Shorting Penny Stocks...?

Discussion in 'Trading' started by zfmt, Oct 21, 2011.

  1. zfmt


    I've been hearing from a bunch of people that it's a big 'no no' to short penny stocks.

    He's the situation. I know (with 85% certainty) that the price of a penny stock that has risen is about to fall hard. Like drop by about 20 - 40%.

    Why wouldn't I short that penny stock? I'm new to this and everyone I meet in RL says never to short penny stocks. They just never say why. Do you know what they're talking about?