DELAFIELD, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 per 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 Tianli Agritech (OINK), which is skyrocketing higher by 31%; Ascent Solar Technologies (ASTI), which is soaring by 21%; Houston American Energy (HUSA), which is ripping higher by 12.7%; and Golden Star Resources (GSS), which is spiking higher by 11.6%. 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 soared higher was alternative energy player China Ming Yang Wind Power (MY), which I highlighted in Sept. 19's "5 Stocks Under $10 Set to Soar" at $1.74 per share. I mentioned in that piece that shares of China Ming Yang Wind Power were uptrending strong for the last two months, with shares soaring higher from its low of $1.48 to its recent high of $1.92 a share. That move was quickly pushing shares of MY within range of triggering a major breakout trade above some near-term overhead resistance levels at $1.78 to $1.92 a share.Guess what happened? Shares of China Ming Yang Wind Power didn't take long to trigger that breakout, since the stock took out those key resistance levels the following week with monster upside volume. This stock has exploded to the upside with shares making a new 52-week high today at $2.88 a share. That represents a gain of over 60% in just a couple of weeks for anyone who played this breakout. You can see here that when breakouts trigger with volume a stock can make a very explosive move in a relatively short timeframe. >>5 Stocks Insiders Love Right Now 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. >>4 Stocks Rising on Big Volume 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 stocks trading for $10 or less that look poised to potentially trade higher from current levels.
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