Double your money with cheap ASX shares

It's hard to know which ASX shares are cheap right now, but here's how a few bargain buys could have doubled your money today…

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It hasn't been a great year for ASX shares with the S&P/ASX 200 Index (ASX: XJO) slumping 21.57% lower in 2020.

However, buying low and selling high is a foolproof strategy if you can pull it off. For instance, let's take a look at what happened in the recent bear market.

What happened in March 2020?

The Aussie benchmark index fell sharply in late February as coronavirus concerns took hold. From 7,139 points at the 21 February close, the S&P/ASX 200 Index fell 36.32% and bottomed out at 4,546 points on 23 March.

That's not good news for most of us and our share portfolios. However, there is certainly a reward on offer for those that are willing to take some risk.

Which ASX shares would have doubled your money?

The Pointsbet Holdings Ltd (ASX: PBH) share price closed the day at $1.19 per share on 23 March. The ASX 200 wagering group's shares were hammered as American sports shut down thanks to COVID-19 restrictions.

However, April has been a really strong month for shareholders. In fact, the Pointsbet share price is now trading at $3.40 per share – an increase of 185.71% in roughly 1 month.

That means a $10,000 investment in the ASX share on 23 March would be worth a tidy $28,571.43 today. Not a bad wager, right?

Another cheap ASX share on 23 March was Emeco Holdings Limited (ASX: EHL). Emeco is an Aussie heavy-duty equipment provider that operates in the mining services sector.

Now ordinarily, Emeco shares would not be at the top of my buy list. But you'd be laughing today if you had snapped up the ASX industrials share for $0.51 per share on 23 March.

The Emeco share price closed at $1.11 per share on Friday. That's a return of 101.82% – more than double your money in just 1 month.

How can I deal with ASX FOMO?

It's easy to look back and think "what if". But rather than worry about the ones that got away, you need to look ahead for opportunities.

That means formulating an investment strategy for ASX shares that you're comfortable with and that can achieve your goals.

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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