My FI Journey - For new traders

  • I thought it may help new and some existing traders if I documented my journey with FI (although brief as it may help).

    I work in the financial sector and started looking at FI this time last year and was not convinced so did not invest any funds until May 2018. I decided to treat it like other financial investments which meant thorough research and a buy/sell plan for each player. Some players were bought as potential 3 year holds for dividends and some for potential short term flipping. I also believe that you have to have a personal growth target that you deem acceptable for the risk taken. Everybody will have a different target in mind as each trader can use different strategy's some are far riskier than others. However it is not for me to say what is right or wrong just that you should have a plan and it should be realistic!

    My plan was to buy top players initially and then add lower priced players as I went along. I wanted to achieve a good dividend return and wanted a 25% per year return on capital to justify both the risk and time involved.

    My deposits were:
    May: £1,550
    Jun: £4,450
    Jul: £2,000
    Aug: £3,000
    Sep: £250
    Oct: £2,750
    Nov: £1,000

    Total to date £15,000 - there have been a few £10's from referral's and some 10% deposit bonuses.

    Currently my portfolio is worth £19,935.75 and my cash balance is £459.02 so totalling £20,394.79.

    Of the £5,394.79 profit just over £1,000 has come from dividends and £1,400 from trading players the rest is growth in the players I hold.

    My current portfolio is 41 players and is made up of the following:

    900 Futures in 3 young players yet to see growth
    100 + Futures in each of Neymar, Salah, Pogba, Hazard, Kimmich, Sancho, Dembele, Mbappe, Sterling and Kane
    25 - 100 Futures in a range of other top 100 players

    As can be seen I have taken a very cautious approach and have benefitted from the recent increase in the top players prices. However what I can say is that I have seen steady growth month upon month and have never been in the red. My dividends have increased each and every month (Am already over £200 this month).

    The lessons I have learnt:

    Be realistic - If you target say 20% p/a you will probably earn much more but if you target 100% p/a you may lose money.

    Dividends - Only a handful of players actually earn a good dividend return, holding these players allows you to reinvest the dividends in other lower priced players who have the potential to earn dividends in the future and so see capital appreciation.

    Rome was not built in a day (be patient) this is not like everyday gambling. Some people are here just to gamble which is fine but if you are treating this like an investment do not let that side-track you into buying and selling to often.

    Fundamentals are the key - Cheap players are cheap for a reason and expensive players are expensive for a reason however have a plan for each and every player you purchase. Just like the real stock market you must remove your rose tinted spectacles and get off your soap box - just because you like something it does not mean the wider world does - when buying players think what the world sees not yourself.

    Final thoughts

    My plan was and still is to make a profit over the medium long term and I think about it like this:

    G & A is gambling which is fun or you could say its like buying penny stocks.
    Young players are like AIM companies which may make it to the big time but more often do not
    £2 -£5 players are smaller FTSE companies that cannot compete with the big boys but some do break out
    £5 - £10 players are household names that do what they say on the tin
    £10+ well that's Amazon/Apple/Microsoft etc - everybody wants them or there product but sometimes buy cheaper products due to price.

    I understand we all win and lose money on here in differing ways but we also all benefit from new traders joining and therefore I thought a real life case study may be of help.

    Good luck to all for the rest of 2018 and best wishes for 2019

  • @Fletch good post pal! Credit where it's due!👍

  • @Fletch Good post. Your comments in other replies always come over as solid reasoning and advice. Sports bettors can learn a lot about discipline from professional traders.

  • Refreshing,informative 👍

  • Excellent .. well done on the profits.

  • Great post. I entirely understand people’s general desire to not share too much info on their portfolios when posting on here (for a variety of justified reasons), but it does mean we miss out on the specificity of these sort of posts. Thanks for your advice.

  • I would just reiterate patience & and having a plan (& largely sticking to it) are the 2 most important ingredients to success. Try not to panic buy/sell, even though it's often tempting to do so & try to ride out market fluctuations rather than just following them. Currently high priced players are in demand, partly due to share split anticipation but that means lower value players are being dumped to free up funds, creating plenty of decent bargains that will show strong profits when market sentiment changes. So don't be afraid to buy when others sell or vica versa, understanding how the market works is a slow but valuable learning experience.

    Great post by the way.

  • yep me too... Patience is key... setting realistic goals and targets and diversifying your portfolio enough to win from all sources!!!

    Good detailed sensible trading!!! I think anyone who follows Fletch's theory (and sticks to it) will do ok!!!

