Buy bonus

  • Can any explain this for me as I keep see it pop up and the idea of selling on the 15 to buy the next day at 730 am many thanks

  • I’m keen to understand this more too. What do people predict is going to happen on the night of the 15th and when then would be the best time to sell?

    If someone could give an example using a player that would be really appreciated

  • @NewUser161744 I personally think it’s very risky. If you sell on 15th I suspect you’ll have to be on fire at 7.30 on the 16th to buy them back in time. But I could be wrong.

  • The idea is that if you can't make use of both bonus windows through new deposits (9k max on each I think for 750£ cash back on each) , you sell up funds during this first one (it should be bit more liquid than usual with buyers going for the first 8.25%) to then buy in on the second to get the maximum 8.25% return that you can... Many clocked this early on so I think there will be a bit of rush on the market at 7:30 on the 16th, this rush will include many just flipping the rush, some will be buying now to sell on the rush ignoring holding for the 8.25%, others that want the 8.25% will race to be in first as prices rise. We don't know what lies after this next bonus. Historically bonus periods are followed by little dips ("corrections"). So it's all a bit hard to predict. I think we will keep getting offers until the market functionality work is finished.

    8.25% is a very odd number. Won't be surprised if they make it 10% to keep some positive momentum going.

    I've managed to market sell a lot of my port. Initially I was thinking il go for the max bonus on the upcoming bonus window, but I'm debating whether an end of bonus dip or full order book dip will be bigger than 8.25%...decisions to be made.

  • I’m also interested in this. I have never really utilised the bonus periods. Do people sell up leading in to one? Ultimately selling up is 2% so to buy back in you need to ensure you pay no more than 6% more to benefit?

    I can’t imagine many sell up or we wouldn’t be seeing the activity we are now.

  • Seems too high risk if you’ve got a portfolio you’re happy with. I’d imagine any sell off on the 15th would only benefit the traders who have money set aside ready to pick up any potential bargains.

  • @Archer22 said in Buy bonus:

    I’m also interested in this. I have never really utilised the bonus periods. Do people sell up leading in to one? Ultimately selling up is 2% so to buy back in you need to ensure you pay no more than 6% more to benefit?

    I can’t imagine many sell up or we wouldn’t be seeing the activity we are now.

    It's been a very unique year, but historically traders could roughly sense or know due to annual marker dates that a bonus would be coming and yes people used to try and sell up to rebuy. Much harder to do at the moment.

  • So I suppose it’s all really about timing when you sell. Sell too early and you might miss out on some of the CA that’s going on now. Sell too late on the 15th and prices have already dropped too much from mass selling that you are less likely to make a good enough profit/break even when rebuying on the 16th.

    Given I imagine lots of people will want to wait for as long as possible before selling, I imagine the morning of the 15th might be a good time to sell?

  • @Richio and I guess its only really worth it on players who have tight spreads when you decide to sell

  • @NewUser161744 I definitely feel I've sold some cheaply now, early in this bonus window, but market selling takes time as its pretty much a sell queue of old. So I doubt you'll be able to market sell on the 15th unless the market is booming, most of mine have taken 2wks or longer. I wouldn't go ISing, the spread plus commission will likely wipe out the 8.25%, if you hold div earner types they'll be the ones to grow on the next bonus, some will go up more than 8.25%, they will probably dip on bonus pay out day though, so if you want money out just wait n sell on the 16th/17th.

  • @Westy my plan was to only IS on those with a tight spread to reduce the risk of ending up with a loss when buying back in at 7:30am.

    Eg. Take Neymar. Right now his spread is 8p. Pretend his price was the same on 15th. If you sold 100 shares at £9.50 (before the mass selling drives his price down) and then bought back in even at 9.75 (assuming you’re not that quick on 16th morning), you’d still be in profit from the 8.75% deposit despite losing money in CA and commission.

    Is that right or am I talking rubbish?

  • Having sold 1/3 of my port on Tuesday hoping prices would dip a bit more I'm now paying more to buy back in and not lose my deposit bonus!

    Decided I'm happy with my port and I'm going to stop trying to predict the market, yes it could drop again or rise more than I make from the bonus!!😆

  • I got quite lucky as I had £600 cash balance from when I was drip feeding money back in that I'd cashed out on Brown Sunday. As I was going to spend £600 anyway, I've just done it through the dip and now only have about £50 left to chuck in before 15th. Bonus won't be much but I'll reinvest that and get a little bit extra as part of the phase 2 bonus. Can't complain especially as the market started jumping up after I'd spent most by £600.

    There'll be further dips in the next month after games for example so still plenty of bargains to be picked up during the bonus period.

  • @NewUser161744 yeh makes sense. But if you really want Neymar as a long term hold you risk having to buy him back over 10£ potentially.

    The tech can't handle a rush, the lucky will get good prices, but prices could jump up very quickly whilst masses of us face a glitch screen on the 16th.

    It will be interesting to see what happens.

    I'm ready to buy on the 15th if people really do dump to try n rebuy on 16th (surely they'll only do so if decent bids are in though) , but if they offer them low I'll buy them when they dump and sell back to them on the morning. il also happily just try and keep selling and ignore the 8.25% and just be ready to pounce on any future major crashes, post bonus or OB intro.

  • @Westy Yeah Ive been caught with my pants down a little bit lol

  • @NewUser161744 Thats what Ive been doing, if im in decent profit and the spreads 5% or less I will sell and try to buy back in. 5% or less spreads as a rule of thumb dont last long lol.

    Now you try and get back in at the magic number and keep the change.

  • Out of interest when you refer to the spread are you referring to the buy price and the highest possible instant sell price?

  • Bump for help please

  • @Archer22 the spread is the gap between the buy price and the IS price (as opposed to the current highest buy offer).

  • @Archer22 he's probably just referring to the onscreen spread between the buy and sell price.

    Use the website 'Index Price Alerts' and you can see the spreads in percentage terms. Very useful (and free).

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