5 Stocks Under $10 Set to Soar

WINDERMERE, Fla. ( Stockpickr) -- There isn't a day that goes by on Wall Street where 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 in the under-$10 complex from Wednesday, including Gevo ( GEVO), which skyrocketed higher by 30%; James River Coal ( JRCC), which surged 27%; Medgenics ( MGDN), which ripped higher by 25%; and ValueVision ( VVTV), which closed up 17%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

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Gevo happens to be a name I recently flagged at around $5.40 a share as one of five potential breakout trades. Shares of GEVO hit a high of $9.44 on Wednesday after that breakout triggered in spades.

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.

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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.

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