WINDERMERE, Fla. ( Stockpickr) -- There isn't a day that goes by on Wall Street when ceratin 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 in the under-$10 complex from Wednesday, including Cadiz (CDZI), which soared by 40%; Silicon Image (SIMG), which skyrocketed by 22.4%; MeetMe (MEET), which surged by 16.9%; and Merge Healthcare (MRGE), which finished up 11.1%. 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.