Is it a good idea to buy penny or OTC stocks as a beginner?

For beginner investors who are getting accustomed to the overall financial markets, it might be a good idea to trade penny or over-the-counter (OTC) stocks.

However, as a long-term investment, it is not wise to pour enormous sums of capital in a ticker in the pink sheets system. They have low trading volumes, minimal liquidity, and lackluster market capitalization. This means they are prone to pump-and-dump schemes.

Since there are many zero-commission trading platforms, there is very little risk to put a couple of hundred dollars in one of these stocks.

So, what should you buy?

There are perhaps only a handful of penny stocks with some terrific upside that should be on your radar:

• Green Organic Dutchman Holdings Ltd (TGOD)
• Ceragon Networks Ltd. (CRNT)
• Kodiak Copper Corp (KDK)
• Kaixan Auto Holdings (KXIN)