DELAFIELD, Wis. ( Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less 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.
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Just take a look at some of the hot movers in the under-$10 complex from Wednesday, including
), which skyrocketed higher by 82.5%;
NF Energy Saving
), which soared higher by 37.9%;
), which ripped higher by 20.4%; and
), which jumped higher by 18.3%. 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 recently exploded higher was biotechnology player
), which I highlighted in July 17's "
5 Stocks Under $10 Set to Soar
" at around $6.80 per share. I mentioned in that piece that shares of ANAC were uptrending for the last two months, with the stock pushing higher from its low of $4.83 to its high at that time of $6.93 a share. That move was quickly pushing ANAC within range of triggering a near-term breakout trade above some key resistance levels at $6.93 to $7.09 a share.
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Guess what happened? Shares of ANAC triggered that breakout a few trading sessions later and it never looked back. This stock is on fire today, with shares hitting an intraday high of $10.40 a share, which represents a huge gain of 45% in a very short timeframe. Anyone who played that breakout banked some serious coin, since shares of ANAC uptrended strong once those key breakout levels were taken out. This is why breakout trading is so powerful, because once key resistances levels are taken out you can get a huge move.
Low-priced stocks are something that I
tweet about on a regular basis.
I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher. These setups often produce monster moves higher in very short time frames.
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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
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.
With that in mind, here's a look at
several under-$10 stocks that look poised to potentially trade higher from current levels.