Holding 100+...is it worth it?



  • Hey Guys

    Let's hear your views on this....

    Personally i have come across several occasions over the last year that holding 100+ in any one player seems to be more hassle than it's worth....

    An example of this is Salah....he is a monster at winning PBs but when it comes to making profit on him seems to be hard work !!

    I owned 150 of him at one point and PB wins were coming back at £18.00 or even £27.00 but in relation to the Cost/Value price the difference was only 11p due to constant price fluctuation, so selling him via 'Instant Sell' would result in making a loss.

    A lesson for new traders on the Index?

    Cheers

    AndyP



  • @AndyP32 I don't follow your point ... the price fluctuation would be the same regardless of how many futures you held?



  • @BL__FI basically i am saying that holding more futures benefits for PB and MB returns but not necessarily when selling for profit.



  • @AndyP32 It's the same as anything, the more you invest the higher your potential rewards and also the higher your risk. As you say, with 100 Salah, when he wins 18p of PB you get 180 quid, whereas if you held 10 futures you would only get 1.80. That is your increased reward for the higher initial investment. When you buy 100 Salah, for every penny his price increases your potential profit increases buy one pound. If you only buy 10, your potential profit only increases by 10p for every penny his price rises. That again is your increased reward for the higher initial investment. If you bought 100 Salah at 4.00 and sold them all at 8.00 you would make 384 quid profit. If you bought and sold 10 futures at those prices, 38.40 profit. Thus it follows that if you buy at 7.95 and Instant Sell at 7.93 you won't make any profit regardless of how many shares you bought.

    It sounds like you just bought Salah at too much of a peak to make much profit on the sale ...



  • Yes it is, in some cases the more the better ;)



  • @BL__FI all understood, thanks for the reply.



  • @BL__FI

    100 shares with an 18p dividend per share equals £18, not £180. Although I prefer your system of paying out dividends!



  • Why would you instant sell him ?



  • @ocs123 Haha ooooops! Living in dreamland for a moment there ...



  • The only additional risk you might have in holding hundreds is that it may be marginally slower to sell to market, given the volume of shares. All other risks and rewards scale with the amount of shares you hold.



  • @AndyP32 said in Holding 100+...is it worth it?:

    Hey Guys

    Let's hear your views on this....

    Personally i have come across several occasions over the last year that holding 100+ in any one player seems to be more hassle than it's worth....

    An example of this is Salah....he is a monster at winning PBs but when it comes to making profit on him seems to be hard work !!

    I owned 150 of him at one point and PB wins were coming back at £18.00 or even £27.00 but in relation to the Cost/Value price the difference was only 11p due to constant price fluctuation, so selling him via 'Instant Sell' would result in making a loss.

    A lesson for new traders on the Index?

    Cheers

    AndyP

    If you wanted o put a point across you picked the worse example ever I actually have no Idea what you mean. Do you mean if you buy 1000 its a nightmare working out he average? Yes I agree. However am guessing am wrong, dont text and drink ;)


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