What is your ideal strategy?
I have just started investing more into Football index. Before last month i had probably £20, now i am up to around £400. Ive gone for the top players mostly for the dividends. Now thanks to the SS, the growth as well!
Through the dividends i earn, would you suggest building it up then topping up my 'top players' whenever i can or start buying small >£1 that have potential to grow?
strategy goes out the window - no one can sit on a balance waiting for it to be enough to buy Neymar, when they afford a cheaper player lol.
i.e. strategy (pre split) wait till my divs hit £24 to buy Neymar... I promise
Win £8 media buzz... shit Barkley just scored !!! buy!!!
Hi I decided pre SS to employ a trading strategy similar to my trading on Betfair. This is obviously alot slower moving which is fine. The principal is the same and it involves patience, discipline and a dose of luck. Record keeping is a must and I mean using your own spreadsheets and keeping them up to date. I will give us the gist to keep it short :
I buy in groups IE: Capital gainers, young talent, flips and dividend magnets.
All the above are subjective but with a little research you can find plenty of nuggets.
Bank management is key and all FI players have big spikes but always settle and my strategy involves catching a player who's spike has raised a specific % and then sell 50% of my shares in that player. Keeping 50% for any further rise or for the next spike.
On the reverse if a player sinks by a specific % I do the same and take a loss on 50% of shares held and hold the shares remaining hoping for a spike.
If your research good you shouldn't have to worry too much about selling for a loss apart from a complete loss of form or career threatening/ending injury.
Some will say 'I had Neymar for a year and he's gone from 8 - 10 pounds which is great but what if he broke his leg, he could go from 8 - 2,3,4 who knows and then you have a squeeky bum situation. Especially if you've got 100's of shares in him. Many who have reaped rewards on top players haven't yet sold to benefit from the profits and therefore in the situation above could see a massive potential profit turn into a massive actual loss.
Anyway that's my game and it may be too cautious for some but I don't find losing money fun and have fun doing things this way. It means I always have a reasonably secure bank and money around to shuffle my portfolio if I need to.
@Frankie66 Hi Frankie, do you have a specific % generally speaking for when to sell shares in a player who's spiked or crashed? I'm a newbie to FI and would like to try and make my approach a bit more professional as its very tempting to just hold on to shares when they're constantly growing like they have been the last two weeks!
@NewUser309471 Yes it's been a bit hectic with the SS and dividend changes. I generally look for around 30% on the profit side of things and a max of 30% on the loss side. However I tend to pull the plug around 20% more often than not. This depends on an evaluation of the players situation if he is being left on the bench or injured no dividends likely until that changes so cutting my shares and investing elsewhere is my call. If however it's one of the big boys they command media dividends if they blow their nose so I may hang in there. As far as profits of 30% goes a profit is a profit and yes you may miss out on some further growth but you still have shares reaping those rewards and an actual profit cashed out. If that player dips you can always reinvest still having had a cashed out profit.
I evaluate my success on my investment profile growing without making deposits. So if I have 2000 invested at the beginning of the month and the end my portfolio is totalling 2400 invested I have made an actual profit of 400. My profit in my portfolio may read 3000 but that is only virtual profit and until I sell and cash out or reinvest I don't regard it as actual profit.
Hope this gives you some ideas to move ahead with.