Why Shorting a Penny Stock Is a Bad Idea

If you play Motley Fool CAPS, you might be forgiven for thinking that CAPS stands for "crush all penny stocks." What is CAPS? It's this amazing free tool at the Motley Fool. It works like this: You pick stocks that you think will beat the market. And the CAPS software measures how your stock pick does versus the S&P 500.

Almost 60,000 Fools have been playing CAPS for almost 15 years now. One of the things that CAPS has taught me is that if you buy and hold fast-growing innovative companies (i.e. Rule Breakers), you'll be wrong a lot. But your winners will absolutely kill the market, and overall you will, too. So definitely you should play CAPS, and test your stock calls against those of all the others in the Fool universe.

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Source Fool.com