Top Biotech Penny Stocks to Watch Out for in October 2024

Biotech penny stocks are low-priced shares in small pharma and drug development and treatment companies. It’s normal for a biotech penny stock to spike after good study results or drug pipeline news. But this volatility cuts both ways — these sketchy stocks often dilute their float to raise cash, hurting their share value in the process.

4 Biotech Penny Stocks to Watch in October 2024

My top 4 biotech penny stocks to watch for October 2024 are:

• NASDAQ: ADTX — Aditxt — The Merger News Biotech Penny Stock
• NASDAQ: ONCO — Onconetix Inc — The Biotech Attracting Smart Money
• NASDAQ: BPTH — Bio Path Holdings Inc — Former Runner Spiking on Obesity News
• NASDAQ: TNXP — Tonix Pharmaceuticals Holding Corp — True Penny Oracle Signal Stock

Don’t get too excited – biotech stocks are NOTORIOUS for diluting immediately after their runs …

There is no such thing as a sure thing. That goes double for the biotech sector.

These aren’t stock “picks.” They’re stocks I’m watching to see if they fit my patterns.

That’s what trading is. Don’t burn yourself out on low-potential plays. Be safe, and wait for the truly Grade-A setups …

There’s no guarantee that any of my watchlist picks will be tradeable. But if something happens, smart traders should be ready.

Here’s some background info on biotech penny stocks:

• What is the most promising biotech penny stock?

A stock with a lot of volatility like Aditxt (NASDAQ: ADTX) is a good bet for the most promising biotech penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.

• What are the top 3 biotech penny stocks to buy now?

My top 3 biotech penny stocks to buy now (as long as their price action is strong) are Aditxt (NASDAQ: ADTX), Bio Path Holdings Inc (NASDAQ: BPTH), and Onconetix Inc (NASDAQ: ONCO).

• Which biotech penny stocks have a “Strong Buy” analyst rating?

Analysts don’t give any biotech penny stocks “strong buy” ratings. These stocks are sketchy and unstable, and should never be investment targets. Always trade with a plan.

Now, let’s get to the top biotech penny stocks to watch this month!

Top Biotech Penny Stock Picks

My top biotech penny stock picks for October — rated on chart pattern, price action history, and news — include the following:

Stock Ticker	Company	Performance (YTD)
NASDAQ: ADTX	Aditxt	– 99.38%
NASDAQ: ONCO	Onconetix Inc	– 35.47%
NASDAQ: BPTH	Bio Path Holdings Inc	– 89.04%
NASDAQ: TNXP	Tonix Pharmaceuticals Holding Corp	– 98.92%

The biotech penny stocks on this list are some of the wildest movers on the market …

Trading any of these stocks should be approached with a clear strategy and an understanding of the risks involved. I don’t trade until I see a setup I like.

Jump ahead to get to my trading plans for these top biotech penny stocks!

Best Biotech Penny Stocks for October 2024

These are the top 5 biotech penny stocks to watch in October 2024…

No, that doesn’t mean that I’ll trade them. Learn the patterns that work best for you — you might see a chance to use them with these stocks!

#1: Aditxt (NASDAQ: ADTX) — The Merger News Biotech Penny Stock

My first biotech penny stock pick is Aditxt (NASDAQ: ADTX).

This stock hasn’t quite given us the run that we’ve been looking for.

But the volatility is still present.

For example, in July, and again in August, the stock spiked 70% and 110%* respectively.

Plus, the stock has a float of only 89k shares. That’s miniscule.

Stocks with a low float can spike higher because the low supply of shares translates to higher prices when demand increases. It’s a law of supply and demand.

Usually, we look for stocks with a float below 10 million shares. And 89k is really tiny.

On October 8, the stock spiked again after the company announced a successful third investment in its merger with Evofem Biosciences Inc. (OTCQB: EVFM) for $460k.

On October 31, ADTX will purchase another $2.28 million worth of shares.

In premarket on October 8, after the announcement of the third investment round, ADTX spiked 25%.

The spike faded after the market opened. But we’ve already seen the stock behave with volatility as a direct result of a news catalyst.

It’s only a matter of time until this low-float biotech announces a catalyst that causes a MUCH bigger spike.

#2: Onconetix Inc (NASDAQ: ONCO) — The Biotech Attracting Smart Money

My second biotech penny stock pick is Onconetix Inc (NASDAQ: ONCO).

On October 3, we learned that ONCO received $2 million from a private placement and secured a $25 million line of credit.

A private placement means that there’s somebody out there investing a lot of cash in this company. And it shows good faith in the business.

The stock didn’t spike much as a result of the news, but it’s already experiencing a lot of volatility and possible price resistance from a 90% spike on September 26 and 27.

The chart shows highs from September 27 at $6.50 that could act as a breakout level.

Wait for the volume to come back before planning a trade. On the chart below you can see that the trading is a little … sparse, in recent days.

