How to identify Multibagger stocks

How to identify Multibagger stocks

We all look for a stock that provides us the best returns. We all try to invest in multibagger stocks. But what are these Multibagger stock and how to identify them lets learn in simple language?

Let us start with how to identify Multibagger stocks.

The stock which provides return more than what is invested is called Multibagger stocks. In case the value of a stock increases by 2 times more it is called as two-bagger stock.

In case the value of share increases 10 times more then it is called 10 baggers and if the value of the stock increases more than 10 times it is called multibagger stock.

The identification of these stocks become difficult at times. It is similar to the identification of a cuckoo’s babies in the nest of a crow. There can be a stock in a trader’s portfolio which might provide excellent results and become a multibagger stock.

Let me explain it to you with the help of an example.

When you take admission in the college you make friends and as time passes you realize the difference between fake and real ones. Similar to this when you purchase a stock it is hard to identify which stock will provide the best returns.

Here is a list of steps through which one can identify a good stock:

  • Keep yourself updated with market news on a daily bases. The trader should have knowledge about the companies and their development.
  • While purchasing shares of any company acknowledge if the company is in any type of debt. if yes that not more than 30% pledge.
  • Analyze the 3-month growth and profit level of the company and then make any investment plan.
  • Keep a check on the company growth value and the speed at which it is growing. If the company is growing at a good speed it might turn into a multibagger stock.

It is better to invest in stock with the guidance of an expert they will help you earn better returns. I would suggest not to judge any stock on the basis of Fake Tips Providers. They generally announce any stock as a multibagger stock in order to earn money.

Always keep in mind that news can affect the stock market. example when there were rumors about Maggie in news the stock of this brand automatically decreased.

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