News

Understanding Bagger Shares and Criteria, Investors Must Know

The understanding of bagger stocks must be known by traders. This is because the term refers to the condition of the stock that has the potential to return.

Stocks are one of the investment instruments that have many advantages.

In addition, in stock investing there are also many terms that investors and traders must know.

The terms that exist in the investment world certainly indicate the movement or condition of the stock that is currently happening. For example, about the notion of bagger stocks.

Bagger stocks refer to good conditions or are able to provide high profits of up to 100%. For more clarity, you should refer to the following review.

Also Read: How to Calculate Stock Market Cap, Definition, Factors and Examples

Understanding Bagger Shares, Investors Must Know

The world of investment is currently growing rapidly. Even though I’ve been through a pandemic. However, investment activity is still waiting.

This allows people to run it without having to collect a lot of money first. Stock is an investment instrument that is chosen because it can provide many benefits.

In addition, shares are also an instrument with easy transactions. Especially now that the digital world is getting more advanced.

This makes all investors able to help the movement with only sophisticated tools. You can even use a smartphone.

Some stocks can indeed experience various conditions. Can return high enough to reach 100%.

The definition of the term bagger is also known as the multibagger which has become quite popular since 1988.

Bagger itself comes from the word base of a baseball game. Where is the benchmark for the success of a baseball player.

Usually the term is widely used when the condition of the stock mentions the amount of return. For example, the notion of bagger stocks:

  • 20 bagger, is a stock that is able to generate a return of 20 x of the initial investment
  • 30 bagger, indicating if a stock can generate a return of 30 x of the initial investment capital,
  • etc.

Also Read: Stocks Entered on the Stock Exchange Watchlist Have Predefined Criteria

Bagger Stock Criteria

After knowing the explanation of the definition of bagger stock, you also need to know the criteria. In determining the bagger stock, a trader or investor must know the criteria.

The criteria for these shares have different provisions. The general criteria are:

Don’t Have A Lot Of Debt

The first criterion is of course the stock does not have a lot of debt. You can see this from the notion of bagger stocks that have high profits. Make sure the company has a reasonable level of debt.

Anti Crisis Stock

Bagger stocks are anti critical. Generally have good fundamentals, so they don’t experience a decline due to some sentiments, stock prices recover quickly.

Also Read: Stock Swing Trading Strategy Helps Traders Make Profits

Have a Small Price to Earning Ratio (PER)

As for the other criteria, it is better to look for stocks with the smallest or the smallest PER.

Because if you look at the notion of bagger stocks, it shows that the stock has a high profit of up to 100%. (R10/HR-Online)

Source : HarapanRakyat.com

Leave a Reply

Your email address will not be published.