WINDERMERE, Fla. ( Stockpickr) -- There isn't a day that goes by on Wall Street when 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 Cyclacel Pharmaceuticals (CYCC), which exploded higher by 27%; Achillion Pharmaceuticals (ACHN), which soared by 26%; Groupon (GRPN), which ripped higher by 13%; and Zogenix (ZGNX), which finished up 11%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.
A low-priced stock that I recently flagged that went on to skyrocket to the upside was BioFuel Energy (BIOF). I highlighted BIOF in my Aug. 2 " 5 Stocks Under $10 Ready to Soar Higher" article at around $3.30 a share. I mentioned that BIOF was starting to reverse its downtrend and large upside volume was starting to move into the stock. I also highlighted how BIOF was setting up to trigger a near-term breakout trade above $3.39 to $3.75 a share.
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