Find Multibagger Stocks With These 5 Tips

Hey! Have you ever heard anyone turn down an opportunity of earning a quick buck? Well, there’s a way which isn’t exactly quick but comparatively easier than establishing a business. A way which has the potential to return 1000% on your investment - the way of Equity investment.

However, making big bucks is a matter of selecting and holding on to the correct stock until the right time. Such stocks are called multibaggers.

The smartest and safest way to make the said quick buck is to hire a stock advisor or Equity Research Analyststo recommend such stocks.

Here’s 5 solid tips to finding multibaggers on your own:

• 1: Invest Only In Businesses That You Understand

Buy only that, that you already know or understand. Ask yourself - do I understand the business well enough to predict what will happen to it over a period of 10 or 20 years from now?

With industries like shipping you can since shipping of goods will continue to happen well beyond our foreseeable future. However you cannot predict the same with technology companies that might have a great product now, but which might become completely obsolete few years down the line.

• 2: Maintain Focus Only On What’s Knowable

Do not worry about those things that you can not do anything about or know about. Those aren’t important, instead keep your energies focussed on those things that you can do and should know well enough about the company’s business you are investing in.

• 3: Do Not Time The Market, Don’t Even Try

You can never ever find the bottom of the market, thus do not even try to time the market. Instead buy a stock if you get it cheap in terms of its future prospects and intrinsic value. The only thing you need to get right is - the business. Get that right and everything else will fall into place.

• 4: Be An Opportunist, If It's Cheap, Buy It Immediately!

If you see a great buying opportunity today, GRAB IT! Don't pass it up hoping it will get cheaper tomorrow. You can easily miss out on a lucrative opportunity to procrastination. It’s not only important to identify the opportunity but then to be decisive and to act on it. Don’t get stuck in a trap where you are perpetually seeking out extra information to validate your idea.

• 5: Don't Buy Stocks Which Offer A Fixed Return

There’s no point of buying shares of a company like that of an electricity company wherein by law the return on investment cannot exceed a certain amount. However, this logic does not mean that electricity and utility companies should not be a part of your equity portfolio as they offer an excellent defence mechanism to the volatility of the stock market with the undemanding demand for their product and their predictable cash flows.

The most important tip of all - stock market investment come with a disclaimer - investment stunts are performed by professionals and should not be attempted at home. Hence, until and unless you aren’t a professional don’t gamble with your investment. Hire the services of a professional and learn from their strategies and techniques until you have forged one of your own. Stock advisories like Niveza India not only provide accurate stock tips they’re also very first time investor friendly. You can discuss almost anything related to stock market with their research analysts.