You only lose money when you sell. If you didn't buy on margin (and most companies will not let you buy pennies on margin) you can watch the paper losses, but they will not turn into reality until you hit that button.
When I first bought FHAL, at .25c average, it dropped to .14c a day or two later. I was down over 15K,and I admit I almost panicked. Itsmike kept telling me to get off the ledge.
However, especially with small volatile stocks like this one, a massive sell off (on light volume, I should note) will result in a bounce. You can ask any of the experienced traders here.
I am still trying to get the details on what RUfus said, as I couldn't listen to his interview. One of my friends, who is in this too, told me she couldn't understand what the panic selling was about...that it's probably a misunderstanding.
I need to verify that for myself....the misunderstanding and the reality of what the merger details will be.
However, I know on paper it looks bad...but I have a suggestion. Write Kapone, who is a very experienced trader, or visit a guy called "the munchkin man" on Morningstar board. He specializes in penny stocks for years. Ask either of those people what they would do.
Never act in panic or fear. Talk to a few more experienced people. Personally, I will lose too much if I sell right now, and I have seen too often where a stock bounces back right after a panic sell. The date of the merger completion is right around the corner.
As you have resigned yourself to losing money...what is the harm in waiting until a few more facts are clarified, or the merger date is complete. You might end up pleasantly surprised.
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If you take anything I say as advice, then you're crazier than I am
AI
