Avoid Making This Beginning Investor Mistake!

Beginning Investors should learn from my experience to avoid this investing mistake.
When I first started investing on my own, I started with penny stocks.

I thought if I bought something cheap it would be a good way to learn how to invest without risking a lot of money.

I also thought I might be able to pick a winner and I would be one of the lucky ones that got in early!

Well I bought $100 worth of this one penny stock for about $2/share and guess what? I promptly lost all my money!

That little $100 experiment taught me a lot about penny stocks very quickly.
Low price = High risk
Since the companies aren’t well known, penny stocks can be hard to sell, especially when the price is going down
I would have done better just by playing a scratch off.
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[MarkPoserina-xjft]

Penny stocks are cheap for a reason. Either the company has no value, no revenue, or earnings potential.

Take that $200 and buy SPY or a blue chip stock at a fair price.

You can’t make it fast. It’s a slow climb up to the top of the mountain. Even if you get rich quick, it won’t last long.