WINDERMERE, Fla. ( Stockpickr) -- There isn't a day that goes by on Wall Street that certain 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 Novacopper (NCQ), which skyrocketed higher by 33%; Key Tronic (KTCC), which surged higher by 24%; Telik (TELK), which moved up 14%; and Synacor (SYNC), which closed up 10.3%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.
One low-priced stock that I recently flagged that went on to soar higher was Catalyst Pharmaceutical Partners (CPRX). On Friday, I highlighted CPRX in " 5 Stocks Poised for Breakouts" at around $1.40 a share. I liked the way that CPRX was uptrending, and I saw the potential for a big breakout. I suggested buying the stock off weakness and anticipating that move.
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