How to Short Penny Stocks [Infographic]

Short selling is an investing strategy that involves borrowing shares from a broker and selling them for a profit. If an investor speculates that a security price will drop, taking a short position can be profitable. There are distinct patterns that identify these opportunities. Do you know how to turn these into profits?

I created this infographic as an introduction to short selling penny stocks since betting against worthless or near worthless companies at inflated prices has made my top trading challenge students and I millionaires. Click the image below to view.

Download a PDF version of this post.

<i>Click image to see a larger version</i></br><a href=”https://www.timothysykes.com/blog/how-to-short-penny-stocks-infographic”><img alt=”How to Short Penny Stocks Infographic” src=”https://www.timothysykes.com/wp-content/uploads/2014/07/How-to-Short-Penny-Stocks-1.0-01.png” alt=”How to Short Penny Stocks Infographic” width=”540″ />How to Short Penny Stocks Infographic</a> via <a href=”https://www.timothysykes.com”>Timothy Sykes</a>

Conclusion:

You can in fact make money off of shares you don’t actually own. Short selling a stock that you believe will drop in price has risk, but if you look closely and learn to identify the trends and recognize the pump, huge opportunity exists in shorting penny stocks.