Helping hand and idea for reinvestment?



  • Screenshot_20210219-171011__01.jpg

    Avg. Cost : £1,340.97
    Invested: £1 052,5 for two of them

    Hi all!

    So those two... TTA i bought in dec 2018, Kai in last summer.
    both of them are like 80% of my whole portfolio.
    TAA made wonders with CA(previosly i held 175) of course until day that all went down last august.
    Kai.. can't say much about him, got him for long term Div/CA.

    other 300 pounds i have some KDB T,Silva and over 300 Bednarek.

    I would like to leave FI untill next year.

    In september with faith in Fi, i kept them loosing money. Nowdays i see my port floating around -50% to 45%. January rebate gain me 5% happy for that of course.

    Now i'd like to ask, as im not mathematician, i dont keep sheets(screenshots only), im not buissnes man either. Simple trading. buy, gain, sell. Money make money so I have to move this Dead money to make more money and Hopefully be on 0 by end of this year. i cant see this happeing just by letting them sit there.

    Do any of you have some propositions on how i could move them and get some money back in trading??

    Dont want to sell them all at such loss... can't deposit more money to thighten the spread(or maybe? if so how u calcuate this?) i had idea of trying to selling half and reinvesting in bottom half. Not even £200 to counter £600+ loss seems mad and i don't feel confident enough, given the situatuion in the world and in the FI.

    Am i naive? is next 10 month gonna be old school rocketsss??
    Not even looking for profit form this just to be close to 0 balance.

    Before anyone say its gablming.. Yes i know, i knew that, the moment i had 3 "top" players holding all my money. I knew the risk, not gonna lie i was exited for the august annoucment/ i read forum seen people predicted drop and then up, up, up after some time bla bla bla...

    Question stays same. HOOOOOLD like Mel Gibson in Braveheart? or what are the other options for situatuinon like this?

    Thank u all!



  • @FilipowskY I’m in a similar situation, no option but to hold really, no point taking the 300 really if losing 700 already, you’ll get divs from Trent anyway



  • If it was me, in your predicament, I would put all my dividends into Kai and try to deposit a small amount each week that I could afford and put that off Kai as well.

    By doing this, Kai's average price will drop and when the market picks back up, Kai will get a rise, especially when he hits form. I would let his price get to a 22% profit margin and then cash out that profit and start the process with Trent. With time you will get out of both holds with profit.

    Moving forward I would diversify and spend no more than 3% of my overall stake in any one player.



  • @Karl 3% in one... 🤔 overdone that a little 😅

    Thanks for that!



  • @Karl If I was @FilipowskY, I would only invest more in Kai if I thought Kai was better value than other players.

    The idea of bringing down the average place is just tricking yourself. If you buy 50 shares at £6.47 and then another 50 at £1.36, you have 100 shares at an average of £3.91.

    If the price rises to £4.00, you have still made a loss on the first 50 shares and a healthy profit on the next 50.

    If a trader thinks Kai will rise by 10% and Pogba will rise by 20%, he would be better off buying Pogba regardless of who he currently holds.

    Buying a different player would also diversify a bit.



  • @Honeylight

    Can't agree with this enough. What you've already paid for a player is a sunk cost. It doesn't matter if you bring the average price down, you still paid the same for those first ones.

    Any new purchases should be looked at completely independently of who you already own. You should just be looking for the best value player each time.



  • @Honeylight Kai is severely underpriced presently (more so than Trent) and as @FilipowskY has an average price of £6.47 on him with little money to add to the portfolio then I would just tip away at Kai first to bring his price down as far as I could before thinking about buying anyone else.

    To say he would make a loss if the average price is lower than the selling price is not correct, as profit is profit no matter what price you paid initially.

    If there was consistent money going in, then I would start to diversify the portfolio as you have suggested but I believe Kai is an extremely safe long-term hold and I would want to release a percentage of funds that are currently tied up in him as quickly as possible.

    If he buys someone else and their price goes down, it will just add to an already stressful situation.

    Each to their own I suppose but I would never put 80% of my stake in two players, as what has happened here is a prime example of what happens when it goes wrong.

    Hopefully, a lesson has been learned and a more diversified portfolio will be considered next time 👍



  • @GeoffS said in Helping hand and idea for reinvestment?:

    @Honeylight

    Can't agree with this enough. What you've already paid for a player is a sunk cost. It doesn't matter if you bring the average price down, you still paid the same for those first ones.

    Any new purchases should be looked at completely independently of who you already own. You should just be looking for the best value player each time.

    Have to disagree with you here Geoff. If you are prepared to buy a player at X and his price lowers to Y, and he has the same potential yield (more or less) over a long period of time, then it would be counter-intuitive not to buy more to lower your average price and increase your shareholding.

    It may not be an ideal strategy, but one I would prefer, so as to release the funds quicker, than having to wait for Kai's price to exceed £6.47 again. Once Kai settles into life in the premiership, I would be expecting big things from him.

    I suppose this is why markets fluctuate, as many different people see opportunity in different ways 👍



  • I just checked my holding in Kai and the highest I held him at was £5.40. I have been slowly topping up on him over the past months and my current average price is now £3.04. He is still within my player allowance for his category of player, so I am happy to keep topping up.

