What does a Multibagger stock mean?

Any stock which generates returns in multiples of its price can be termed as a multi-bagger. However, in the stock market, this term is usually associated with stocks giving returns in excess of 10 times its price (i.e. ten baggers and above). 

How to identify a multi-bagger stock using the Cycle app:

Cycle app has been designed to help users identify & shortlist multibaggers for their long term portfolio. The steps to follow are:

Shortlist a stock based upon the following two basic criteria: 

• It must have BUY signals under all 3-time frames (Short, medium & Long term).
• It must have a minimum CRS rating of 80.

Once the stock is selected, take note of the “stop-loss” mentioned under the Long term BUY signal and use it in future, if necessary. 

After buying this stock, keep a close watch for any signal change under its “LONG TERM” time frame and exit (book profit) once the signal changes to Wait. 

Here, it must be noted, that although the app is designed to benefit the users in identifying multi-bagger stocks, market risks cannot be overruled and hence the success rate of 100% cannot be guaranteed. Therefore it is imperative to act in accordance with prevailing situations:

Remember!

A stock turns into a multi-bagger in future over a period of time (usually 5-10 years) and hence patience is the key to success.

What is Swing Trading?

Swing trading is a form of trading in which short term trends are picked to gain from sufficient price movements. Here the positions are held for longer than a day and up to a few days or weeks. 

Typically, swing trading involves holding a position either long or short for more than one trading session, but usually not longer than several weeks or a couple of months. This is a general time frame, as some trades may last longer than a couple of months, yet the trader may still consider them swing trades. 

Who Practices Swing Trading?

traders looking to capture short term movements and looking to book profit in the range of 1-5% over a week/month are generally Swing traders.

What Are the “Swings” in Swing Trading?

Swing trading tried to identify entry and exit points into security on the basis of its intra-week or intra-month oscillations, between cycles of optimism and pessimism.

Which Types of Securities Are Best-Suited for Swing Trading?

While a swing trader can enjoy success in any number of securities, the best candidates tend to be large-cap stocks, which are among the most actively traded stocks on the major exchanges.

How to use “Cycle” for mastering Swing Trading

Swing traders can efficiently make use of “Cycle” in the following way:

• Shortlist those stocks which have a “BUY” signal in both short term & mid term time frame. This will increase the probability of gains. 
• Among the shortlisted stocks, invest in the ones which have a CRS rating of more than 80. This will ensure sufficient positive price movement based upon performance. 
• Sell the holdings on realisation of intended profit or when the short term changes to “WAIT”.

Please refer to other “Cycle” tutorials on CRS rating and Reversals to understand more.

Making the right investment decisions can be complicated. We may read the news and find immense data on a stock that is doing pretty well in the market, and conclusively, everyone starts to talk about that stock, a few buy it, and on very rare occurrences, they end up earning great results.

But have you ever wondered the deep-rooted reason this happens? or understood the science behind how that stock is doing so well at that moment? How is its price on the rise? We have a straightforward answer to that; it is because of the Demand & Supply principle. 

Before we dive deeper into how we can use the law of demand and supply to make the right investment decisions, let us first understand the law of demand and supply.

Law of Demand and Supply 

The law of demand and supply is a universal concept where the price is a function of demand and supply. It is an economic model that determines the value in a market. It assumes that in a competitive market, holding all else equal, the unit price for a particular good, or other traded item such as labour or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the amount supplied (at the current price). 

In simpler words, demand and supply will keep pulling and pushing prices in either way depending on their value in its market. 

How do you make the right investment decision using the demand and supply approach?

There are a hundred reasons that could coherently affect the demand and supply of a particular company. Significant factors that could affect the demand and supply for stocks are economic data and corporate results. Great economists have tried and failed to predict, time and again, what could possibly be the central and foremost reason behind the fluctuation between the relation of demand and supply, and price and in retrospect can only be talked about and analyzed.

When the demand of a company rises and does not have supply to support it we should buy the stock. When the supply of a stock increases, without the demand to satisfy it, we should sell the stock. This could single-handedly take months of research before actually predicting the future of stock by an ordinary human being.

How do we simplify this process for you to make quick investment decisions?

• Cycle app helps you translate the demand and supply approaches into actionable buy and sell signals through its swift algorithms; offering signals that could take months of research to reach an enforceable decision. 
• When supply does not meet demand, it shifts to a buy signal and when demand doesn’t meet supply then shifts to sell, and when both demand and supply meet, it gives a wait signal helping you make better investments. 

To back this up, it gives a signal history of the performances of over 10000+ companies, and how using this approach has helped many make profits and save losses. 

Please refer to How to use Cycle tutorials for learning how to make effective use of demand and supply principles with the help of various signal combinations in short term & long term investing.

For being a profitable Long Term trader you should first look at those stocks which have a “BUY” signal in the long term.

Trading is primarily driven by two strategies.

• To buy at breakouts. 
• To buy after corrections.

Buying at breakouts

If the signal combination for both the Midterm and the Long term is showing “BUY”, it clearly reflects breakout and hence one can go ahead and buy the script. 

Leveraging from corrections

Using Stop loss function

Once you have identified which Scrip to buy, you should next take care of your investment against any unforeseeable losses on account of market fluctuations.

Therefore, use the Long term “stop-loss” which has already been mentioned in the “Cycle” app.

Please refer to How to use Cycle tutorials for learning how to make better decisions for long term investments with the help of various signal combinations along with CRS score, stop loss and reversals

For being a profitable short term trader you should first look at those stocks which have a “BUY” signal in the midterm. This will increase the probability of gains. 

Trading is primarily driven by two strategies.

• To buy at breakouts. 
• To buy after corrections.

Buying at breakouts

If the signal combination for both short term and midterm is showing “BUY”, it clearly reflects breakout and hence one can go ahead and buy the script

Leveraging from corrections

Using Stop loss function

Once you have identified which Script to buy, you should next take care of your investment against any unforeseeable losses on account of market fluctuations.

Therefore, use the short term “stop-loss” which has already been mentioned in the “Cycle” app.

Please refer to How to use Cycle tutorials for learning how to make better decisions for short term investments with the help of various signal combinations along with CRS score, stop loss and reversals