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The art of entering and exiting a multibagger

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My mentor called it "Riding the Tiger!"

You can't stay on ... you can't get off!
 
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Re: Multi Bagger

What bothers me about these stellar stocks is that newbs get on them, not knowing how to get off.

Take some profit along the way!!
 

tech/a

No Ordinary Duck
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Re: Multi Bagger

This is how you get off.
All you have to do is use it.

Mouse.gif
 

Joe Blow

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Re: Multi Bagger

Hi Burglar, just wondering what purpose you meant this thread to have. What is it that you want to discuss about multibaggers?

I think this thread might need to be retitled and the discussion refocused.
 
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Re: Multi Bagger

Hi Burglar, just wondering what purpose you meant this thread to have. What is it that you want to discuss about multibaggers?

I think this thread might need to be retitled and the discussion refocused.
If you asking what has prompted me to start this thread:

Pumping til newbs get on board, thence dumping.
Not against it per se, just warning of the dangers.

Expected some lively chatter re entry and exit strategy.
Trailing stops and crystal balls?
but instead got a picture of a rodent. Oh well!
A picture paints a thousand words!!
 

Joe Blow

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Re: Multi Bagger

If you asking what has prompted me to start this thread:

Pumping til newbs get on board, thence dumping.
Not against it per se, just warning of the dangers.

Expected some lively chatter re entry and exit strategy.
Trailing stops and crystal balls?
but instead got a picture of a rodent. Oh well!
A picture paints a thousand words!!

So is it the pumping and dumping of multibaggers or how to spot a multibagger that you'd like to discuss? I think we need a more specific thread title.
 
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Re: Multi Bagger

So is it the pumping and dumping of multibaggers or how to spot a multibagger that you'd like to discuss? I think we need a more specific thread title.
In my example, FCN Falcon Resources were the market darling of November 2004

in the morning they reached $1.47, by afternoon down around $1.20

No one sent me a telegram. Thats my point, I think!
No one tells you when the lift reaches the top floor.

Am I making sense?
 

Joe Blow

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Re: Multi Bagger

In my example, FCN Falcon Resources were the market darling of November 2004

in the morning they reached $1.47, by afternoon down around $1.20

No one sent me a telegram. Thats my point, I think!
No one tells you when the lift reaches the top floor.

Am I making sense?
OK, I think I understand. I have renamed the thread to be more specific so we can focus the discussion. In web searches I have noticed that multibagger is usually one word so I have modified that as well.
 
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Re: Multi Bagger

OK, I think I understand. I have renamed the thread to be more specific so we can focus the discussion. In web searches I have noticed that multibagger is usually one word so I have modified that as well.
Thanks Joe!

Once I saw the photo of the mouse, I thought the thread was dead!
Having seen your interest, perhaps it is a worthwhile topic!
 
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Personally, i only invest in small-mid caps so this is an issue i have come across a few times. I nearly always take part profits and leave the rest in. I just don't have the skill to pick when a run has come to an end. Easy in hindsight but hard in foresight.
 
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i think the art is not just to spot the potential big bagger but to hold your nerve

when others are looking to exit.

for example i like a new tech company listed not long ago BCT its product is

called bluechiip which is a tracking device for use in the medical industry.

im going to get in now with all the smart money & yes it may take time

but holders will be rewarded as for an exit just set yourself a price you think

is best value.

dont forget BCT is a tigerboi quadzillion bagger...tb
 
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I often think about this. Not having studied T/A to any great depth, I'd like to have a simple plan in place...

i.e. 'if SP doubles sell half'. Recover the original investment and let the rest ride...but for how long?

If the stock doubles in price again do you take more profit or just sit on it?

If you have conducted significant F/A then maybe your exit point is based more around fundamentals.

Why did you buy in the first place? It could be that you saw potential in the company that the broader investment world wasn't aware of, if the market becomes more aware of the potential of the company, and hence the SP explodes, maybe that is the time to significantly reduce exposure, and look for the next future multibagger.



Tough questions. Would be nice to be in the position to have to ask them.
 
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Whatever you do, don't do this

http://www.scribd.com/ValueWalk/d/47552460-Jeremy-Grantham-GMO
Isaac Newton.png
Newtonhad the great good luck to get into the South Sea Bubble early. He made a really decent investment and a very quick killing, which mattered to him. It was enough to count. He then got out, and suffered the most painful experience thatcan happen in investing: he watched all of his friends getting disgustingly rich. He lost his cool and got back in, but tomake up for lost time, he got back in with a whole lot more (some of it borrowed), nicely caught the decline, and wastotally wiped out. And he is reported to have said something like, “I can calculate the movement of heavenly bodies butnot the madness of men.
 

Purple XS2

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For a potential multibagger, I try to set a dream scenario before I buy in, a sort of inverse to capital exposed:
So for example: I put in $1,000 - if it doubles, oh joy - sell half and be free carried on a stake now worth the original buy-in - get out quick on the first sign of weakness, because that second sell is your profit.

For bigger stakes, sell a smaller fraction, but sell sooner and settle for a nice profit (say, 33%, on 1/3 original holding?) Again, sell most of the remainder on the first sign of a stall.

The simple fact is that a good profit is much, much more likely to disappear than to double again. Always be be prepared to take at least some off the table. Greed may be good, but it needs to be contained lest it do you in. The rise is so much more (NB: more, not less! ) enjoyable when you've actually stashed some of it.

And finally, I've been playing this game for about 7 years, just in time to get a bit too cocky for the GFC (Mk 1). I've only caught 1 true multibagger ($x * 4, CDY, November 2010), and yes, I could have in theory made more, but the stash that I banked saved my bacon - if I'd played it hard, I would have been left with burnt toast.
 
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Just had a look, that's a great thread.
Agree with you sinner,

I don't know how these good threads end up in the basement.

tech/a
What a coincidence to find FCN Falcon in your thread.

I did a double take when I saw it.
 
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Any thoughts on SYR Syrah Resources, the current "market darling".


Would you enter at around $2.50 expecting it double before year end?
I am not that brave!!
 

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