What makes a players price rise or fall?
Knowing the reason why players rise and fall is the key to making good solid trades on the football index
Here I will explain some of the reasons for movement and what to look out for!
A good performance on the pitch is key to a player rising in value, a player performing well week in week out creates higher demand, higher demand means more people investing into that particular player, likewise if a player has a poor performance he is likely to go on a downward trend,
meaning a dip in price.
News and the media!
Reports and what is happening off the pitch for example in the players personal life etc can all have an impact on a footballers market price,
for example injury news can create a big price drift, transfer rumors and speculation generated from the press will also influance the market price, in either a positive or negative light.
General Market Movement
Just like with the financial stock market Big money players can move the price on a player by either buying a large volume or selling a large volume
of futures in a player, its simply supply and demand.
Dividends are another big factor and a major reason why players will rise on the market, a player that regularly wins dividends will be a lot more sort after then one that is never in the media! Dividends are a fantastic way of earning money whilst you have money tied up and invested in that particular player, they are cash sums paid out daily.
These are the three main contributers when under standing why a player is rising or declining in value, please refer back to this when trading.