Dividend Loopholes?

  • I'm pretty new to this but I'm slowly getting my head around things. However, after reading about how the dividends work I noticed a couple of potential loopholes in which you could make some money. So unless I've misunderstood, I'm after some clarity from you more experienced folk and have a couple of questions....

    1. It states that to qualify for MB and PB dividends you need to have purchased shares by 3pm (UK Time). So does this mean that on a weekend, when a number of games are played prior to 3pm (i.e. Chelsea tomorrow lunchtime), you could in effect bring someone in after they've scored a hattrick in a match before 3pm and you'll still get any MB or PB dividends that are rewarded to them at midnight (if they finish time in the categories of course) ?

    2. It states that as long as you've brought someone in before 23:59 on a matchday and it's within the 30 days, you'll get IP dividends. Therefore and like many probably did last night for Diego Jota, you can bring someone in during a match (probably last night once Jota got his 2nd goal) and not only get all the IP dividends paid to you at midnight but also take advantage of others doing the same and that players price going up. Resulting in you selling just after midnight, having been paid the dividends and made money on their price going up (would still be a profit even with the spread for an instant check out)?

    Seems like a couple of easy(ish) ways of earning a quick buck, compared to other players on your portfolio who you'll be holding for future prices rises and/or current dividend payouts (up and coming talent, established PB/MB dividend star, etc, etc)

  • @Erased-Citizen The answer is yes to both questions. But a couple of points worth noting.

    1. Players scoring well for PB in the early kick-offs see big price rises but they can easily be, and often are, overtaken during the day. The price then drops back very quickly at this point. It's far from easy money as if you're not watching and paying attention all day you can very easily find that "steal" you bought at 2pm has not won PB and is 20p lower than you bought at.
    2. The same applies to IPDs. There are plenty of people that trade for IPDs, and very often you will see price drops at midnight as you can sell and still get the IPDs.
      There is money to be made in both, but they are far from easy.

  • @Erased-Citizen all true, but in short you are thinking you can buy a £2 player for £2 after they've hit a hatrick or big pb score... You can't, he would be £2.50 already by full time. Then as Janner says, if later in the day they are overtaken they drop back down significantly.

    I advise monitoring things for a few weeks. Try buying just one share of someone you think is easy money and see if you get out at a profit. Try it 10 times or so... If you are right enough times... Then make it a strategy as you'll have found an edge.

    I think 8 out of 10 you will lose tho and then be glad you trialled it first

  • Thanks for the clarity and the key points you've mentioned to keep in mind.

  • I'll give it a go with one share a few times and see how I get on as plenty seemed to be doing it with Jota last night.

  • @Erased-Citizen if i was you i would stay away from this type of trading until you have observed and understood the market with great depth. Ive been here over a year and a half and consider myself a reasonably experienced FI trader but i steer well clear of the IPD trading and early PB score gambles. Its worth remembering most people will have bought players weeks in advance for that early kick off and will be hoping to offload in the event of the exact situations you have mentioned.

  • Jota was quite unique set of conditions that mean jumping on him last night was far more then just because if the 3 goals ipd.

    Prior to last night Jota price was below his peak price.

    Last night means Wolves are all but through to next stage of Europa League and closer to those gold dividend days..

    Jota is young and playing in prem and will no doubt generate some media. Will he stay at wolves, etc etc.

    Jota probably included in Portugal Euro team.

    His price is fairly cheap considering other strikers especially when looking at his form and it's still cheap even now.

    This means that not only did people buy into Jota last night it is likely a lot of people will hold him and not just flip him for a quick buck meaning we will not see the drop in price that many others suffer after winning divs.

    Payet has been a good example prior to winning divs was 1.25.. won divs and went to 1.55. My mate held out for what I remember was a 10p div return but the very next day he was back to 1.35. This means if you had bought into Payet during the game at around 1.50 you would won 10p but lost 15p in player value.

    1 share is good way to learn these things so go for it 😁

  • @Riley's-Liegemen This is a very good point. The price reactions and movement move positive initially and potentially negatively afterwards are unique to each player and their circumstances.
    The market can react in 2 completely different ways in the same circumstance for 2 different players. These are the things that it takes time and experience to learn.

  • I'll take all of these excellent and appreciated replies on board while trying a one share experiment as Jota's price increase did come during the game but it's a very good point in that it wasn't just because of IPD but the points raised by Riley's Liegemen.

    Just getting my head around how to build my portfolio as I already have a mix of up and coming talent that should/could rise well long term (i.e. Mykolenko, Neuhaus, Cucurella, etc) and established players who already score well but also have big moves and/or careers ahead of them (i.e. Van De Beek, Grealish, Haaland, etc).

    Really appreciate the responses ; thank you!

  • Yes is the short answer but you need to be experienced to make money in this area, as prices will rocket when a player is doing well but also drop just as quick once those who've held for a while use the spike to get out. You only get dividends if you own the player at the end of the day so whilst you may have jumped on Jota when he's done well, you get the dividends from his hattrick, media and star man, but his price drops and end up making a loss.

  • If you’re new I’d stay well away from IPD and early PB score flipping. It’s almost the same as IPOs, sounds like easy money to be made as all you have to do is buy an sell, but >90% of the time you’ll probably find yourself too late and player prices have already risen to amounts you’re not willing to pay for, or even if you were you’re not likely to see any profit made for a while due to the price spike that’s already happened.

    I’ve been on here since Sep 2019 and wouldn’t consider myself experienced as these guys by any means, but even I don’t bother with quick flipping. Done it once and escaped in profit with Bruno, but the worry of prices falling isn’t worth the hassle. Focusing on PB players for a while is probably your best bet, just focus your port on that

  • Wouldn't recommend it as a strategy for all the points raised above by experienced traders, also if you try it you are going to get stung by VAR on several occasions.

  • I would also heartily agree with those advising against this approach. It is inefficient with often minimal or no rewards and the strong possibility of losing money.

Log in to reply

Looks like your connection to Forum was lost, please wait while we try to reconnect.