Is capital appreciation dead?



  • What are traders opinions on the future of FI when it comes to capital appreciation? I have always implemented a strategy that heavily involves buying players for capital appreciation, and this strategy has always proved successful for me. However, with the market in its current situation, if things carry on the way they are then this strategy is going to pretty much impossible. I don't want to pull my money out of the platform, as this is clearly just a rough patch on FI at the moment, one that i'm prepared to sit tight and wait out. I would however have more confidence in keeping my money on the platform and waiting this current situation out if i knew there was going to be a place for implementing a capital appreciation trading strategy on FI going forward. Is buying players for capital appreciation now a thing of the past? What are peoples thoughts?



  • There'll always be a new generation of players who rise and a new transfer that sparks interest, etc.

    CAP isn't dead... it's just that the market is hurting.



  • @NewUser46330 in market downturns or flat periods- dividends is king. It keeps the coffers ticking over. Once the market settles, players could comfortably double in value over the next 6-12 months such is the room for growth afforded by the dividend increase. But this has been discussed multiple times. Let’s not start a new thread about it.



  • There is still plenty of opportunity I believe.. Some adjustments in trading habits I think are probably necessary to make the most of CA opportunities under the order book system... There will be regular spikes to sell on and then lulls to buy back on. Previously I just bought and waited for them to go up 100% and sold. Now I think I'll be aiming to make 20% on them five times a season to try and produce the same kind of result..

    There should be a lot of players who also will rise consistently due to their dividend returns, so there is still the option to buy and sit if they are the type of player that produces a good yield comparative to their cost..



  • Just some thoughts, using tonight as an example.

    Alcacer scores 2, offers 20p IPD, and drops in price.

    Why?

    Because 10 × IPD has put everything on its head.

    How?

    People are doing what I have done. Under cut the buy price to sell ineligible shares, before refreshing to claim IPDs through bids.

    Surely that cant be easy?

    Impatient sellers (refreshers) will Hoover up any half decent bids to instantly liquidate cash in order to facilitate their own, less economical, refreshes. This allows decent bids placed by market sellers to promptly replace those shares and look forward to big divs tomorrow.

    So to clarify, the buy price drops as patient refreshers dangle a lower carrot.

    The sell price drops as less patient refreshers accept the reasonable bids placed by new buyers, or refreshers who are ahead of the game.

    What's the result?

    2 fold.

    Savvy traders execute a very easy, very profitable trade.

    Those who lack the understanding go to twitter and start flinging these 😱 and these 😫 and even these 📉 all over the place

    What's the end result?

    2 fold

    Savvy traders make another big profit.

    Others experience panic and disillusionment.

    There will be less of this from tomorrow



  • @MickTurbo perfect description of what I was trying to explain to one of the 😱 brigade on Twitter, who couldn’t comprehend Jota going down in price when he scored on Monday night



  • I am finding capital appreciation in the lower end quite easily, no doubt helped by the IPD promo, so will be interested to see when 5x ends. It's been pretty easy to buy players at a discount and sell as soon as they score. I had Quaison at 60p in the middle of last week and he went at 83p as soon as he scored. Got Mollet for 40 something pence and he went at 63p when he scored a right bobby dazzler against those giants of French football Angers.

    Obviously both short term flips more than capital appreciation, but I think we need to look at capital appreciation in a different way. The action is all between the spreads and it's much more about taking opportunities when they come up. Those that are happy to do a bit of work will find it easy to take these. That said, it only takes 10 seconds to put a low bid in, (then it's a waiting game for it to be filled). Once it's filled it's only another 10 seconds to stick a sale offer in, which, if you've picked a decent player at a decent time, you could see it filled as soon as they do something decent. Decent!

    Not quite as easy as buying, sitting back and waiting as the platform grew, but then that was always way too easy anyway.



  • @MickTurbo said in Is capital appreciation dead?:

    Just some thoughts, using tonight as an example.

    Alcacer scores 2, offers 20p IPD, and drops in price.

    Why?

    Because 10 × IPD has put everything on its head.

    How?

    People are doing what I have done. Under cut the buy price to sell ineligible shares, before refreshing to claim IPDs through bids.

    Surely that cant be easy?

    Impatient sellers (refreshers) will Hoover up any half decent bids to instantly liquidate cash in order to facilitate their own, less economical, refreshes. This allows decent bids placed by market sellers to promptly replace those shares and look forward to big divs tomorrow.

    So to clarify, the buy price drops as patient refreshers dangle a lower carrot.

    The sell price drops as less patient refreshers accept the reasonable bids placed by new buyers, or refreshers who are ahead of the game.

    What's the result?

    2 fold.

    Savvy traders execute a very easy, very profitable trade.

    Those who lack the understanding go to twitter and start flinging these 😱 and these 😫 and even these 📉 all over the place

    What's the end result?

    2 fold

    Savvy traders make another big profit.

    Others experience panic and disillusionment.

    There will be less of this from tomorrow

    Case in point:

    b114551b-8148-45bf-a41e-cbfcf9d6f2f7-image.png
    5fb8fdd2-25db-44e2-8069-227098df8dab-image.png

    Some trader me.



  • @Yellow Nice bid, hopefully he will get the assist div's too but doubtful



  • @Yellow good effort.

    To put it another way, tonight I refreshed an almost £4 defender, one of the best PB holds around, with 8p incoming for top DEF, a 21 year old beast, like he was some 34 year old, 28p number 9, playing at Brest.

    Would I do such a thing tomorrow? Of course not.

    Would I have done it last month? Of course not.

    Cos in any other circumstance he would need 7 goals and an assist in a single game in order to pay 30p in IPD. Tonight he did it with 1 of each.

    Of course this throws normal trading principles out of the window.

    I've smashed the divs this month, but I'm glad it's coming to a close. I think the only danger was being careful not to end up with a portfolio full of Ferrari, Caprari, Letizia and Caligiuri



  • @Yellow said in Is capital appreciation dead?:

    I am finding capital appreciation in the lower end quite easily, no doubt helped by the IPD promo, so will be interested to see when 5x ends. It's been pretty easy to buy players at a discount and sell as soon as they score. I had Quaison at 60p in the middle of last week and he went at 83p as soon as he scored. Got Mollet for 40 something pence and he went at 63p when he scored a right bobby dazzler against those giants of French football Angers.

    Still going on about those bleedin Giants again i see



  • @MickTurbo I wish I could get my stella head around that right now. However I did take your advice regarding paco and he got 3 goals in the promo window so I'm happy with that pal. Cheers



  • @AndydfopT My beer head is sufferig a little now too! Maybe its a good idea that trading is suspended at 11pm!!


Log in to reply