Hi, I am new to FI and just wanted some advice/insight as tonwhat drives market moves.
I bought futures in Kepa earlier in the week @£1 and saw his price rise with all the Chelsea speculation as I was expecting. However I am suprised to see his price crash back to £1 since he signed.
Are most price moves short term or is their a logic to moves like this?
Thanks for your help
9 times out of 10 its the same mate... price rise during speculation then drop soon as they sign!!
Thanks! So is it better to take short term wins like that or does performances drive more longer term price rises?
Dividend potential is what is 'meant to' drive price. Obviously as we have seen, sometimes that's not the case. It's very rare anyone would recommend buying keepers anyway and it's not usual for keepers to stay high up, especially in the top 200 (like Allison, and only players in the top 200 can get MB). But it's all a part of the learning experience and you'll start to get it more the longer you're here :)
I personally try and stay away for the transfer spec as its too turbulant for me but some people seem to do really well out of it... everyones stratagy is different though so it may suit you once you get the hang of it... dividends normally drive the prices as you can see with pogba, was flying the last few days with all the barca spec and winning media dividends daily... now that seems to have died down and looking like he wont be in the top 3 today so people will sell off to jump on the next speculation.