Finding ten bagger stocks is one of the great dreams of investors. Take a look at the multi-year chart of Priceline below. Double-click on the chart to expand it. I actually owned Priceline for about $5 per share after the dot.com bust of 2000-2001. Unfortunately, I did not continue to hold it to gain thousands of percent in gains. My first mistake was that I did not understand the business model well enough compared to other stocks than I understood. Then, secondly, I did not know how long I would have to hold on to reap the reward.
What I should have done was to invest a small amount of money to start with that I could easily afford to lose, like $200. Then, I should have given Priceline seven years to produce. Thirdly, I could have dialed in a simple moving average line like 144 days to know when to sell Priceline and when to buy it back if I did not want to hold it the entire 12 years from 2001. Ten bagger stocks take a lot of patience, and you may have 99 losers for one big one. Most of your portfolio should be comprised of stable dividend paying stocks and bonds to assure that you don't lose all of your retirement looking for ten baggers. But if you do ever find and hold a ten bagger, the reward will be outstanding and the satisfaction will be exhilarating!
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