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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.
Just take a look at some of the hot movers in the under-$10 complex from Thursday, including
KIOR), which is skyrocketing higher by 57%;
NEWL), which is soaring by 40%;
FREE), which is ripping higher by 30%; and
Perma-Fix Environmental Services (
PESI), which is spiking higher by 15%. 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 skyrocketed higher was biopharmaceutical player
ONTY), which I highlighted in Sept. 19's "
5 Stocks Under $10 Set to Soar" at $1.85 per share. I mentioned in that piece that shares of ONTY were starting to find some buying interest right above its 50-day moving average of $1.73 a share. That buying interest was starting to push shares of ONTY within range of triggering a big breakout trade above some near-term overhead resistance levels at $1.93 to $1.98 a share.
Guess what happened? Shares of ONTY gapped up sharply on Wednesday with monster upside volume. That move took the stock above all of those resistance levels and shares of ONTY tagged an intraday high of $2.43 a share. That represents a quick gain of just over 30% for anyone who anticipated that breakout and bought the stock ahead of Wednesday's action.
>>5 Stocks With Big Insider Buying
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.
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.
>>5 Bargain Bin Stocks to Buy This Fall
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.