Every candle represents one trading minute, volume is indicated in the bottom section of the chart:

We need more volume to provide liquidity to get in and out.

We’re looking for at least 1 million shares traded on the day. Keep an eye on the liquidity!

#3: Bio Path Holdings Inc (NASDAQ: BPTH) — Former Runner Spiking on Obesity News

My third biotech penny stock pick is Bio Path Holdings Inc (NASDAQ: BPTH).

On October 10, we learned that BPTH was expanding its business into the treatment of obesity.

It’s traditionally a company that works to treat cancer. This is the first time it will use cancer-treating technology and practices to focus on obesity and related health concerns.

There’s no getting around it … Excess fat is bad for people’s health.

And in 2024, we’ve already seen an explosion of obesity and weight-loss treatments. Ozempic, manufactured by Novo Nordisk (NYSE: NVO), is the prime mover of this market.

NVO has a $400 billion market cap, and still managed to spike 60% over the course of the last year. But low priced stocks can attempt to ride the wave with press releases that leach off of the hype. That’s exactly what BPTH is doing.

Below, you can see the 65% spike from BPTH on October 8. Every candle represents one trading minute:

And that was just day one … 

Notice how the chart consolidates into the close. That’s a hint that the price could spike higher.

Plus, StocksToTrade shows that the float is only 2.4 million shares … Remember what I said about stocks with a low float.

#4: Tonix Pharmaceuticals Holding Corp (NASDAQ: TNXP) — True Penny Oracle Signal Stock

My fourth biotech penny stock pick is Tonix Pharmaceuticals Holding Corp (NASDAQ: TNXP).

On October 8, TNXP announced it was collaborating with X-Chem Inc. to utilize its AI and machine learning to help develop antivirals.

The presence of ‘AI’ in this press release caught my eye.

AI is still one of the hottest sectors in the market. And similar to how BPTH is trying to piggyback off of the Ozempic weight-loss hype, TNXP is trying to piggyback off of the AI hype.

Our StocksToTrade Oracle trading algorithm really liked this stock after the news was announced. But when the market opened, the price never met our targets and the chart faded.

It was a kind of a bummer, but the important thing is: The Oracle trade levels kept us from entering a bad position.

Try using Oracle the next time you find a volatile stock.

TNXP showed us that it knows the catalysts that can cause big stock spikes. We just have to wait for one to stick.

 

*Past performance does not indicate future results

Biotech Stocks Under $5

The allure of hot sector stocks, especially when they’re also penny stocks, is undeniable. These stocks present a unique blend of opportunity and volatility. The biotech industry is booming, with advancements and applications spreading across various sectors, from drug development to gene editing, making biotech stocks a magnet for investors looking for the next big breakthrough. The gains here can be proportionately greater than those from more established stocks, mainly because even minor positive developments or clinical trial results can send their prices soaring.

However, it’s crucial to approach these opportunities with a clear strategy and an understanding of the risks involved. The volatility of penny stocks, combined with the speculative nature of biotech ventures, means that while the potential for rapid gains is significant, the risk of losses is equally high. Conduct thorough research, looking beyond the hype. And never invest in these stocks — only trade them.

Remember, the key to success in trading biotech stocks under $5 is not just about jumping on every opportunity but being selective and strategic. It’s about leveraging the explosive potential of the biotech sector while managing risk meticulously. By focusing on companies with the potential to lead in their niche, traders can capitalize on the disproportionate gains that these penny stocks offer, all while keeping their investment strategy tight and cutting losses quickly.

Upcoming Biotech Companies

Keep an eye on the news for upcoming biotech companies. These are often the ones that have the most potential for high returns. But be cautious; not every new biotech company will be a winner. Always do your due diligence before adding any stock to your watchlist.

It’s also a good idea to keep tabs on the overall market. Monitoring the market isn’t just about checking prices; it’s about understanding trends and identifying potential breakout stocks. This proactive approach can give you a leg up in making profitable trades. If you’re looking for a curated list to help you get started, check out these stocks to watch.

What Are Biotech Penny Stocks?

Biotech penny stocks are shares of small biotechnology companies that trade at relatively low prices, typically under $5 per share. These companies are often in the early stages of development, focusing on innovative medical treatments and technologies. The low price point makes these stocks accessible to many traders, but it also means they come with significant risks.

These companies are heavily involved in the discovery and development of new medicines and therapies for diseases and disorders. For example, they may be working on groundbreaking treatments for conditions like Alzheimer’s disease or cancer. Due to the speculative nature of these ventures, biotech penny stocks can exhibit high volatility, offering both substantial upside potential and considerable downside risk.

The allure of biotech penny stocks lies in their growth potential. A successful product candidate can lead to massive gains if it reaches commercialization. However, the path to success is fraught with challenges, including rigorous testing and regulatory approvals. Understanding the inherent risks and rewards is crucial for anyone considering trading in this sector.

