As most will be aware, there is level of volatility on FI at the moment that has not really been seen before, predominantly fuelled by IPD chasing (and other traders preying on IPD chasers).
Personally, I'm uncomfortable with it but that's because I'm a long-term trader at heart, who enjoyed sitting back and watching my sound investments steadily grow.
But there are obviously thousands of people who are loving it right now and making good money day-trading cheap players, so I'm remaining neutral in my assessment of things. What doesn't work for some does work for others.
A few experienced traders are assuming this "flipping" craze will blow over. For selfish reasons I would hope they are right but I am preparing for the fact that this is not just a fad but is here to stay. Why? A few reasons...
The big marketing push (tv/radio/shirt sponsors etc) by FI has been a tremendous success in bringing in thousands of new users but it's clearly tipped the balance and it is safe to assume that the majority of new users are "traditional gamblers"...
The thing with gamblers is, they are easily addicted (as I am to FI!) and they are optmistic - thinking they will win, no matter how many times they have lost previously. For example, a failed flip on Jason Denayer last night has made him the biggest faller today, which suggests people have instant sold to reinvest in tonight's games ("Never mind the loss on Denayer, tonight I'll get lucky and win it all back in the Lille game!"). It's not just about the money either with gamblers, it's the thrill of being a winner/being right. And there are now more chances than ever for these "gamblers" to prove themselves...
During the international breaks usually, we'd get 2 weeks of treble MB - if this was the case next week, I suspect many of the traditional gamblers would get bored with no "action" and leave the platform. Then we'd see a return to a more stable investment-based platform. However, Football Index have now taken the surprising step of allowing international European Qualifiers to earn PB and IPDs (although when you imagine the amount of commission that are currently earning then it's not surprising at all).
So, the opportunities for traditional gamblers to feed their habit are now uninterrupted. A couple of quotes from Matthew McConaughey in 'The Wolf of Wall Street' spring to mind:
"...what do you do? You get another brilliant idea, a special idea. Another situation, another stock to reinvest his earnings and then some. And he will, every single time. Cause they’re fucking addicted. And then you just keep doing this, again, and again, and again."
"Keep the client on the Ferris Wheel, and it goes, the park is open twenty-four-seven, three-six-five. Every decade, every Goddamn century. That’s it. Name of the game." ('Mark Hanna')
Conclusion: As I've mentioned on another thread, I've reluctantly got involved in this day-trading/flipping practice over the last couple of days 😏. Only allocating around 12% of my overall portfolio value (so far) but I'm already eyeing up the weaker players in my 'medium-term holds' section for a potential cull to up my day-trading value to nearer 50%. This is not what I signed up to FI for but, sadly, my old gambling cravings have resurfaced. And that's what FI want, it makes absolute business sense for them. And I can't begrudge them that.
My intention is to give this day-trading a few more weeks and see how it works out. If I am successful then I'll continue but if not, I'll sell all the short term holds, top up my long term holds and then self-exclude from FI until Christmas 🎅🏻.