First a WARNING... A STRICT WARNING - I would sincerely advise you all against investing in penny stocks. Do not invest in Penny Stocks if you do not have good knowledge. One of the basic rules of buying stocks is to consider 'value'; not 'price'. But when the starting point itself is price, you are committing one of the fundamental investment mistakes. Unfortunately, however, the gambling instinct in humans is very strong. So despite knowing the risks involved and all sorts of warnings, people do get attracted to penny stocks. The lure of hitting a jackpot is simply irresistible.So I decided to present five simple rules when investing in penny stocks. If you choose to ignore my warning, kindly at least remember these rules.
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