IT'S ALL ABOUT BRUNO
What a couple of weeks it has been on Football Index, and what a couple of weeks for Bruno Fernandes. Three goals have resulted in over a £3 per share rise on the platform. Three quid! And he wasn't cheap to begin with - he has gone from £5 to the third-highest player on the Index at over £8.
A few questions may be asked about this kind of rise in such a short period of time: Where is this money coming from? How does this affect the other players on the Index? And will he continue to rise?
WHERE IS THE MONEY COMING FROM?
Well, there must be a lot of cash balances around. I always say to anyone on the platform to keep a cash balance. It’s just common sense to me, especially if you are actively monitoring football matches on a weekend. Taking advantage of a potential rise right in front of you is a solid tactic.
If you are a Man Utd fan and you are witnessing a Bruno masterclass (for argument's sake) then being able to quickly buy him is a huge benefit. When Man Utd got a penalty in the Europa League for he went up around 40p in a heartbeat! That’s an eye-watering amount of money pumped in and you had to be quick to take full advantage.
There is also the deposit button at your fingertips, so if you have money to spare in the bank, traders stick it in before ploughing into which ever player they like. But not everyone has this option nor have a clear idea of available funds they can use for this gambling product we all know and love, which is why I recommend the cash balance option as it prevents the stress of over-depositing and keeps a discipline to your trading.
Then there is the other way to instantly create available cash if you don’t have it to hand, which is instant selling players you already own. Which leads me onto the next question…
With mass buying in a short period of time and FOMO kicking in good and proper, it can lead to traders ditching players they hold via the instant sell button. They may see paying the spread and commission costs as worthwhile if it means making a profit on Bruno, particularly if these profits cover the 'losses' they have just made; a small hit for the bigger picture.
Others can do it in a blind panic without much thought of the costs involved. I’m sure we have all been there at some point. Whether that is a 'bad move' can be judged in the profit or loss they have ended up with. If it paid off on this occasion then fair play, but try to stay rational out there, folks.
Either way, when the whole market is seemingly desperate to get on a premium player asap, it inevitably leads to “lesser players” getting sold off. In some cases, a trader may ditch one premium player for another. I personally wouldn’t recommend that move… as that is some spread you are paying! Ouch.
WILL BRUNO CONTINUE TO RISE?
Quite simply, it all depends on Bruno. If he continues to perform and score goals, than you would say so. He is an all-round package of having a very strong media pull plus a strong PB base, while playing for the most famous and well-supported team in the country.
Some have said he may become King of the Index one day and I can’t say that it can’t or won’t happen. He has potentially EVERYTHING going for him right down to his age, as at 27 he has a few years left in him before anyone starts to get the Lionel Messi/Toni Kroos ageist sticks out.
What I will say - with these epic instant rises dips are never far behind, as we have seen already this week. On the first day of the four treble media days on Monday, he reached £8.40. Heading into this weekend he is only just clawing onto £8. If he scores the winning goal against Man City in the derby on Sunday…then watch out for a massive rocket!!