There isn’t a day that goes by on Wall Street when certain stocks trading for 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 sod risk management are banking ridiculous coin on a regular basis.
Just take a look at some of the big movers to the upside in the under-$10 complex from Wednesday, including EnerJex Resources (ENRJ) , which soared higher by 32.5%; Joe’s Jeans (JOEZ) , which ripped higher by 23.6%; Entree Gold (EGI) , which spiked higher by 23%; and Alexco Resource (AXU – Get Report) , which jumped higher by 20.5%. 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 often. 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.
Source: The Street