This column was originally published on RealMoney on March 7 at 12:00 p.m. EST. It's being republished as a bonus for TheStreet.com readers.Back in the mid-'90s, my online buddies and I formed an alliance we called the Amextadors. Almost every position we bought or sold was a single-digit dog listed on the American Stock Exchange. We loved our secret club and the market niche we had found. Back then, my favorite Amex stock was Greyhound, a $3 lottery ticket emerging from bankruptcy. There were 1,000-share lots on Computervision, an ill-fated company that went south right out of the IPO gate, and I'll never forget the endless short sales on Griffin Gaming, Merv's seesaw venture with Resorts International. Indeed, big profits can come in small packages. Though many traders focus on high-priced stocks, lower-priced issues can offer great opportunities. The trick is to keep transaction costs low, trade the right number of shares and pick entry points wisely. The greatest advantage in trading single-digit stocks lies in the crowd playing them: Retail traders usually guide price movement on these issues, rather than institutions or hedge funds. This adds an element of predictability that's lacking in other speculative arenas.
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