    Taken that I won't be fully selling Kai until 2027-2028 ( I know I have to rebuy ) then I feel it prudent to buy more of him at £1.11 now so as to reduce my average cost and increase my shareholding.

    If @FilipowskY is a long-term holder as opposed to a short-term flipper, then averaging down is definitely the way to go. If he is a short-term flipper then he can take the risk of buying other players which is a perfectly fine strategy in an upward trajectory market. Taken that we haven't started that fully yet, then IMO averaging down is the best way to go so as to prevent further drops in any new players.

    Only my tuppence worth but best of luck with whatever way you go @FilipowskY

    Good points raised guys 👍



  • @Karl I don't hold Kai but I do TAA and consider him underpriced. What leads you to think that Kai is even more underpriced than TAA. The latter seems more integral to their team than the former but would be interested to know your view.



  • @FilipowskY personally I would look to reinvest any dividends you make away from these two, as they already made up a massive chunk of your portfolio,

    If you believe either of them are currently underpriced, you could try to bring your average price down, but I would definitely not do this by increasing your hold in either, as you are in danger of throwing good money after bad if you believe there are better options elsewhere. What I would do, if you still believe in them, is look to sell a few each time they spike, then put a replacement bid back in to replenish your stocks, at a lower price. In this way, you can start to get a little bit of a cash pot to use elsewhere, whilst not having to take a huge hit on a player you believe in.

    To some extent, what you have paid in the past is irrelevant; you cannot change that now and you need to make sure that stubbornness doesn't cost you more money by driving you to hold or even keep topping up if there are better options elsewhere.

    Specifically on your two holds, I think TAA is a decent long term hold, although his price is being affected by Liverpool's hit and miss form so far this season. His style of play under the current matrix will always mean he is a good hold for PB and this also means he can be an easier hold to trade the spread on, as he is more likely to have periods of demand.

    Kai would worry me more, as he has just not shown much for Chelsea yet. However, he is young and still settling, so certainly not the worst hold in the world right now, but not one I'd be looking to put more in to right now.

    As for other options, I still think Kane is a good hold at his current price, especially if you believe the Euros will happen, both for the mid to long term and for PB and MB on any given match day.

    As for a speculative punt, I have bought some Federico Valverde this week. I got on at 38p, but not sure what you could get matched right now. Only young, at Real Madrid and been a couple of light links to Man U this week. Doubt anything will come of the Utd rumours, but I've figured at his age and current price, he could virtually pay for himself with one decent performance on a gold day and any speculation about a transfer could see a nice percentage return; I'm generally not greedy and usually move players on at a 20% profit, after commission. In Valverde's case, that means I'd need 48p and actually that still seems too low for me, but I fully expect him to exceed my normal target, although I may need to be patient with him.

    I suspect there are many better options out there, but depends what sort of platers you are after. Ultimately, don't be too swayed by others as you need to be comfortable with what you are doing. Therefore do a bit of your own research too, only spend what you are comfortable with and good luck!



  • @NewUser469373 Hi There, I agree with you that Trent is underpriced and to be fair I think every player on the index is also underpriced based on the long-term prospects of the platform.

    I just think Kai is a better player than Trent, but that is just my own opinion, and as you can see from @Mintyfresh post above he doesn't really rate Kai presently. This is what makes a market work so well.

    As stated above, never listen to anyone and do your own research as it is far more beneficial than following anyone else's advice.

    Everyone's strategy is different and because of this, there will always be different opinions regarding the same player.

    My advice (Don't listen to it 😜) is to keep holding Trent as he will be back to his ATH in time. How long I don't know, but if you can hold and forget then he will come good.

    I see a few of the lads above don't like to average down on holds and again that may be a good strategy for them but you need to look at your own portfolio and come to your own conclusion 👍

    Best of luck.



  • I had a similar issue, but I decided to sell up and invest in players who were cheap but could win divs also. Went with Bale, Wilson, James, CHO. People slated me for Bale but he was 30odd pence at the time and has already made 12p in divs (per share ofc)

    Sorry to say but if I were you I'd sell both now, TAA could rise but you won't get your money back.

    Sorry bro



  • @Deano4dawin I can never understand why anyone would sell a player at a loss. Personally, I have zero tolerance for selling anything at a loss. (Maybe that's my OCD 😊 )

    Why do you think TAA will never reach £7.29 again.



  • @Karl to buy somebody who will make more money for them with the money they sold for a loss on . Seems logical to me



  • @Bugsbunnies How do you know they will make more money.



  • @Karl The player that you made a loss on may not suite a new matrix for example . not put putting more money into a dead duck . Cut your losses and invest in a player that has a much better chance at making you money going by stats and their history etc



  • @Bugsbunnies To be fair, to call Trent and Kai "dead ducks" is a bit harsh 😁

    It comes across that day trading is preferred to investing which is perfectly fine if that's your strategy and it works for you.

    Personally, I wouldn't sell either but again that is a strategy that works for me.

    I have detailed a link below on the pros and cons of averaging down for anyone who may be interested, as I am a little surprised that many don't find it beneficial.

    https://www.investopedia.com/articles/stocks/08/average-down-dollar-cost-average.asp



  • @Karl im not calling them dead ducks



  • @Bugsbunnies Sorry got you mixed up with the other poster 🤦‍♂️


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