Investing - Thou shall nots!
I have made many mistakes in investing and I want to record my mistakes so that I will have to ensure I do not repeat mistakes twice.
Therefore, though shall not,
- Invest in a stock on the basis of stock price movement (MXP: I did this with this oil company - Max Petroleum - and although it is probably quite good, I should have noticed so many sellers from the RNS’s. The company was suspended soon after. Also, PDX, its one of those stock with great prospects but no revenue - cannot beleive I invested in that - I exited soon after, but lost money.)
- Ensure I have produced an analysis and financial estimate on the stock. I recently invested in quite a few without doing this as I got carried away. I must always do this as it points out growth prospects and communicates if something is already a fair price. Cause I want unfair prices on the low side!)
- Do not buy when stocks are expensive - I bought some of the miners eg BHP and Vedanta, but they were pretty expensive and everybody likes them - I exited with a small loss soon after.
I will be keeping this list up to date and I will commit to refering and following it everytime I buy a stock!