The reason for this is because most people do not realize that the OTC Markets (OTCBB and Pinksheets exchanges) list some of the worlds worst companies.
Some of these companies are straight up scams like the ones from the movie Boiler Room which was modeled after the true story of Jordan Belfort who was called The Wolf Of Wall Street.
This guy was involved in trading pump and dumps in the 1990′s and made 0 million dollars in the stock market.
How To Buy Penny Stocks
He later went to jail and lost everything, but the same scamsters and con artists that were involved in the penny stock market during Jordan Belforts reign, are still involved today on a different level.
Never the less it is possible to earn a profit in this market legally today if you know about advanced technical analysis and chart reading and have a technical trading system for timing the market.
You must learn who the key players behind the scenes are and how you can trade on the same side as these people or institutions such as hedge funds, market makers, and stock promoters.
The only way to make money in these stocks, unless you get incredibly lucky just like winning the lottery or winning k on a scratch ticket, is to learn to trade penny stocks.
When I say trading what I mean is buying the type of stocks and then selling them within a few hours or a couple days at most. The reason that this is so important is that the liquidity in the penny stock market is very low in general.