Biotech stocks can be highly rewarding, but they’re not the only option in the healthcare sector. Diversifying your investments can help you manage risk better. Healthcare stocks offer a broader range of opportunities and can be a great addition to your portfolio. For a deeper look into the potential of healthcare stocks, check out my watchlist on Healthcare Stocks.

How Do Biotech Penny Stocks Work?

Biotech penny stocks operate in the high-stakes arena of medical research and development. These stocks represent companies that are often in the process of testing new drugs or medical devices. The success or failure of these tests can dramatically affect the stock price. Positive results in clinical trials can lead to significant price spikes, while negative outcomes can cause sharp declines.

Risks of Investing in Biotech Penny Stocks

First of all — never invest in any penny stock. You only want to be trading these stocks… here’s why…

You’ll need to understand the ins and outs of penny stocks if you’re gonna survive in this niche. Penny stocks can offer significant growth potential at a lower cost — but you NEED to know the warning signs that tell you when things are about to go sideways.

Check out my overall Penny Stocks Watchist for a better idea of what I look for — and the dangers I guard against…

Higher Failure Rates

Biotech companies often have higher failure rates, especially when it comes to clinical trials. If a drug doesn’t get the approval or shows poor trial results, share prices can tank.

Regulatory Uncertainties

The biotech sector is heavily regulated. Companies need to go through multiple phases of clinical trials before they can bring a product to market. Any hiccup in this process can be disastrous for the stock price.

Limited Financial Resources

Many biotech penny stocks have limited financial resources. They’re often dependent on investor funding, and if the money dries up, the company will dilute its shares.

Top Tips for Buying Biotech Penny Stocks

When it comes to biotech penny stocks, you’ve got to be on your A-game. You need to analyze everything from clinical trial results to market cap.

Here are my top tips beyond the numbers and data!

• People make a company go. Understand the management team behind the company and their track record.
• You need a reliable trading platform that gives you quick access to the market. Your account should offer robust securities to protect your investment. And speaking of investments, always consider the value of the stock against its potential growth and revenue. Don’t just listen to brokers who might be pushing their own picks.
• Patients are the end-users of biotech products, so pay attention to patient response during clinical trials. This could be a good indicator of the stock’s future value. But remember, you’re not a medical expert. Always read the disclaimer before making any moves.
• In the biotech world, every “cell” counts, literally. Sales growth can be a good indicator, but it’s not everything. Look at the overall revenue and how it’s trending.
• Just like in any penny stock, don’t underestimate the power of a ticker symbol. Traders
• And of course — do your due diligence and make informed decisions!

Research the Company

Before you invest in biotech penny stocks, research the pharmaceutical companies behind the stocks. Look at their pipeline, check their financials, and read up on their management team. The more information you have, the better your chances of making a profitable trade.

Understand How You Are Going to Trade

Are you looking for quick gains, or are you in it for the long haul? Understanding your trading strategy will help you pick the right stocks.

Look into the Biotech Industry

Understanding the biotech industry as a whole will give you a better perspective on individual stocks. Keep an eye on growth trends, breakthrough therapies on “big-name” diseases like Alzheimer’s disease, and upcoming IPOs.

Never Believe in OTC/Pink Sheet-Listed Penny Stocks

Over-the-counter (OTC) and pink sheet stocks are not subject to the same regulatory oversight as stocks listed on major exchanges. They’re riskier and more susceptible to manipulation.

Trade Promotional Pumps Carefully

Be wary of stocks that are being heavily promoted in the media or online forums. These are often pump-and-dump schemes designed to inflate the stock price.

Only Trade Penny Stocks with Volume

Look for stocks with high trading volume. Low volume stocks are more susceptible to price manipulation.

Understand the Hit and Run Approach

In the world of biotech penny stocks, it’s often better to be a trader than an investor. Take your profits and move on to the next opportunity.

How To Make Money in Biotech Stocks

The key to making money in biotech stocks is research, timing, and a solid trading plan. I’ve been trading these stocks for years, and while they’re risky, they offer some of the best opportunities for high returns. But remember, always trade with money you can afford to lose.

Once you’ve gained some experience, you might start thinking about day trading as more than just a hobby. It’s a significant step, requiring a different level of commitment and strategy. If you’re considering this path, you’ll need to understand the nuances that come with making day trading your primary income source. For a comprehensive guide on how to make this transition, here’s how to day trade for a living.

Have you traded biotech penny stocks? Write “I always trade with a plan” in the comments!

FAQs

How Do I Invest in Biotech Stocks?

Investing in biotech stocks starts with research. Look for companies with promising pipelines, strong financials, and experienced management teams.

Why Do Investors Buy Penny Stocks?

Investors buy penny stocks for the potential of high returns. These low-priced stocks offer an opportunity for significant profits, but they come with higher risks.

How To Avoid Penny Stock Risk?

The best way to avoid penny stock risk is through research and due diligence. Understand the company you’re investing in, the risks involved, and have a clear trading strategy.