One of the most consistent mistakes a significant minority of inexperienced investors make is being drawn to a type of common stock known as penny stocks. At first glance, the reasons for this (ultimately dangerous) appeal are legion but almost always come down to the fact that penny stocks appear to fluctuate tremendously in price, which, they convince themselves, should lead to an opportunity to generate a very high return quickly.

Unfortunately, as with all things in life, the truth is not quite so simple. In fact, it often turns out to be precisely the opposite as penny stocks can wipe out your savings in the blink of an eye… Read Full Article