Diverse portfolio and strategy for growth
I just wanted to share a strategy I'm using this season which incorporates holding some established dividend earners to grow my IPD / short term trading opportunities.
The purpose of this is to give an insight into how someone with essentially a "long-term" strategy and only a small portfolio can still own a couple of "big boys" whilst achieving decent growth in other areas too 👍
I've a total portfolio investment of £1500 (now worth over £2800 after 11 months) currently consisting of 15 medium to long-term holds and an average of 50 shares in each , with 2 extra players on top of that who are interchangeable within the 30 day IPD qualifying period.
I set aside £150 (10% of my initial investment) earmarked for these IPD players at the start of the season.
The most recent two I have bought are Wout Weghorst and Leander Dendoncker.
Weghorst is the player who's 30 days will expire first so let's look at him...
Bought on the 14th August, he scored on the 17th so I got my 1p divs from him...
So, with his goal i got divs but also some capital appreciation. This is his current value after 8 days...
Just under a 3rd of the way into his 30 day qualifying period and he's performing well. I do have a trigger price of £1.20 in mind so if he reaches that at any point in the next 22 days then I'll list to market sell.
MEANWHILE, whilst all this is going on, my dividend earners (Pogba being my main choice but you may have Neymar. .. or BOTH 😯😃) are keeping the small amounts of cash regularly coming in...
£78.75 went into Weghorst - but lets say I sell now to market (£85.50) then I'll get £83.78 back after commission. A modest profit of roughly 8%.
But in only 8 days I've now gone from £78.75 to spend on one IPD player to £90.77 ( Weghorst sales revenue plus dividends earned since Sunday). 11% more to reinvest in the next IPD player 👌
Thing is, I still own Weghorst so he will likely rise higher leading up to his next game. And if he scores again!? 💰💵💱😀
And all the while there is a likelihood of more divs coming in from media or indeed PB and ALL OF THIS ADDS TO THE NEXT IPD PURCHASE 😆.
And bear in mind, this is using just 5.35% of my current portfolio value so all the while the other 94.65% is doing its thing and growing steadily (usually!).
There is no right or wrong way to trade on Football Index but it's definitely advantageous to diversify your portfolio and your strategies IN MY OPINION
Hope this is useful to someone!
@ScouseSte very good strategy as this is mine too. I think about 6 months ago you posted changes you were making and i liked your plan and did something very similar and changed my entire portfolio. I have a bit more invested but the size of my holds are virtually identical in fact our transaction histories are much the same too. Its working very well for me and i wish id done it from the start but I'm only looking forward now
Spot on mate 👍.
I personally think it's a cautious yet still nicely profitable approach. And whilst many are advising new traders to invest solely in the cheaper end of the market, this shows a way you can do both.
My portfolio is very similar and I have the same strategy, mind you mine does need cleaning up a little. I have proven Div winners both media (Pogba) and performance (Messi) and have a large variety of players for CAP Appreciation.
Since Monday I have made £12 in divs from Pogba alone which will now allow me to reinvest and top up some of the players I have less shares than I would like in.
@ScouseSte it works brilliantly for me. When one player drops another rises and as all my holds are of similar value i dont feel the drops to badly and rarely get the urge to panic sell anymore
Collymore10 last edited by
@ScouseSte brilliant post, thank you so much