WINDERMERE, Fla. ( Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading near or under $10 a share 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 today in the under-$10 arena, including Affymax ( AFFY), exploding up over 40%; Ever-Glory International ( EVK), ripping over 33%; Central European Distribution ( CEDC), ripping higher by 25%; and Pacific Sunwear ( PSUN), up 15%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading. Pacific Sunwear is a name I just featured on Wednesday in " 5 Earnings Stocks to Squeeze the Bears." At one point today, PSUN was up as high as $1.93 a share. >>5 Big Stocks to Trade for Gains 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. 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. Here 's a look at a number of under-$10 stocks that look poised to trade higher from current levels.
2012 Stock Predictions and Outlook
|Your one-stop shop for 2012 stock recommendations and market predictions. |
Clean Diesel Technologies
Twitter and become a fan on Facebook.