BALTIMORE ( Stockpickr) -- No doubt about it: Traders love low-priced stocks.
I'll let you in on a little secret: Share price doesn't really have an impact on your potential investment gains. At least not directly.
But indirectly, it's true that lower-priced stocks also tend to have lower market capitalizations, a fact that makes them statistically more volatile -- and more apt to make noticeable price moves. That, coupled with the psychological effects of buying sub-$10 stocks makes them worth taking a closer look at.That's especially true after the 24% rally that we've seen in the S&P 500. Since smaller, more speculative names tend to see their most impressive gains after the more staid blue-chips have already made their moves, now is a very good time to take a closer look at stocks that trade for $10 or less. So, today, we're taking a closer technical look at five of them. >>5 Stocks Ready to Break Out This Month If you're new to technical analysis, here's the executive summary. Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time. >>Buy These 5 REITs to Cash In This Year Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five high-volume stocks to trade this week.