Don’t sell today unless you really have to!!
If you are selling because you think the market is in meltdown and FI will fold....don’t! It is not a crash in the traditional terms, it is a redistribution of assets. Everything you sell is going to someone else, who is probably heavily invested in the product, FI are raking in the 2% sell commission and the market will keep going. Only difference is, you’ll have lost a packet 😢
@Ecniv great point, you can only lose by selling now. Unless of course you invest back into value players
I just don't get it.. portfolio has taken another massive dent in the last few hours after being relatively stable throughout the day (still declining but nothing shocking) - is it just another wave of panic and people being sheep? We're on the eve of football returning non stop till god knows when.
@NewUser346198 FI today reduced the price that we could offer players at. Before yesterday it was 1p below the buy now price. But today it moved to 1p above the bid floor, causing traders to under cut each other in panic.
Selling does have a place. When the market goes down it’s about increasing your share count.
Imagine Kemmich and Fernandes were both fit and both had a similar yield and both originally cost £7. If one later costs £6.50 and the other £6, doesn’t it make sense to sell the £6.50 player and buy the £6 player?
@Evoke89 yes quite right, I meant now is not the time to sell and go. Selling to reinvest could work out well
@Evoke89 it sure does!
@Evoke89 Yeh but how do you sell the 6.50 player without making a massive loss due to the way the OBs are set at?
But you aren’t making a loss, you accumulate more shares and more shares = more divs. And then also if cap app kicks in again thats more ££ if they both return to £7. In that example you have
6.50 - 0.13 = 6.37
6 + 0.12 = 6.12
6.37/6.12 = 1.04
An extra 4%. At least i think that’s the correct maths.
I guess Rashford vs Kane is a good example (although i don’t hold Rashford and Kane is a better hold), but look at future growth assuming all things equal.
Both were in the £5.20 - £5.70 range most the time.
Kane never dropped below £4 but Rashford was down at about £3.50, so if all things were equal it would make sense to sell Kane and buy Rashford. But in reality that’s not true, because Kane is a better hold.
Share count is greater than £££ in a crashing market, unless you are planning to withdraw. Likewise, £££ is greater than share count in a rising market.
You can also look at it like this (commission removed fore simplicity):
If i have 100 Brunos and sold at £8. I have £800.
If i rebuy Bruno at £7 i now have 112 Bruno + £4 balance.
If i sell again at £6 i now have £676
If i rebuy at £5 i now have 135 Bruno and £1 balance.
If Bruno now goes back to £8 i am 35% better off. If Bruno does not go back to £8 i am still earning 35% more divs for the same initial investment.
Share count = £££. Sell high, more £££, buy low more shares.
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AndydfopT last edited by
@Evoke89 flawed argument , I think rash is a better hold lol