in a penny stock, it's important to do your research. Look for information about the company's financials, management team, and industry trends. You can also look for news articles and analyst reports to get a sense of the company's prospects.

b. Diversify your portfolio

Investing in penny stocks can be risky, so it's important to diversify your portfolio. Don't put all your money into one stock. Instead, spread your investments across several different stocks to reduce your risk.

c. Set stop-loss orders

A stop-loss order is an instruction to sell a stock if it falls below a certain price. Setting a stop-loss order can help you limit your losses if a stock's price drops suddenly.

4. Conclusion

Penny stocks can offer high potential returns, but also carry higher risks. Investors should do their research, diversify their portfolio, and set stop-loss orders to mitigate those risks. VivoPower International, Tonix Pharmaceuticals, and Senseonics Holdings are three penny stocks to watch in 2021, but investors should carefully consider their investment strategies before investing in any penny stock.