Your worst rookie error?

Investing and Markets 📈
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What do you think of penny stocks? I’ve got my eyes on some AIMs with great balance sheets and growth that I’m tempted by.

It’s a lot of fun, but it seems very random to a point where I wonder what is manipulating the stock price - pump and dumping or large put calls maybe? A stock going up and down ~70% over literally no news or information seems very odd - or maybe I am just naive. Either way a lot of fun if you catch it right.

I have also done the same with AIM growth stocks. I made a good amount with PRSM, KWS and FEVR however have lost considerably on SXX. For penny stocks I mainly look at US stocks on the NASDAQ or NYSE. Check out this sub reddit for some interesting further reading Reddit - Dive into anything

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45

The perennial AIM favourite Sound Energy took a caning yesterday.

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I bought Stone Co just after the IPO ($30 a share) without doing any fundamental analysis of the company after reading that Buffet and Jack Ma had bought.

Consequently I sold in March just after 10Q Q1 2019 was released and realised it had a PE 100 and NPV was about half the share price.

If you buy shares off someones recommendation (including legendary investors) you’ll have no conviction in your decision if the price falls.

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