Great Wall Builders (fka GWBU)

[mb2005]

You short 100 shares at let's say $2. Your account is credited $200 minus commissions and you have a short position that you will eventually have to cover, voluntarily or invol. You buy back the shares at $1 (cover) and they go back to the broker and you pocket the difference ($100). Minus commission of course. When shorting, you can only make what you've put into it because a stock cannot drop past . The risky part of shorting is the short squeeze and having to cover when you're in the red. Penny stocks can be risky when shorting because they are easily manipulated. Promoters can pump the stock when the short % of float is high and cause shorts to panic and cover vol or invol causing the price to go up even higher. you can easily be in the hole several times over of you make a bad play so the best way is to not get too greedy and take profits when you can.