Multibagger stocks can drive attention of every investor. These silly mistakes of investors hunting for multibaggers should be avoided.
Multibagger stocks are stocks that have tremendous potential to generate manifold returns. Investors can achieve these mind blowing returns within a time frame of few years.
But, the process of finding the next multibagger stocks is not as easy as one might think. It is a challenging process that needs skill & experience to identify these hidden gems before others.
However, even if you have identified the right stock at the right time, mistakes are likely to occur. But, you should not derail from the process of identifying future multibaggers just from few failures.
You should rather learn from earlier mistakes to avoid their repetitions in near future. Once you gain experience in adopting this great strategy, you are less likely to miss out an opportunity.
Simultaneously, your stock portfolio is likely to move ahead of others. Here are 11 silly mistakes of investors searching for multibagger stocks:
[You can also watch an exciting video on this post from GetUpWise channel on YouTube.]
(1) Seeking Multibagger Stock Recommendations From Different Sources
It is one of the most common mistakes of investors hunting for multibaggers. Stock recommendations or tips are not a new thing in stock markets. These are prevalent in stock markets since long time.
These paid tips are available for investors either at free of cost or at certain commission. Multibagger stock recommendations or tips usually claim to provide multiple returns to its investors. New & even experienced investors can fall victim of these overt, get-rich-quick promises.
According to a post published in Nasdaq, Securities and Exchange Commission (SEC) had filed fraud charges against 27 people and businesses in April 2017 for allegedly publishing deceptive articles on popular social investment research websites.
These fake stock analysts or fraudsters try an array of tactics just to fool or mislead investors. It is often done by disguising paid promotions as objective & independent analysis.
Some of the highly vulnerable sources to fool all types of investors include phone calls, email messages, posts on social media sites, or stock message boards, & many more.
These bad practices can move market sentiments in the favor of the plans of big investors or speculators. Although, not all stock tips are bad but a bad one will definitely cost you heavily.
Therefore, investors are advised to research and analyze potential multibaggers by their own efforts rather than blindly following stock analysts.
- Mistakes Of Investors Hunting For Multibaggers: Shutterstock