The date for Penny Stocks on Football Index has been set as November 1st 2017. This post is to explain all about penny stocks & how we can adapt to them.
What are Penny Stocks on Football index?
Penny Stocks are the new update for Football Index. This update makes the performance buzz dividends payable to every player on the index, so basically any player can now win the performance buzz dividends.
This means traders are no longer restricted to just purchasing the top 200 players, if you know a hidden gem, you can sign him up! There’s nothing like picking an Under 21 wonderkid up for pennies, to sell on for a few pound! There will be significant profit to be made.
We are awaiting more information on Penny Stocks, but we’ve been told that they will be rolling out at a rate of around 50 per day. The great thing, which protects our portfolios, is that the penny stocks won’t be rolling out at 25p, like the Friday promotions.
Football Index have told us that the Penny Stocks will actually cost up to £3 per share, which means we won’t suffer from market volatility as there won’t be a reason for every trader to free up cash to profit from the IPO’s.
Why are Penny Stocks being Introduced?
Football Index have stated multiple reasons for Penny Stocks being introduced, of which we couldn’t agree more with!
- Football Index have traders interests at heart, initially opening up Performance Buzz dividends meant we had another way to make profit, from players in our portfolio playing well.
- Most traders on Football Index live & breathe Football… I’m one of those people! Penny Stocks will help us make a profit from our football knowledge, as we can purchase shares in up and coming talent.
- There are match days where Football Index cannot pay out dividends due to no tradeable footballers playing on that day, meaning no payouts for us traders. Penny Stocks will fix this.
Double Performance Buzz Dividends
As their platform is growing, Football Index has decided to double the payouts for Performance Buzz dividends (From 1st November). Any Player from English, French, German, Italian, Spanish, Champions League & Europa League will be available to purchase.
This means that the players prices on Football Index could potentially double, as their Return on Investment for dividends is now doubled!
We have seen Messi rise from £4 to £8.70 in the matter of weeks!
This addition makes Football Index much more attractive.
Can I make money from penny stocks?
There is a wider pool of players now to look for, so your Football knowledge will show with penny stocks.
- If you know of good youth players which should make it as future stars, you will be able to capitalise on your knowledge to buy these players.
- You will also have the opportunity to buy players which are new to the Football index, increasing your portfolio with fresh talent.
Advantages of Penny Stocks
When Penny Stocks are introduced, I can see many advantages from the update as listed below:
- Double Performance Buzz Dividends. Now, payout is doubled, players values will rise as the return on investment becomes greater.
- Football fans all over the world have extended knowledge of their teams best youth prospects. Now, you can put this knowledge into action and buy your Future Stars at a lower price!
- Increased Trading will occur, bringing the baseline for players prices even higher.
- 50 players are being promoted daily, which is another bonus for those successful IPO traders.
Potential Effects of Penny Stocks
Penny Stocks should be a great success, however I do have reservations about the following:
- Player pools will become larger, meaning each player has even less chance of earning Performance Buzz dividends. This makes Performance Buzz more of a ‘lottery’, but you’re definitely at an advantage long term if you hold quality players.
- Potential for a Stock Crash. This may occur if traders decide to move money away from their long term holds, to pursue flipping the newly promoted players. However, to protect portfolios Football Index will be controlling prices of the IPO’s.
I think Penny Stocks are a good move overall for the Football Index trading platform. There were many questions such as how will traders portfolios be protected, but they answered those questions by stating they will release IPO’s at designated prices.
Long term, I can see money being moved back into ‘Media Buzz’ players, as it’s more predictable on who will win that!
Performance Buzz is just a great addition, which I am thankful for!