Buying is easy. Selling is hard.
When is the best time to sell?
Should you sell now whilst he’s rising?
Should you sell as his price flatlines?
Should you sell as he drops?
Should you hold on in case his price bounces back up?
Oh so many questions….
When it comes to selling, it triggers a host of emotions and more often than not, you end up selling at the wrong time.
Timing your sells is such a difficult skill to master – I mean, to actually be able to pick the top every single time which is why it feels like when you sell, you’ve kinda mistimed it.
So what should you do to help with selling?
First let’s define the difference between Instant Sell and Sell to Market.
Instant sell is where the share of the player can be instantly sold at the sell price shown next to the players buy price.
Football index set this price which is always lower than the players current value. This price changes depending on demand for the player. Ie if a player is rapidly decreasing this is likely to be quite a bit lower than current buy price.
Instant sell sells the player/future at the current sell price (red/pink button). Football index set this price which is always lower than the players current buy value. This price changes depending on demand for the player. Ie if a player is rapidly decreasing this is likely to be quite a bit lower than current buy price.
The difference between the buy price and the instant sell price is known as the spread and can be around 3-10%. Sometimes more when a raft of traders start selling a player in droves.
When you instant sell, you pay the % spread PLUS the 2% commission on the total value of the sale.
So in some cases, you’ll be looking to lose say 10% profit to sell right now. So do the maths before instant selling – is it worth it?
Join the sell queue basically puts your futures for sale on the market at the current buy price and you enter a queue.
You have to wait your turn to sell as others who put their futures for sale before will be ahead of you in the queue. The problem with this is whilst you’re waiting for your turn the players value can decrease as others are selling ahead of you.
BUT…you will lock in more profit if you sell quickly because you will always be selling at a higher price than the instant sell price.
1. Set a price target
If you bought thinking that the player is undervalued, then set a price target where you think he’s reasonably valued – and if that player reaches that point then it’s time to reassess the situation.
Review the chart, fixtures, PB scores and performance data to see if there is an opportunity for further price rises – if you don’t feel confident then it’s time to market sell first.
2. Assess the demand
If you list a player to market and you sell him immediately, it could indicate that demand is there for that player still do not might not be the right time to sell. So to test the waters, sometimes just listing a few shares can help assess the demand out there.
If you place a player on sale and he’s still there a few days later, then demand is low and you could be seeing his price drop slowly as you are behind a very long queue.
3. Instant sell if you can guarantee you can make up the spread & commission quickly
Sometimes, a player won’t have moved in price for ages. So, you get bored holding that player but you see another player where the price is slowly rising.
If you can almost guarantee that that player can gain 5% or so in a day or two then it’s worth instant selling and moving over to the other player.
What you shouldn’t do though – is instant sell in a panic without having a player to move your cash into quickly to recoup any losses.
Hope this helps with your selling strategy – if you have any tips of your own please do leave a comment or share your tips by joining IndexGain.
4. Lock in profits or take the loss?
This depends on why you purchased that player to begin with.
If you had set a price target in the first place, then if you want to lock in the profit then you should think about selling up and moving onto the next opportunity and building your bank up slowly.
If you purchased thinking he would rise but he’s headed in the opposite direction then you may want to stay a bit patient or take the loss on the chin and move on and recoup the losses elsewhere.
There is no right or wrong answer – all depends on your own objective for buying such a player.