The Ultimate Guide: Short Selling Penny Stocks by Justin Bostwick - HTML preview

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Cut Losses

I can't stress this enough! Whenever a stock goes against you, in our case (goes up) instead of going down it's in your best interest to cut your losses quick! If you do not cut your losses quick you will be vulnerable to getting juiced. I've seen it time and time again where traders let there emotions get in the way and wind up losing tons and tons of money because they refuse to think that they were wrong, or refuse to take their loss thinking that it will in fact come back down and they'll get their money back. To avoid all of this it's best to just cut your losses quick and move on when the trend goes against you.