DELAFIELD, Wis. (Stockpickr) -- Every day on Wall Street, individual stocks trading for $10 a share experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sod risk management are banking ridiculous coin on a regular basis.
Just take a look at some of the large movers in the under-$10 complex from Wednesday, including Fate Therapeutics (FATE), which exploded higher by 45.4%; Plasmatech Biopharmaceuticals (PTBI), which soared higher by 44%; Synthesis Energy Systems (SYMX), which ripped higher by 30.2%; and MagneGas (MNGA), which blew up by 29.6%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.
Low-priced stocks are something that I tweet about on a regular basis. I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher. These setups often produce monster moves higher in very short time frames.
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.