My observations on Order Books so far...
The FIG last edited by
- It’s clear right now that prices seem volatile (in comparison to a pre sell order world) This is only due to the lack of ‘weight’ behind offers, if you compare it to the entirety of the FI market.
Someone can come in and undercut a £10 player with a 5% spread, to £9.70 with 300 futures as an offer. This then shows as a player ‘decreasing’ by 30p, when in reality - all it’s showing you is the lowest offer.
Would I like there to be 1000 or more shares behind each ‘offer’, probably. Would I like depth of market to be seen, absolutely.
Both of these would likely stop traders being scared about the price they see on screen, whichever way you look at it.
3a) More ‘weight’ behind each offer would show a more well rounded price, reflecting what more of the market is offering that player at.
It would be more reflective of the true demand for players at certain prices.
3b) Depth would allow people to see that just because trade X is offering player Y at £_, there are loads of traders offering him at above that price. On the other hand, there may not actually be that much depth as this is still such a small market in the grand scheme of things.
- How can you take advantage of this as an FI trader?
4a) it’s harder to miss ‘the boat’ on players. Lots of traders would have bitten your hand off for TAA under £10…so, what are you waiting for, bite their hands off?!
Not a TAA pump, just a popular, volatile hold ATM
4b) This is currently a game of chicken being dictated by the ‘offerers’ due to lack of weight behind each price. Take advantage of it by buying players or just ignoring it. Selling at a price you don’t want to is not what sell orders are designed to help you do.
4c) Embrace or ignore volatile prices. If you can trade them to make money, trade them. If you don’t want to or don’t enjoy it, ignore them, build a portfolio of holds who you believe will yield good divs and be higher in price 6-9 months from now
4d) Traders are currently looking for instant rewards due to 5x IPDs and the novelty of new divs. If you have a strategy and plan, don’t let the fomo of the reallocation of capital into short termism derail that plan. If your plan is short termist, revel in the current volatility
Few more notes:
This isn’t THAT volatile compared to traditional exchanges, crypto and stock markets.
as @FiSamf has stated - FI was volatile before full OBs - but only on the bid side of OBs.
When we only had MB, we saw ‘real’ 70% drops in an hour on £7 players.
Lastly, dividends are so large, that a lot of fucking players on the index will likely be a lot higher than they are now, in 3 months, 6 months and 12 months time.
Love and rockets 🚀
@The-FIG pretty much what the majority of people on here have been saying the past few days 👍
@The-FIG crypto market can make u rich index is a slow growth right now crypto market is doing well turn my £450 to 13k in 4 months 🚀🚀
I still think the basics apply (Buy low, sell high). Its still that simple ultimately. The volatility is odd and confusing, but not to be feared really. As others have said, its just been hidden previously.
I think if you were starting your FI journey right now and bought well, you'd not get why everyone is moaning/querying/confused. But its simply because everyone's figures went from green to dark very quickly and many are trying to get back to green, by listing left, right and centre at all sorts of prices. Chill for a bit y'all. It'll settle down soon.
Collymore10 last edited by
@The-FIG do you think FI are going to respond with something? Changing the 300 lowest offer etc
Absolute scenes on Twitter, people freaking out