Re: Penny Stocks
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Ignorance alert: I have little to no knowledge of the markets.
If buying penny stocks is generally an awful idea, would shorting them not generally be a good idea?
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I thought you can't short a penny stock
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It's possible. My broker won't do it, but you could probably find a broker who would. But they have to find shares to borrow so you can short them, and that could be almost impossible with most penny stocks.
But even if you could shorting penny stocks is very foolish. If you short a piece of junk trading at 10 cents and one day it shoots up to 75 cents because of a spam pump n dump scheme, you are now down over six times your investment. And if you shorted a good amount of shares your broker will quickly start liquidating your account to pay that debt.
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