5 Stocks Under $10 Set to Soar

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 in the under-$10 complex from Wednesday, including Entropic Communications ( ENTR), which skyrocketed by 30%; Nanosphere ( NSPH), which soared 21%; Orexigen Therapeutics ( OREX), which ripped higher by 20%; and Brightpoint ( CELL), which finished up 16%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

>>5 Big Stocks Ready to Slingshot Higher

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.

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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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