Hi everyone, I'm new to trading and one of my first buys was Higuain as I knew the move was imminent to Chelsea. I bought at £3.78 and yesterday he reached a peak of £4.30. However, as soon as the official transfer was announced, he plummeted to £4. Why is this? Why would traders prefer to sell than to wait for the inevitable MB dividend payout at midnight?
It’s almost always that way.
Some traders only buy for the transfer hype (with no intention of holding long term), so once they suspect that the transfer hype is about to die down, they sell.
@NewUser256709 keep for now and see if he makes an appearance from the bench, remember today is triple media so 3 places 8p 5p 2p
@Andy-M From the BBC Sport website
"As the deal was not completed before Wednesday's midday deadline, he cannot play in Thursday's Carabao Cup semi-final second leg against Tottenham."
People will have been on him for the capital appreciation through the transfer speculation and will more than likely be selling off prior to the decrease in price once the transfer was confirmed. Looking at PB i'm not sure how much chance he has of winning with chelsea playing sarri ball at the moment !
like in any market a stock will peak on some good news... the completion of a transfer is often the peak as anticipation builds up to the sell off where folk can profit nicely from their predictions by getting out at the top and the sell off will ultimately see an instant drop in that players value but that's not to say you can't continue profiting from them... The player is still likely to be in contention for the next few days media dividends and a good start to their new career will also see their stock rise... The only thing to be aware of is 'IF' Higuain turns into Alvaro Morata he will likely drop in value leaving you with a negative stick or twist scenario... So not knowing how his performances will be at his new club leads folk to selling up for profit even before they make their debut!
Selling on completion of a transfer is a great tactic on FI to get a good price (if you buy early enough) but if you really believe in a player than hold onto as long term because despite the small drops every now and again (usually after a game they haven't scored in) if they do well on the pitch they should still continue to rise.
No reason should Higuain start scoring for Chelsea he could be up to £5+ with a handful of goals?
Also if your keeping for a performance basis cavani is same age and will bang in a load more goals, I hold neither because of age.