Minimum Amount of Futures
What is the minimum amount of Futures that you would buy in a player?
Personally, 100 as don’t see the point of buying any less, having said that not everyone can afford 100 Neymar and the likes so buy whathaver amount you can afford really, risks and returns per share will be equal anyway
Made a mistake when I joined just buying 3 or 4 and quickly realised that was pointless
I'm opting for 10 now but considering going to 20 moving forward.
I couldn't afford 100.
I’ve only got 1-3 atm (financial restraints) but I wouldn’t say it’s pointless. I’ve made dividends and then made 10% back on my portfolio. Pointless in terms of making decent money back but it’s helped no end. I have such a clearer understanding of the platform and what drives the market, what helps increase prices and reduces prices. I think buying low to start is mostly risk free and educational. At this point now I’m in a similar position in that 100 shares isn’t possible. But I think it should be down to what kind of returns people are happy with. So for the time being, if I bought 10 shares in a player and it went up 50p and I made £5 I’d be happy. Obviously as I invest more I’d want more back. I think 10-20 is a good point, then it’ll be between 25-50 and then towards 100 and just keep building up
I'd be over the moon with a fiver as well lol
For me I need to have a decent amount (50) to make me think about a player enough.
When I started it was too easy to buy 5 or 10 of a player without doing my homework and thinking about it. When it gets to 50 shares then I slow down and make better decisions.
It's all relative anyway. You should only ever look at the money you have and are willing to risk. Just because someone has bet £10k and you have bet £100 doesn't make a 30% rise any more or less impressive.
@Comrade It's the consideration you should consider rather than the number of shares. If you're just buying equal number of shares in each player you'll find your portfolio is massively skewed to the large handle players and so not well balanced
I think it totally depends on what your level of investment is. For me, I've been more successful recently by just accepting the fact that I will only make a few quid (sometimes pennies) on decent trades and not being greedy and spreading myself too thin. Diversification is really important whatever the level of investment. I now buy 10 to 25 futures depending on their price and my confidence in them, and think along the same lines as @FranklynMary that I should be able to build this up over time.
To me, the number by itself is irrelevant. It's all about how it affects your portfolio, the reasoning behind your purchase and, more importantly, your handling of volatility.
If you switch from buying <5 shares at a time to buying >100, then your portfolio's weighted heavily towards to a small number of players. If they rise, it looks great. But, if they fall, panic can set in and you start making rash decisions. This is where a lot of money can be lost.
Humans are stupid. Find a level, stick to it, and if you want to upscale then do it wisely.
Say you currently hold 5 of each, but want to start upping your investment to 100 at a time
- Reassess your portfolio- if there's people who you wouldn't by again, consider selling (though this should be standard practice already)
- Spread your investment across the remaining players over time to help keep your overall holdings balanced, rather than piling in to one or two players, by topping up the numbers you already hold by a few each.
- When you get to c.100 each, or whatever your original (carefully planned, obviously) balance was, crack on at the higher level.
I think this is all down to strategy... what you want from the game and how you want to play it...? If you want long term hold then diversify and have less of more... if you want quick flips and to 'play the shorter game' then larger stakes in those that are undervalued who you see rising?
I actually have smaller numbers in the bigger players like Messi, Ronaldo, Neymar, Kane, Salah etc simply because they cost more... and that a crash could be more expensive to my portfolio... But by having them... you have a better chance (75-80%) of winning the daily MB which means whatever the amount you have in them your account is continually being topped up on dividends that week.
So whilst I'm holding 20/30% of the top eight players in my portfolio.. another 30/40% is at the bottom end... Buying more in less risky players that are around £1.00... These are players that might nick the odd PB but really are being held for growth in value... then finally 20/30% in the middle range player... The ones that are in form, eyeing up a move... not quite world class but doing well at their respected clubs and players that we all know and are willing to jump on.... So on that basis....split in to a diverse portfolio whether you are investing £500 or £5,000 or even £50,000 it spreads the level of risk and allows you to earn from all areas MB, PB, growth in val. I think this is more important than saying 'what minimum hold you have in a player' because I actually still own ONE Marouanne Fellaini and he's an integral part of my complete portfolio!!!!!!!