What percentage of profit do you settle for?
Looking at my portfolio, but knowing the market only a little, I'm attempting to get at least 10% per player before selling.
What do you guys normally aim for? Do you have a specific target and pull the trigger as soon as that's hit, or do you let it ride and see what you can get?
Ive made about 8% on Aouar and unsure whether to play it safe or let it ride
I've had varying degrees of success on different players but the one consistent is I've not known what price a player would go to. Instead I know their circumstances... For example if I bring in a player who's a free in the summer at a low price, I'll know they're gonna b linked with teams and what a transfer to those teams is likely to do to their price. So if the final move would continue to lift their price I leave it til theyve moved. If it's likely to cause a drop I wait til the rumours r heavy and sell at a profit then before the price crashes. So I trade more on each futures circumstances more than an actual number target.
10% is a rule that a lot of people go for. It should ensure you make modest but regular profit, and it's fairly low risk. Unless you pick total duds, 10% rises can happen quite easily especially if you buy at the right time.
However, this might sound weird, but in a way it doesn't matter what price you bought at and therefore what % ROI you are looking at. The only thing that matters is what the current price is and which way you think it will go. If you're looking at 10% but there's good reason to suggest he'll go higher then hold. Likewise, if you're only looking at 5% but can't see it going higher any time soon then you might be better off selling and moving funds into someone else.
On Aouar, he's a good shout for a move this summer, there's a fair amount of hype surrounding him. Until then though, Lyon aren't in Europe, it doesn't look like he will be at the World Cup and he hasn't really looked like winning PB. I would guess his price will be fairly stable though, given the transfer links. It's a tough one. I guess it depends on how much of your overall capital he is taking up as EL/CL and WC players will probably rise more than he will in the coming weeks.
TradingJournal last edited by
For short term stuff i will usually sell if there is either
But the best way is o just sell if you think they will drop or hold if you think they will rise
Agree with those above - setting a target for all players is unlikely to work out well for you, you really need to judge each case on its merits. As @Jazzman points out, even if you feel uncomfortable selling in the red, you have to be honest with yourself and if you can see you've made a bad judgement and the player is only going further down in the near future you're better off getting out before things get worse and putting the money into someone on their way up. Of course in some cases it is worth holding through a period in the red if you can see a reason why a big rise is likely before too long. This is why it's always worth having a strategy before you make any purchase - why are you buying? What rise do you anticipate? What would cause the player's peak? If you can answer those questions, when to sell should answer itself.