Why sell into an up-move? To make $$
Mutliple studies have shown the smallest-of-small retail investors are attracted to penny stocks. Some even manage to get onboard a rocket-ship, only to lose lots of money when it turns against them.
Why didn't they take some off the table when it went their way?
Regardless of your entry method, IF you're LUCKY ENOUGH that something goes your way, execute scale-out sells into the ramp. Dump what's remaining before you give it all back.
According to the SEC's 2016 white paper, retired, low income and less-educated investors fared the worst with penny stocks. The agency analyzed 1.8 million trades by 200,000 investors, finding that the typical return is "severely negative."