Damn, knew I should have grabbed LFIN or RIOT after hours yesterday with the Bitcoin recovery 
To expand a bit further, what I meant is that OTC is basically bottom of the barrel when it comes to stocks. Essentially the exchange the stock trades on determines how much accounting disclosure/auditing a company is subject to. NYSE/Nasdaq > OTCBB > OTC. OTC is considered pink sheets and is subject to very little disclosure, which makes the likelihood of a scam/pump and dump much more likely.
On my other point regarding liquidity, is some of these stocks are only trading a few tens or hundreds of thousand shares per day. This isnt as a big a deal when that quantity still represents a high amount of money flowing through the stock, but when it represents only a few tens of thousands of dollars, it makes it much harder to get out of the stock when needed.
When I started trading, I was all about penny stocks cause of the percentages they moved. I got burned on a few and realized what the game was. Hope you do the same

To expand a bit further, what I meant is that OTC is basically bottom of the barrel when it comes to stocks. Essentially the exchange the stock trades on determines how much accounting disclosure/auditing a company is subject to. NYSE/Nasdaq > OTCBB > OTC. OTC is considered pink sheets and is subject to very little disclosure, which makes the likelihood of a scam/pump and dump much more likely.
On my other point regarding liquidity, is some of these stocks are only trading a few tens or hundreds of thousand shares per day. This isnt as a big a deal when that quantity still represents a high amount of money flowing through the stock, but when it represents only a few tens of thousands of dollars, it makes it much harder to get out of the stock when needed.
When I started trading, I was all about penny stocks cause of the percentages they moved. I got burned on a few and realized what the game was. Hope you do the same
