WINDERMERE, Fla. ( Stockpickr) -- There isn't a day that goes by on Wall Street when we don't see examples of stocks trading near or under $10 a share don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.
Just take a look at some of the hot movers today in the under-$10 complex, including DynaVox (DVOX), ripping over 30%; SMTC (SMTX), jumping over 20%; CryptoLogic (CRYP), soaring close to 15%; and Flotek Industries (FTK - Get Report) adding over 15%. (I predicted Flotek's move in " 5 Earnings Stocks Poised to Pop.") You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.
I'm not as eager to recommend investing long-term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right.When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns. Here's a look at a number of under-$10 stocks that look poised to potentially trade higher from current levels.