Page 20 - Buildingastrategy
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BUILDING A STRATEGY PART 8
TRANSFER WINDOW CONTINUED
Sell while the player is in demand
Staying in the trade while its hot is key to maximise profits but judging when to get
out is equally as important, to avoid the spread selling to market is best. This
might sound a little contradictory to my last point but exiting the trade while the
demand is high is never a bad idea.
Rumours are dead
If rumours are not being reported any more and the player price has stagnated or
dropped then exit the trade.
Here are two examples of this strategy one is my biggest winner and one is my
biggest loser of the January 2018 transfer window
Andy Carroll
Bought 100 @ 0.90
Sold 100 to market @ £1.23
+33% ROI
Andy Carroll to Chelsea rumours had been circulating the week prior but had
gone dead, his price had decreased because of this but I was lucky enough to
jump on breaking news that interest from Chelsea was back on. I quickly made
my move middle of the morning and watched how far the trend would go,
momentum really started to pick up in the evening and I ended up exiting the
trade late that night.
Samir Nasri
Bought 100 @ 0.91
Instant Sold 100 @ 0.87
-4.5% ROI
It was being reported that Samir Nasri would be joining West Ham, now this was
not as widely reported as some rumours but the trade stuck with my rules so I
entered the trade on breaking news and he rose to 0.95. I stuck with Nasri around
three days until the rumours had stopped and instant sold at 0.92 plus spread
equals 0.87, now this is why this strategy is low risk because if you stick to the
rules players will always rise and as you can see even though I cut my losses
I still sold at a higher overall price than what I bought him for.
Over time it will be very hard for you to not make a profit using this strategy during
the transfer window. From my experience one winning trade will cover three to
four losing trades as long as you stick to the rules.