11 Silly Mistakes Of Investors Hunting For Multibaggers

Silly Mistakes Of Investors Hunting For Multibaggers Woman traders busy in analyzing potential multibagger stocks.

(8) Expecting Multiple Returns Quickly After Making Positions In Multibaggers

It is one of the most ridiculous mistakes of investors buying & holding multibagger stocks. Everyone wants to make money as quickly as possible. This human behavior is even true among those who have identified & holding right multibagger stock.

These types of investors start tracking daily price fluctuations of potential multibaggers. They are expecting the stock price to rise immediately as the stock was just waiting for their entry to rise.

This is going to do more harm than benefits to the investors. This unrealistic behavior results in exhaustion of the investors before the right time to sell a stock.

Generally, every investment including multibagger stock investment needs reasonable amount of time before it start growing your wealth. You should invest in multibaggers at least for a time period of 3 to 5 years.

Simultaneously, you should concentrate on business performance of the company rather than daily stock price. If its business activities are growing constantly quarter after quarter then its stock price will eventually follow the trend.

Thus, investors should have a great deal of patience to book multiple returns from expected multibaggers.

[Read Also: 10 Signals Indicating Stock Price About To Surge Heavily]

(9) Expecting Multiple Returns In Mutual Funds & Real Estates

It is one of the most shocking mistakes of investors looking to gain multiple returns. Mutual funds are the entities that are funded by a large number of investors. They are professionally managed & usually invest in diversified holdings for stable returns.

But, there are several investors who expect multibagger returns from mutual fund schemes. It is hardly possible due to presence of diversification in different sectors.

Additionally, mutual funds have no history of giving multiple returns in at least 3 to 5 years. Generally, the returns of mutual funds are average due to high inflation & associated cost.

You can only get average returns from mutual funds by investing in regular fashion with a long-term view. Similarly, real estate investment is also not so appealing as far as multiple returns within 3 to 5 years is concerned. Real estate boom is not coming within few years.

Therefore, investors are advised to start learning various tricks to identify multibagger stocks by their own efforts rather than looking for mutual funds or real estates.

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  • Mistakes Of Investors Hunting For Multibaggers: Shutterstock

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1 Comment on 11 Silly Mistakes Of Investors Hunting For Multibaggers

  1. The biggest thing is that newbies need to stop going off of everything they see on a stock message board imo. I’ve been following a board for a long time and no matter what you will always see “pumpers”. Now only if I would have learned this back when I started lol.

    Nice post thanks.

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