WINDERMERE, Fla. (Stockpickr) -- Stocks trading under $10 a share make huge spikes higher every day. Those traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous amounts of money on a regular basis.
Just take a look at some of the huge moves today in some under-$10 names, including Transcept Pharmaceuticals (TSPT) ,up over 90%; SRI/Surgical Express (STRC), up over 25%; Pro-Dex (PDEX), spiking over 18%; and Newcastle Investment (NCT), up over 18%. You don't even have to catch the entire move in lower-priced stocks such as these to bank solid coin when trading.
I'm not as eager to recommend investing long term in stocks that trade for less than $10 a share because these names can be very speculative, and the odds of picking the long-term winners aren't great. But I absolutely love to trade stocks under $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when played right.
Related: 5 Loser Stocks Poised for ReboundsWhen I trade under-$10 names, I do it almost entirely based off of their charts and technical analysis. I also like to find under-$10 names with catalysts, but that's secondary to chart and volume patterns. A great example of this was my trading call on last Friday with Adventrx Pharmaceuticals (ANX), which I highlighted for a breakout trade above $1.21 a share. This week, the stock took out that level and quickly hit $1.40 a share for a close-to-20% gain in just a few days. You're just not going to find higher-priced stocks that move that big on such a consistent basis. With that in mind, heere's a look at a number of under-$10 stocks that look poised to trade higher from current levels.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV