After the spectacular gains of the last report, we’ve seen some heavy losses this time.
To be fair, we were explicitly told (by the service) that there would almost certainly be a reduction of the value of our portfolio as a direct result of the full introduction of the Bid/Offer Matching Book system that the Index have now introduced. This new method calculates the Buy & Sell price by taking an average of the next 300 shares waiting to be traded.
The service did say that they expected a downturn in value as traders reacted to the new methods, but that it would be a short term reaction. and we would see normality return soon. What we weren’t warned about, and to be fair couldn’t be warned about, was the carnage caused by the new method coinciding with the fallout from the Neymar sending off.
Although I was not keeping a close eye on the market around the time of the PSG match, I’m led to believe that Neymar and the other payers involved saw their prices dip as a result of the sending off and that this set in motion a bit of an overall market mini crash, with people seeming to panic sell.
It has wiped out what profit we had accrued and left us in minus terriotory again.
Thankfully, we seem to have turned the corner already and have recovered some of the losses since I recorded all my figures on Tuesday.
The service took the reduced prices as an opportunity to buy lots of new players in the hope of gathering in some In Play Dividends. Most of the rest of Europe are starting their new seasons this weekend, so it’s an ideal time to get some of these short term purchases done. You only get Inplay Divi payouts for the first 30 days of ownership.
We’ve also listed a lot of players for sale. The service took advantage of the new Offer method to set the price we’re willing to accept for our shares in a good number of our players. They gave us a Min and Max figure to quote for our sales. I went for 1p under the middle point of each bracket, in the hope that I’d be in prime position to shift these players as soon as poss. So far, I have managed to sell one, but a good few of the others are close to my price and will go if they have a decent game and traders look to pick them up for the Inplay Divi I’m no longer entitled to for these long held shares
SO to the figures: I spent £2,815.80 building my portfolio. It is currently worth £2,414.90, I’ve made £258.59 in share sales, and been paid £98.33 in dividends. Leaving an on papaer loss of £44, and that’s before subscription payments.
I genuinely don’t think the service are responsible for the losses over the last couple of weeks. This was down to the change in the Buy/Sell price method of calculation, and then a market “crash” very much akin to those you may see on any Share Index being sparked by a wobble in trader confidence setting of an stampede to see by people over-reacting.
Having said that, I’m very glad I chose to keep this trial going, rather than wrapping up after our usual 3 Month period. Lets see if the recovery continues.
Despite the recent losses, I actually think this might be a very good time to get involved, as prices are as low as they’ve been for some players. I could well be wrong, and the bottoming out may continue, but I’m cautiously optimistic that this will recover quite well and filling our boots now, while the new seasons are starting up, could well gather in plenty of Inplay Dividends, which will push the share price up as a consequence.
No verdict yet, but I’m happy to continue for a while yet.
*EDIT: JUST DID A QUICK CALC AND MY “ON PAPER” IS NOW -£15, SO IT’S RECOVERED £30 SINCE TUESDAY THROUGH DIVIDENDS AND INCREASED SHARE PRICE