The stocks that we talk about in Penny Hawk are all under $10. Typically, cheaper stocks tend to make bigger moves. Think about it – for a $0.10 stock to double, it only has to gain 10 cents. But for a $50 stock to double, it has to gain $50. 10-cent swings happen all the time. $50 swings, not so much.
Because these stocks are cheaper, big price swings are more common. And in order to make money on a stock, it has to move.