New article- Trading the dip



  • Following on from my previous foresight of timing when to buy the dip, here is a look at current market trading the dip and short term strategy.

    https://www.footballtradinginsights.com/post/insight-4-trading-the-dip-by-vespasian

    As always I'm very open to feedback, looking for more writers (just get in touch) and keen for the link to be shared around if you found it interesting.

    I have a bigger piece in the works coming soon for those that wanted something lengthy to read- hold tight.

    Cheers!



  • Great article. Very interesting and I love that style of trading.



  • @Tom7471 Great article will give it a try as you say easy money most of the time.



  • Top article well written and explained.



  • I'm still going long term. Anyone else? I've ridden the covid drop, can't really see another dip coming like it probability wise except the ongoing issues caused by covid i suppose...short term must end up on going round in circles sometimes?



  • We have someone in the pipeline to do us an article on opportunity cost

    But a good example for me is Kownacki. Everyone knows now he's one of my fav players.

    Everytime I buy him... Its with the hope of a long term buy... I have no exit strategy.

    Last time I bought him he was 63p and I showed on twitter that his graph showed he rarely went below that and had been up at 80p in September.

    Then in Jan, sitting at 72p,he got a bad injury, Dusseldorf lost an easy home game... And they changed manager.

    All new information negatively impacting his value.. So i IS (and got crucified for it on twitter)

    I put that £3k into Immobile who scored a hatrick in the next game and I made all my IS loss back and divs and profit... Flipped and move on.

    I've now bought back in at 56p...Covid has given him enough time to be fit again and all my previous conviction is still there. There's the risk of relegation... So I'm not saying he's a great buy. I'm again going in as a long term buy... I don't think getting relegated will drop him massively from 56p and I have given myself flexibility to buy several thousand more by not stacking up shares too soon.

    Now long termer if they'd bought Kownacki same time as me has sat on him at a loss for 3 months during a booming market. And now I'm back on... Anything they make I make too. But if you hold for 3 years at some point he will be £1+ so youl make money.

    Comes down to time, effort etc.

    You have 160 odd players... You couldn't really monitor that many players news to be first to sell on injury/manager change etc... There's other benefits to your strategy



  • @Westy other than a couple of potential transfer opportunities like Gotze, and a few additional MB holds I’ve continued to set up for the next 12 months.

    Not a fan of short term trading and every player I held and sold when I joined has risen far higher in CA than any money I’ve made jumping in and out of players.

    I’ve learned dips come and go so I no longer get concerned with the daily or weekly red figures and I’m now up at my highest ROI nearly double what it was when I was trying to trade short term.



  • Cracking article - I am currently looking at a few players in the £1 to £1.50 bracket for my final £200 of this months salary to pop in. Have a few players in mind that follow this example.

    Now.....the impossible answer is which player to trade in :-)



  • @Vespasian32 would you class young Munir El Haddadi as a player in a dip?



  • @Millerman-again tricky... Yes... But if you zoom out a year... The big peak in the middle must be those pb wins vs Dudelange. Not a player on my watch list but should get a rise... Especially if Europa gets the go ahead to continue



  • @Vespasian32 Wise words indeed. I would have been better off IS'ing and buying back in but I am a lazy trader and adverse to paying commission. Happy to hold and he will come good again.

    0_1587559385022_Screenshot_20200422-134057.png



  • @Martyn-B whatever I dropped him youl get back at some point.. Bought 1000 this week



  • @Martyn-B said in New article- Trading the dip:

    @Vespasian32 Wise words indeed. I would have been better off IS'ing and buying back in but I am a lazy trader and adverse to paying commission. Happy to hold and he will come good again.

    0_1587559385022_Screenshot_20200422-134057.png

    I've often been advised that I should be selling and rebuying to profit the difference when predictable dips are coming, but I never really have, unless you are doing it in big chunks I don't see how the stress of timing it correctly is worth it, so I'd rule it out for long termers, but guess it's bread and butter to shorties.


Log in to reply