You’ve heard of multi-bagger stocks; those stocks that return many times your original stake. Well, here’s one in the shape of Renewable Energy Holdings.
The share price of this stock had fallen massively in recent years, before flat-lining. As per my position trading philosophy I was happy to establish a small exploratory position on the basis that the price would either multi-bag (returning many times my initial investment)… or I wouldn’t lose very much money if it went to the wall. Fortunately, in this case, it multi-bagged as shown in the following SpreadEx chart.
The first thing to note is just how quickly it multi-bagged once it had decided to do so!
The second thing to note is that — in this case — my very modest punt was in the form of a traditional investment via a stockbroker rather than a spread bet; as illustrated below. I never said that position trading had to be via spread betting!
The third thing to note is that while a minuscule £500 “investment” would usually not be cost-effective in a regular stockbroker account, because of buying and selling fixed costs, it can be cost-effective as long as you’re expecting a multi-bagging return. What’s a £12.50 dealing fee when you just made £1,250?
Two Steps to Better Spread Betting:
1) Buy the Better Spread Betting Book
2) Sign up with Capital Spreads, IG, ETX Capital, or Spread Co
Disclaimer: this posting is for general education only; it is not trading advice.