Everybody do some mistake in their life. There are people who will admit them and others that will never admit them and make these mistakes again and again. I am one of the first kind so yes I’ve made mistakes in my investment and in my life, but I learned from them. This post will focus on the investment mistake since I have already posted about some of my life mistake I’ve made like the post about wasting money drinking and eating out.
Not following my investment plan
First of all, my first mistake was not following my investment plan. In 2016, I’ve started a Canadian Couch potato plan and shifted it to a dividends investing to a penny stock investment. This is way too much change for a year and I was trying to get rich quick and this almost never happens. So now, I am back to the dividends investing and I will stick to that.
Emotion on penny stock
I’ve lost most of my money with bad call in penny stock mixed with some emotional call like “buy more it will go up, it can’t go down …”. These were risky and I took 500$ to 25$ in less than 3 weeks. I can say that I felt in love with it at the beginning and kept buying shares. One of the investment rules in penny stocks is to never fall in love with a stock.
Invested in a company without a product
After that, I’ve heard about Titan Medical Inc and thought that seems to be a great company with a great future product. However, this company didn’t have any income and were developing a medical robot. Their road map changed and they needed more money so they made some share offering in the market and the price dropped from 1.20 to 0.50. I’ve invested some amount all between these prices. So now my 780 investment have a market value of around 500. I kept them since I already consider this money as lost and they made some change in the company that can bring a better road map or selling a product or being bought. If that happen it going to make some extra money for me else I’ve already considered a lost.
I’ve also invested in some electronic parts to sell on my own store and on eBay. The mistake is that it’s a niche where most of the user are ready to wait a month to get their parts from China. So I’m kind of stuck with these parts, but I still keep trying to sell them on eBay and if someones need it, they will have to pay a little more than China. I didn’t made a market research before importing some parts. I just looked at eBay and said “hey other seller from Canada charge way more than China, I could make money with that”. I should have looked at how much were already sold and not just at the price of the item. The profit margin is high, but if I’m stuck with these parts for months, it’s not the best since its money sleeping in my basement. At least, I can claim these parts and import fee as a business expense since I register my enterprise and that I’m still trying to sell them.
To resume my mistakes were that I didn’t follow my investment plan, I was too emotional on my penny stock, I invested in a company without product since I learned about it from co-worker and I didn’t do a market research before investing in some product to sell.
Readers: Did you made some mistake on your investment ?