Sudden price drops in highly priced players



  • High guys relative newcomer to the index and still trying to feel my way in. People have been really helpful on these forums so far so another question if I may 🤔

    I like everyone else have noticed sudden price crashes for Keita and the Pogba on successive days of about 50p after steady growth for weeks. Now i obviously understand that markets fluctuate but I'm guessing something has caused such a sudden plummet and was wondering what it could be that made a large number of people sell their futures? I hold both players and have no concerns about my investment because I have made a tidy profit even taking into account the price crash, I'm just curious what could have created it for future reading of the market. Many thanks in advance for any help or advice 😀⚽️👊



  • I really dont understand the Pogba drop, the Man U story is not going away anytime soon, definitely keeping mine, pretty much guaranteed buzz all year.



  • There can be many reasons - In the case of Pogba my guess is people taking profit and because they think his media buzz will drop off from what it has been back to his normal level (still very good) now it looks like he is staying at United. In the case of Keita it is definitely profit taking as he rose so quickly and may not produce much in the way of dividends.



  • It seems like every day on here (and i don't blame the newbies) that there's a new post concerned about 'a sudden price drop' but please note this is the nature of the beast, what is supposed to happen and nobody says it's 'guaranteed returns'...

    More than likely when a players price soars it is because investors are putting money in to them which drives up their price further more... This is usually done after a player plays well or if they are in the news for something like wanting a transfer etc...

    When a players value drops (and i'm guessing here) I'm thinking a lot of the time it is because either they play poorly, or they are not in the news and/or people who own shares in them are selling them on the basis that they are happy with the level of profit that's been made? Some will see the fall and it will knee jerk them to panic sell resulting in larger crashes... But as mentioned prices of all players go up and down... key is not to panic when they go down and try and keep a level head when they go up!!



  • 47p down today.. Does anyone think there is value in purchasing Pogba?



  • @DCoops9cfc there's always value in purchasing Pogba... he's a media buzz whore and that 'guarantees' income.



  • @dannypea Do you think the price is likely to carry on dropping? As has been eluded to in this thread, these stories aren't likely to go away are they.



  • @dannypea Yep, look at his price graph. There's a drop every now and again for a while and then eventually a huge price rise. You waste money on commission, spreads and missed dividends trading in and out so it's better to just be patient.

    He's returned 97p in divs this month alone I think so it's silly to sell with all the triple media coming up and an inevitable Mourinho sacking.



  • This post is deleted!


  • Looks like it was just market manipulation. Jumped straight back up in 15 minutes. Probably a group listing a lot and then buying at a discount. Another reason not to sell high value players.



  • Keeping pogba. MB bread and butter



  • @PB-man

    I highly doubt it's to do with a group and if it is, they did a terrible job.

    His highest price was £9.82 meaning they would have to sell at a spread of roughly 60p +2% commission which is another 20p.

    His lowest buy now price was £9.35.

    This means that even the first seller would have bought back at a higher price.

    As others have already said, this was a combination people claiming their profits and others panic selling.





  • @NewUser119698 I think what he means is that a group listed a large number for sale in the queue expecting that there would possibly be a lot in the queue before their own. Then bought more at a cheaper price and then took their own back out of the queue so didn't lose anything but got more pogbas at a cheaper price.

    Element of risk because their pogbas could have sold in the mean time and they would have lot out.



  • and his price is back up!! Wish I had the available cash to buy more than the three extra futures i picked up when he crashed 😂



  • @Stevo Exactly this



  • @9stevo said in Sudden price drops in highly priced players:

    High guys relative newcomer to the index and still trying to feel my way in. People have been really helpful on these forums so far so another question if I may 🤔

    I like everyone else have noticed sudden price crashes for Keita and the Pogba on successive days of about 50p after steady growth for weeks. Now i obviously understand that markets fluctuate but I'm guessing something has caused such a sudden plummet and was wondering what it could be that made a large number of people sell their futures? I hold both players and have no concerns about my investment because I have made a tidy profit even taking into account the price crash, I'm just curious what could have created it for future reading of the market. Many thanks in advance for any help or advice 😀⚽️👊

    Ignoring Pogba which has the feel of market manipulation. There's a few reasons this can happen:

    1. Profit Taking
    2. Expensive players mean that there are more futures floating around, which means there are more to sell which means more scope to drop
    3. Opposite of FOMO - fear of being left holding the baby. If you suspect someone may be over-priced and looks like he might be dipping then you might want to sell to avoid being the one left holding the futures when they hit the floor.

    Its why you need to be a bit wary before buying someone who has just jumped in price in normal market conditions (these aren't really normal conditions as everyone is jumping atm).



  • This post is deleted!


  • @Stevo said in Sudden price drops in highly priced players:

    @NewUser119698 I think what he means is that a group listed a large number for sale in the queue expecting that there would possibly be a lot in the queue before their own. Then bought more at a cheaper price and then took their own back out of the queue so didn't lose anything but got more pogbas at a cheaper price.

    Element of risk because their pogbas could have sold in the mean time and they would have lot out.

    That's a ballsy tactic, an interesting loophole...



  • I’ve been doing a bit of thinking about this! And maybe I’m getting confused! But here’s my thoughts.....

    1 to drop 50p it would mean 5000ish futures hit the market, at the 100ish to a penny standard.

    2 that’s nearly 50k in one go

    3 u can’t buy a future when u have one for sale in the same player. I tried this early with a 20p player and took the penny hit in instant sale afterwards. Big of me, I know!

    So we must have at least two people that have 50k of pogba in accounts, putting them all in, hoping no one buys them and then, if you want to make money buying more at the lower price.

    To risk 50k you’d want to be making a good return! Just say it’s 5% that’s 2.5k! That means you’d have to buy 500 shares or around 5k from a separate account and then instantly take your 5000ish shares off the market.

    This would then mean he would revert to his original price, but it appears he is still a few pence lower than he was.

    I maybe a bit out with the figures, but if something like that happened, surely accounts would be closed/shut down as with normal bookies??


Log in to reply
 

Looks like your connection to Football Index Forum was lost, please wait while we try to reconnect.