Biting the bullet
The football index is full of positive investment stories and that’s all well and good But sometimes it can be educational and informative to hear a negative investment story and maybe we can all learn from them.
So what’s been your worst investment where you closed up and decided to sell and in footballing terms what caused it to be such a bad investment?
Mines was harry winks, The guy looked like he was the next hot prospect and getting a run of games! I invested at near enough his peak value, 1.70! A lack of first team games seen him plummet almost instantly with poor signs of recovery! After months of holding out and weighing it up, I recently decided to sell and took around a 25% loss! A bummer, but we live and learn!
@devlin7 Mine was Sanchez, brought him during the Jan transfer window, didn't sell him quick enough and kept hoping he would rise. I only started investing 2 weeks earlier so was a newbie. Decided to cut my loses and lost over £1 per future.
I'm still relatively new to this, since February. All I can say is I haven't lost much on selling, but it's about when you sell is when you lose. For me I sold because on a whole I was thinking more with my heart than my head(my team) 😍. But I've seen players fall and then rise again. Some of it is down to patience. My example is Kane, bought in at £9.17, watched him rise and rise to nearly £10, but after hitting the post against juventus in the CL and then getting dumped out of it, he dropped, I decided to hold on. Then in next game against Bournemouth he got injured, he dropped to about £8.9, I was tempted to sell then. But I held on and now he's rising right back up again and I'm back in the black(green) 😎. Neymar is another example though too.
Worst in terms of the amount - Marco Reus: I bought after the first leg defeat thinking he had bottomed out and they might yet turn it around anyway, he'd make the World Cup and Spurs were linked for summer. Then he signed a new contract and plummeted further, and of course Dortmund crashed out. However I actually bit the bullet pretty fast and got off a lot more lightly than some (down about 40p), plus I could justify my thinking so didn't feel too bad about it.
Most painful - Faouzi Ghoulam: Bought at what I thought was his trough post-injury, then he got a recovery setback but I held on. Eventually decided I really wanted to free up the cash for some good opportunities. Instant sold not long before Man U links got reported and he jumped up above my original buy price ...
It is true that patience can be a virtue, but it's definitely also an important trading "skill" to be able to face up to an error in judgement and cut your losses when necessary. All depends on the individual situation, but it's silly to always think "If I hold long enough I can sell at a slight profit" (even if that's true) if you could be making way more out of your investment elsewhere during that period.
I agree, when investing you have to switch off all you emotions (the hard part) and make informative decisions!
I made a few bad calls when I first started. Sold griezmann at a loss in the January transfer window. Sold mhkatarian when he was out of favour at man united at a loss for his to move about 3 weeks later. Not ideal. But we learn.
On a positive note and something I have learnt, I lumped on otamendi last night when he plummeted.
So far I’ve made a loss (position closed I’m talking as some in my portfolio are down but I expect to come back around so I’m not counting them) on 3 players from a total of 32.
Kai Havertz - bought into him without really knowing anything about him, just had seen a few people say he was a good young talent in Germany. Then he didn’t play for a while and price dropped. I sold him (one of the very first players I had so when I saw red I crapped myself) and then 2 weeks later his price flies after links with Arsenal/Liverpool.
Total loss (inc commission) - 7.8%
Dries Mertens - decided to put my portfolio into categories that I could make a strategy out of, and realised he didn’t fit into my categories so just got rid there and then...his price then climbed to above my original buy price.
Total loss (inc commission) - 5.1%
Karem Demirbay - bought into him thinking the multiple links with Liverpool/Arsenal may come off (even if he didn’t move I thought I’d make something off the rumours) and then he signs a new contract...sadly this happened after I’d decided to pump more money in so ended up with a fair amount in him...will be a while before his price goes back up I think.
Total loss (inc commission) - 5.7%
First two I’m annoyed at because I had no real reason to get them - I just threw money at seemingly random players. The last one I’m not that annoyed at because links seemed strong so I bought in, but this one just didn’t work out.
It seems it’s not about winning every time on Football Index, as that would be nigh on impossible, but winning more often than you lose, and also geting the winners at a higher percentage gain than the percentage you lose per losing trade.
dannypea last edited by
Coutinho was definitely my worst with Ozil a close second...January was my first transfer window here so didn't really know what to expect... Thought i did great with VVD buying low in Nov, selling high in Dec, before his price rose stupid even after he had already signed for Liverpool in Jan... Then got out on Alexis at just the right time... As soon as he penned his deal to United at his highest price. But Coutinho.... I left in my portfolio and his stock just kept dropping. Does he even still play football??? Whilst Ozil... OMG I had him all cemented on moving away and then he signs for life at the worlds biggest underperforming institution on the day that i was away from my computer!!!!!! My only hope is he scores in every WC game for Germany and the winner in the final if i'm to recoup my losses!!!
Shambles!!!!! I've certainly learned some lessons in the transfer market!!!!!!
Was watching the game in the pub last night and somehow managed to double tap and buy max of Handanovic (ironic after earlier in the day posting about not buying GKs!) thankfully I only had £20 to re-invest, soon's I realised what I'd done I went in and instant sold him at a loss of £1.30ish :-D
These days I ignore whether my players are green / red and focus on where I think there price is going, the index has been booming for the past few months so if I have any players who aren't moving then I've bought the wrong players. Selling at a loss and investing in a player who's price is moving is better than sitting on a loss and hoping that player will recover.
ocs123 last edited by
I'm the fool who bought Ozil the day before he announced his contract extension at Arsenal. Sold a day later at a heavy loss.
I'll never buy an Arsenal player again.
I'm the other fool who bought into Ozil at his peak right before he signed the contract extension. I tried to be brave and hold out for MB and PB wins but the returns seemed to dry up so I sold him last week... oh right before he jumped by about 20p I might add!
When I was new to the index I bought coutinho near the end of his transfer saga going to Barca. Didn't understand his price would plummet Wen he went. And I invested about 25% of my portfolio in Vincent Aboubakar. He's guaranteed a move this summer I believe. But I bought him in late December, got bored waiting and sold him at a loss. I could have made so much more if I'd invested in other players in the time I held onto him. But I've learned and in the last 2months my portfolio has been flying. In 4 months I'm up around 34% on my overall investment.
Ah where to begin.
Philippe coutinho purchased after Christmas around £5 and sold at around £3.20 come March when finally gave up.
Mesut ozil bought around the high £3.50 and sold around £2 again in match.
Both of these were due to massively underestimating the impact of post transfer and post new contract impact. Fortunately these were my only 2 really bad investments and I only had 40 shares in each as opposed to my 270 salah shares
Similar to some other stories mentioned here, I was new to the index in January, invested in Coutinho and Aubameyang and wasn't expecting the price drop after the transfers were done and dusted.
In hindsight it makes sense for both, Coutinho being out of the PL and Aubameyang not being eligible to play for Arsenal in the Europa League games. Luckily they were both small holdings as I was new at the time. Valuable lessons learned though
Holding coutinho post transfer and topping up while dropping not my finest trade... sold them all for an healthy loss in the end, win most, lose some is fine I guess
CleanShirtTrader last edited by