Penny Stocks Common Mistakes

I found a great post on common mistakes among investors and it's so well done that it should be applied to all stock investing including penny stocks. We posted a comment to this blog because we really thought there was a key rule missing.

Don't Buy Stories. If You Want to Buy a Story, Buy a Book

Here's the rest of the rules.

The first and biggest mistake is not to admit making a mistake

Buy on tips and khabars and wanting to make a quick buck

Buying a loser on its way down thinking you are averaging your costs

Ignoring Risk in the investment and looking only at the returns

Buying penny stocks thinking they are cheaper and ignoring stocks, which are priced above a certain number like Rs. 1000 thinking, they are expensive

Exiting Winners early and sticking to Losers

Just thinking but not doing anything (And of course, this one is a life lesson)