What is “Bag Hopping”?
You pick a bunch of stocks that are heavily discounted, due to a rare market (or sector) crash. You expect each stock to return to its all-time high, once the market has fully recovered. However, not all of your picks will return to these levels at the same speed.
Bag Hopping means monitoring your portfolio, and taking profits of the faster bags, to invest them right back into slower bags, maximizing profits.
Ask yourself: Will a 300% recovery continue growing into a 600% recovery, or should you realize profits and hop into another bag that didn’t even start to move yet?
Source
I have been introduced to the concept of Bag Hopping and inspired to develop this trainer, by the great Tweedle on his stock picking blog Country Dumb.
Click on the button to start your training.
There has been a Black Swan event!
What's your dry powder?
Latest numbers are in!
Time to Bag Hop!
Your stock picks
| P/E | HI | LO | OFF | Shares | Amount | |
|---|---|---|---|---|---|---|
| A | 7 | $20 | $5 | -90% | 5k | 10k |
| B | ||||||
| C | ||||||
| D | ||||||
| E | ||||||
| F | ||||||
| G | ||||||
| H | ||||||
| I | ||||||
| J |
You've found 10 stocks % off their 52-week highs ✓
Due to undervaluation, they have a huge margin of safety.
| # | $ | |||||||
|---|---|---|---|---|---|---|---|---|
| A | $2 | $4 | +200% | 35k | 20k | |||
| B | ||||||||
| C | ||||||||
| D | ||||||||
| E | ||||||||
| F | ||||||||
| G | ||||||||
| H | ||||||||
| I | ||||||||
| J |
Current liquidity: $0
About this trainer
I've developed this trainer to deepen my understanding of the broader concept and to develop the habit of bag hopping in a practical sense. The stock movements in this trainer are a fictive simulation, since its purpose is to illustrate a concept. The Bag Hopping trainer is doing the heavy lifting (which is picking 10 suitable stocks) for you. Next, you get to interact with these stocks over two rounds of actually Bag Hopping, before the stocks climb all the way back to their 52-Week High. Such a behavior is obviously not guaranteed in the real stock market. The point of this whole simulation is to review the gains you have achieved in comparison to what would have happened to your investments without Bag Hopping. That being said, I'm wishing you a lot of fun, and please shoot me a message if you run into technical errors or have questions / critique. Thanks!