Penny stock trade booms

|By:, SA News Editor

"I like things below three cents, because of the upside potential, and it limits the downside," says penny stock trader Steve Templeton, who recently used his winnings on unlisted medical marijuana stocks to finance a move to Tennessee from California.

Average monthly trading volume at OTC Markets Group (OTCM) - which handles trading in unlisted stocks - is up 40% in dollar terms this year to $23.5B, and traffic on penny-stock trader forum InvestorsHub doubled between Christmas and last month. Clem Chambers, head of the company that runs the forum, says most of the increase is from longtime existing members whose interest has been renewed.

"A lot of these people, who were looking from afar, are coming back ... It feels like somebody pulled a switch."