If you show a bully it bothers you, it will get worse. I've had to stand up to my fair share of people, I don't really care about what people say about me.
Usually telling them you aren't scared of them will make them back off, and if they get physical, get your group of friends and then they're outnumbered :).
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Bullying
Non-FictionTip Number 1: A smile to a stranger can change their life. Tip Number 2: Another thing that can change their life; bullying.