  • Great post Fletch. 🙌🏻 It’s always enjoyable hearing ppl’s FI journey and an honest account of their profits and mistakes. Exactly right when you said “expensive players are expensive and cheap players are cheap for a reason”.

  • As a new trader 4-5 weeks thanks a great post, I’ve been trying to develop my strategy in a similar way, I’ve not managed to work out % levels to take a profit yet. First three weeks held my own very small gains and losses last two weeks 8% growth 33 players held, with about 17 up. So still learning and posts like yours are so valuable thanks

  • @NewUser199737 go for 10% a month... or 20% a quarter... then just keep reviewing... Initially i set myself 25% per quarter to return 100% after Y1 but with re-investment have never really hit that although i still aim for those returns (i'm nearer 60-70%)!!! Maybe 100% returns from your 3 year bet is a more sensible target but I would certainly structure your targets in place so you have some sort of theory to why you are investing in the first place!!!

  • Gonna bump this. Well worth the read @Fletch

  • Hi All,

    I looked back on my now 8 month old post and thought an update may be in order as I have today reached a significant milestone. By posting this update it will hopefully help new and old traders alike who may be thinking about strategy.

    Through the last 8 months I have not changed dramatically in how I invest and the type of players I invest in - yes there has been a share split and dividend changes but the fundamentals have not changed. I still invest in top players and look out for lower priced players who I believe can earn dividends.

    I continued to drip feed deposits (a further £5,000) and reached £20,000 of deposits a few months back and do not currently intend to deposit any further funds.

    Today my portfolio has reached £40,000 so I have now doubled my investment . Of the £20,000 profit, £3,700 has come directly from dividends and there is now a constant stream of dividends coming in which allows me to grow the portfolio or maybe in the future withdraw as a tax free income.

    My current portfolio is 46 players and is made up of the following:

    500 Futures in Neymar, Salah, Kane, Sterling & Rashford
    400 Futures in Sancho & 350 in Havertz
    300 Futures in each of, Pogba, Kimmich, Mbappe, Jesus, Tah, Brandt, Goretzka, Nandez, Zaniolo, Foden, Rodrygo, Neves, Trent AA, V Junior, VVD, Carrasco, Hudson-Odoi, Dembele
    150 Futures in each of, B Silva, B Fernandes, Chrisante, Eriksen, Pulisic, Ballo-Toure, Bamba, De Bruyne, Messi, Jovic, Verratti, Greenwood, M Gomez, N Pepe, Nelson, Brewster, Mahrez, R Vieira, Loftus-Cheek, Castagne,Kroos

    My cautious approach has not changed and the majority of the portfolio are proven dividend winners alongside some future potential divided winners. Lots of the lower priced players which I own 150 shares in were bought in batches of 1000+ but sold down as soon as profit could be taken and then profits reinvested in higher priced players.

    I do not look at the Index as a get rich quick scheme but more of a get rich slow process. Personally I do not now see much value at the lower end of players as I really cannot see them winning dividends in the next couple of years so what is there real value!

    I believe the higher priced players are actually good value as the majority do earn you money and FI will have to increase dividends in the future (I believe mid December) and then these players will grow the most. Therefore they are a low risk bet in my opinion.

    Finally when I joined people said I had missed the boat but obviously I had not - so if your new I would not worry - the top players may look expensive but they are not because FI will always need to underpin there value by increasing dividends or by share splits. New young stars will emerge and grow dramatically in price, however avoid the dross in the middle, they may look cheap but they are cheap for a reason!

    Good luck to all for the rest of 2019

  • @Fletch
    A compelling read mate.I enjoyed your insight to FI.
    It's nice read about alot of you guys that have been on FI for a while now and your strategy.
    Thank you

  • @Fletch well done bruv...may have skipped & missed but have you withdrawn at all ❓

  • @Friedeggs

    Not took a penny out yet, I am expecting a dividend increase hopefully in December as FI will need to do something then to encourage traders not to withdraw for Christmas. Also I expect yields to be lower with higher prices so would seem the perfect time.

    If that happens and prices jump I may look to take back my £20,000 stake then.

  • @Fletch good read i have a similar strategy to yourself and all the same players although i only changed everything at the end of last season and im spread a bit thinner over more players. Wish id seen your original post 8months ago. However its very reassuring to see the results and has only increased my confidence in my own portfolio.

  • Cracking read.

    Congratulations @Fletch

    We might disagree on a whole bunch of things over the months, but it's great to hear that you're smashing it.

    Onwards and upwards!

  • @Fletch Always the yardstick of logic and sense on here, backed up by profits and a successful strategy. Kudos

  • @Collymore10 in case you didn't see this thread

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