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5 Stocks Under $10 Setting Up to Trade Higher

Stocks in this article: PRMWAVNRSCOKORNMDWANX

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 Rebounds

When 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.

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