[mage lang="" source="flickr"]penny stocks trading[/mage]
Since most people lose money rather than gain money trading penny stocks, would short selling put the odds in your favor?
You can’t short trade penny stocks. There’s a price minimum on shorts (depends on the market but you’ll find its around $3 in North America), in addition to the usual maximum short ratios in order to prevent manipulation. No broker would allow this short either, think of the margin adjustments neccessary. Whereas the idea of say a 1000% jump is a hypothetical in terms of a dow jones company, there is a legitimate risk of a penny stock going up a dime on bullish news.