5 Stocks Under $10 Set to Soar

WINDERMERE, Fla. (Stockpickr) -- There isn't a day that goes by on Wall Street that 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 Ocean Power Technologies (OPTT), which skyrocketed by 70%; Complete Genomics (GNOM), which ripped to the upside by 42%; Amyris (AMRS), which traded up 18%; and SkyWest (SKYW), which closed up 14%. 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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I highlighted Ocean Power Technologies in "7 Stocks Under $10 With Relative Strength" for its bullish price action when it was trading at just $2.20 a share. I also recently flagged SkyWest in another 5 stocks under $10 set to soar article, well before it made that monster move higher on Wednesday.

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.