Back to all cash, at least I can say principle is safe, but profits almost all out the window 
Life Is Short
- Thread starter realtrades
- Start date
Shorted PEIX on Wednesday, a stock that was trading for 22 cents just 6 months ago, had so many opportunities along the way to take a small to medium loss, but was stubborn, I wanted to be right about this trade, so I did not close it, even early Friday I had an out, then came the squeeze, and I got auto liquidated on partial, and it kept going, another auto liquidation was coming, so that's when I just closed it for a total loss of -$1,421, right after closing I re shorted, covered for a small win +$116, so a total loss on the day of -$1,305, and a total weekly loss of -$2,011, absolute disaster.
Easy come, easy go
Sorry to see that, man.
Shorting penny stocks is very hard and risky for the reasons you’ve experienced.
From my experience, there are times/periods when shoring works most of the time, while other times going long works more often. Though the biggest risk are outliers that can shoot up wiping out all profits or accounts.
A way of dealing with this may be to short only small qties of multiple penny stocks, so that one loser won’t matter as much. This may seem difficult with small account, but potentially could work if you don’t pay minimum commissions like $1/trade. Basically consider shorting 20 different stocks at $50 each, vs one at $1K. It may seem difficult but can work great with some practice. You also won’t need to be very accurate with each trade, so can find more trades to enter while improving the strategy on the go. You may sleep way better as well
Shorting penny stocks is very hard and risky for the reasons you’ve experienced.
From my experience, there are times/periods when shoring works most of the time, while other times going long works more often. Though the biggest risk are outliers that can shoot up wiping out all profits or accounts.
A way of dealing with this may be to short only small qties of multiple penny stocks, so that one loser won’t matter as much. This may seem difficult with small account, but potentially could work if you don’t pay minimum commissions like $1/trade. Basically consider shorting 20 different stocks at $50 each, vs one at $1K. It may seem difficult but can work great with some practice. You also won’t need to be very accurate with each trade, so can find more trades to enter while improving the strategy on the go. You may sleep way better as well
Shorted VXRT too early, got squeezed for a loss of -$354. At least I cut the loss rather than let it grow 
, only to watch it reverse back down. 
What a great short it would have been if I had waited. First time with two red days in a row. NTN was the short from heaven, but there were no borrows.
Have to get back to green tomorrow, cutting into principle now, don't want these losses to snowball.
, only to watch it reverse back down. What a great short it would have been if I had waited. First time with two red days in a row. NTN was the short from heaven, but there were no borrows.Have to get back to green tomorrow, cutting into principle now, don't want these losses to snowball.
Lunch time trade, shorted RENN which is up 115% over the past 5 days, should have never taken the trade, the volume was not there, just stared at it going sideways, took the small loss for a change -$55, losing streak continues, 3 days now
Good thing I covered 
OMG!!!! shorted AMBO and the rug got pulled, now halted, Unhalt this so I can get paid!!!!!!!!!!!!!!!!!!!
Just my luck, stuck on halt when my account is up 25% on the day.
And it was too good to be true, opens up higher, just my luck.