Why don't you like it? If you have more money to put in you will get a bonus. If you don't but have already bought the right players then you should see some decent capital appreciation with the new money coming in. Plus extra media dividends. Seems ok to me and I don't really have extra money to make the most of the bonus.
Best posts made by Weggers83
RE: Not good for Swedish traders
RE: 900 for 1 p will not work
Over the last week we have seen a lot of debate about it needing 900 shares to increase a price by 1p. The main argument against seems to be that price movements will be slower and this will discourage new investors due to the psychological impact of not seeing price rises.
I agree with the theory, however I think we all need to give the platform some time as no one is really sure what it is going to be like now the share split has happened.
I was worried about the lack of movement, but in the last few days I have seen an increase of 0.5%. This is after the huge rises we saw during the split. Now 0.5% might not sound much, but if I made this every week that will be at least 20% in year, which seems pretty good to me.
Maybe I have just been lucky at the moment and the market is flat (not that unexpected considering the amount of money that has recently been pumped in). If the market remained flat for a month, then I would say we have a problem. However as @gregf pointed out, if the market it flat I'm sure FI will try their very best to stimulate the market. Only when this happens and they fail to stimulate the market, will I start to worry about the platform.
In short I think we just all need to give the platform a bit of time before making any hasty conclusions about what will and wont work.
RE: Share Split Announcement - Thoughts & Reactions
I really don't see anything major happening in the announcement.
They will tell us what the share split factor is and also how dividends will be factored. As in will they go to decimal places or whole numbers. As well as explaining if odd number prices are rounded up or down.
Other than that could tell us that they are opening MB to all. Can't see any other changes than that.
RE: Seems like 900 moves 1p
I think the problem can be summarised like this:
For old users before the share split.
Someone has 100 shares @ £21. For the price to move 3p there needs to be £6300 (roughly 21*300) of investment. If that happens the owners portfolio will go up £3
After share split they now own 300 shares @ £7. For the price to move 1p there needs to be £6300 (7*900) of investments. If that happens the owners portfolio will go up by £3
So for all the old investors, when £6300 is invested the portfolio amount will go up the same, its just pre split you would see the portfolio go up in £1 incrementals, where as now you will have to wait longer but the movement will be £3 staight away. This to me is not a problem
A new user comes in because they can now afford the most expensive players. They buy one share in the player above.
They will have to wait until £6,300 is invested before the price goes up 1p, and in turn for their portfolio to go up 1p.
As a result the FI is not as attractive to the new user and they may decide to leave.
The idea of the share split was to decrease the prices to encourage more new users to join. The new users may not like the system though as they are not seeing much growth. So the question comes down to, 'Can FI attract enough new investment that requires the prices to increase enough to be attractive for the new users?' On this only time will tell, but as others have stated on various threads this will need a big marketing push to get the new users in.
*Please note I'm aware that in this analysis I have made no consideration to dividend payments which is the whole point in investing in players, as this would over complicate things and my brain can't cope with bringing them into the equation!
Hope this makes sense to everyone, and that my understanding of the current situation is correct. Also @Ericali, I appreciate its not exactly 900 = 1p, but I was just using this as a rough guide to illustrate my point :-D
RE: Congratulations FI - Looks like a job well done
so the activity tracker is working! Can't read it because its flashing so quickly with new sales, but it is definitely working!
RE: April 15th announcement
FI systems can only just about cope with correctly giving dividends as it is. I can't seem them changing things this radically. Imagine it will be likely to open up to 5 places, with maybe 10p, 8p, 6p, 4p, 2p to the 1st, 2nd, 3rd, 4th , 5th place player.
RE: How is the platform sustainable?
Football Index makes money out of the commission they take for every time someone sells shares in player. This is 2% if you sell to market, or even more if you instant sell due to the spread. Also if someone sells to the market, it means someone else has bought, so the amount of money invested in the player remains the same, but FI have just taken a 2% cut and will take another 2% when the the second buyer sells.
Shares are only valid for 3 years, so everyone will have to sell at some point ensuring FI take their commission.
As long as this commission is bigger than the amount they have to pay out in dividends then FI are in profit. Now they will lose money on some players, but considering there are over 2,000 players, there are a lot of players who will never win dividends but FI will still take commission.
Hope that makes sense.
Latest posts made by Weggers83
RE: Foden - future king?
Agree with the statement on PB scores, however he came off after 79 mins. Had he stayed on he would probably have got star man. On top of that he was playing in Sterlings role yesterday, which isn't necessarily suited to high pb scores. If he moves more centrally I can see him being more involved whilst still being a goal threat and his pb should improve
Foden - future king?
This is obviously a bit of a pump and yes I do hold shares him, but does some else think he could be future king of the index (or at least overtake Sancho).
Everytime I watch him I think he is class. He has a great first touch, good eye for a pass and goal and can see him dictating play in the future.
Whilst being touted to fill the void left by Silva leaving, he has shown he can play a variety positions which can only improve his game time. More MoM performances like yesterday will also help.
I think sancho is a great talent and I'm disappointed I don't hold but if they both play in the Prem next season and get similar minutes, I predict Foden will win more PB. He also had first England call-up, cap, goal to come for Media.
Does anyone agree/ disagree. I dont see many downsides to his game apart from limited game time which will surely come, so I'd like to hear both sides of the argument before I top up.
RE: Newbie trading diary
The 2% commission would widen spreads but may make market sells more likely. So not all doom and gloom.
As for valuing your port, I do it both ways so you know the best and worst outcome. The reality will be somewhere in the middle depending on a whole host of factors.
I still believe market sells will happen especially when all football has returned. You may just need patience for your player to hit good form / transfer spec / both
RE: Is the market price now pointless?
I don't understand the thinking that people won't use market buy much anymore.
Before ME players prices rose because people wanted to buy and no one (or fewer people) wanted to sell, either through market sell or instant sell.
The only thing that has changed is that people can now try and buy a player by putting in a bid below the market price. However if no one was willing to sell before ME was introduced why would they want to instant sell now? If no sellers then people are forced to use market buy.