
I am also noticing a massive spike of penny stock trading driven almost entirely by retail speculation. OTC and microcap trading has surged dramatically by 47.4% in 2025. Institutions largely stay away from microcap names because of razor-thin liquidity and heavy manipulation.
This is because influencers and YouTubers with millions of followers are promoting ideas (wrongly) that momentum day-trading strategies in volatile small-cap and penny stocks is an easy way to make money. Most day traders lose money due to fees, slippage, emotional trading, market makers, promoters, liquidity. The overwhelming majority (90%+ annually) lose:

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