Those looking to get started with penny stocks often suffer from imposter syndrome.
That is, they don’t feel like they’re in the skin of the investor. Despite having all the tools, knowledge and potential wealth right in front of them, they just don’t know if they’re on the right path with their penny stocks. This ultimately leads to doubts and various assumptions that keep would-be success stories from coming true.
Casting doubt from your mind might be easier said than done; however, it’s essential to keeping yourself on the course to seeing a positive ROI for your trades. Outlined below are three major mental traps and assumptions that face every penny stock newbie which need to be addressed sooner rather than later.
You Don’t Have Enough Cash to Invest
Perhaps the biggest draw of penny stocks is pretty straightforward: such trades ultimately keep more money in your pocket and allow you to experiment versus pricier stocks. That said, many new traders feel that they just need to throw more and more cash at bad trades and then blame their own wallets for the lack of success.