Make Money Shorting Penny Stocks. In essence, you're making money without ever owning the shares. Penny stocks are volatile and can generate catastrophic losses.
They can go up in a short period of time with substantial percentage gains, but after any fast rise, most fall back low or lower than they were. It's now more important than ever for investors to do their due diligence before they make a purchase. Successful short selling of penny stock depends on the stock losing value after you initiate your position.
The idea is to make the investor aware of the potential risk associated with the stock, the possible customer rights ad penny-stock related norms that might be handy eventually.
You don't realize any profits until you close your position.
Can you make money in penny stocks? The question itself is most likely as old as the idea of learning how to buy penny stocks. You will learn how to short sell penny stocks for huge profits.