phd
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Post by phd on Jan 7, 2016 22:07:47 GMT
Hi all Recently started p2p investing and don't understand how secondary market offerings can be snapped up so fast. Am trying to diversify my capital but cannot because people are too fast to snap up what is being offered. Any ideas?
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ben
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Post by ben on Jan 7, 2016 22:12:33 GMT
give it time at moment everyone is wanting to diversify as sm is fairly new
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SteveT
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Post by SteveT on Jan 7, 2016 22:21:08 GMT
To be honest, it's much more sedate on here than on Saving Stream, where you've almost no chance. The issue is more that there is very little being offered for sale (other than in the run-up to new loan launches when some lenders sell parts to free up cash) because most MT lenders want to hold onto their loan parts. However there's usually plenty of time to pick up holdings in all the new MT loans, since Ed applies a 1% bid limit for the first 24 hours.
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phd
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Post by phd on Jan 7, 2016 22:33:27 GMT
To be honest, it's much more sedate on here than on Saving Stream, where you've almost no chance. The issue is more that there is very little being offered for sale (other than in the run-up to new loan launches when some lenders sell parts to free up cash) because most MT lenders want to hold onto their loan parts. However there's usually plenty of time to pick up holdings in all the new MT loans, since Ed applies a 1% bid limit for the first 24 hours. Thanks for replies. I have invested so far in saving stream, moneything and funding circle. How come they also get snapped up so quickly with saving stream too? I prefer these 2 Platforms over others because of the relative simplicity of investing, but without the necessary diversification I could leave large slices of capital at risk at any one time. Could we not have a buddy list where you could diversify your portfolio among a set number of members, thus avoiding a 'bun fight' to get anything. I know this is simplistic, but something is better than nothing?!
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davex
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Post by davex on Jan 7, 2016 23:08:21 GMT
Cannot see a buddy list working. Currently i am finding it almost impossible to get anything on the SM, too many automated systems. I have had some slight success early in the morning; shortly after midnight. MT is much easier to invest in the SM, have managed to pick up a few bits and pieces, particularly just before a new loan is launched. Perhaps MT is still a bit off the radar for the BOT brigade, i certainly hope so. Hopefully Ed will put something in the T&Cs banning automated buying systems.
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Post by MoneyThing on Jan 8, 2016 9:57:22 GMT
Cannot see a buddy list working. Currently i am finding it almost impossible to get anything on the SM, too many automated systems. I have had some slight success early in the morning; shortly after midnight. MT is much easier to invest in the SM, have managed to pick up a few bits and pieces, particularly just before a new loan is launched. Perhaps MT is still a bit off the radar for the BOT brigade, i certainly hope so. Hopefully Ed will put something in the T&Cs banning automated buying systems. Morning, We are keeping a close eye out on the nature of the bids and apart from those who use automated browser refresh tools to instantly notify them of loan availability, we cannot see any sign of 'BOTS' at this stage. If we did start to see traffic of this nature, there are a number of ways we could mitigate this such as adding in captchas/password at the invest page (which we admittedly had at launch). For the time being, whilst we seem to be under the radar we will refrain from adding in anything which would require extra steps (clicks), for investors to bid. If it really became a problem, then there are also other server side tools we could employ to filter the traffic. Kind regards, Ed
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pom
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Post by pom on Jan 8, 2016 12:04:09 GMT
Way I see it the only reason it can be difficult to get stuff on the MT SM at the moment is cos pretty much everyone is still building their portfolios so there is very little available. What IS available though should be (relatively) much easier to get hold of than on SS because of the requirement to have the cash in your account up front. (the downside being you have to have your cash available up front!! But the volumes generally match the kind of repayments people are wanting to reinvest quite nicely I think) So for now I suspect the volumes probably aren't high enough to be worth the effort of bots...and that probably also goes for the primary market too thanks to the bidding limits.
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Investboy
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Post by Investboy on Jan 8, 2016 12:50:02 GMT
phd welcome to the forum. The reason why the loans on SM disappear quickly are so called "bots", "fast fingers" or "browser plugins". If you search for those terms on the forums you'll have lots of reading to do. Basically its not people buying but software, who can snap things in milliseconds once available. Yesterday was pretty good day on SM. Plenty of loans, mostly recent ones. But I also managed to get my hands on some old Managed Portfolio (Electronics) and Porsche 911 Turbo. The rule here will be that anytime there is a new loan coming people will be selling some of their holdings to free up funds. So just check day before or on the day. As in everything in life investing also takes patience. And this is what I'm recommending to everyone on this forum and following myself. Initially I got overexcited and wanted to diversify instantly. But there is no point as you have 6 months to do that. What I do is put a lump sum in first available (large) loan so it earns interests. And then once new become available I sell a portion of old one and invest in new one. Simple.
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hazellend
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Post by hazellend on Jan 8, 2016 15:01:23 GMT
phd welcome to the forum. The reason why the loans on SM disappear quickly are so called "bots", "fast fingers" or "browser plugins". If you search for those terms on the forums you'll have lots of reading to do. Basically its not people buying but software, who can snap things in milliseconds once available. Yesterday was pretty good day on SM. Plenty of loans, mostly recent ones. But I also managed to get my hands on some old Managed Portfolio (Electronics) and Porsche 911 Turbo. The rule here will be that anytime there is a new loan coming people will be selling some of their holdings to free up funds. So just check day before or on the day. As in everything in life investing also takes patience. And this is what I'm recommending to everyone on this forum and following myself. Initially I got overexcited and wanted to diversify instantly. But there is no point as you have 6 months to do that. What I do is put a lump sum in first available (large) loan so it earns interests. And then once new become available I sell a portion of old one and invest in new one. Simple. That doesn't seem like a sensible strategy. What if your first loan defaults before you get a chance to sell bits and diversify?
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Investboy
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Post by Investboy on Jan 8, 2016 17:30:48 GMT
This is very sensible strategy which I'm using now. Currently the problem for people is to get something on SM not the other way - disposing things on SM. On SS SM parts disappearing in nanoseconds. On MT they do not last long - sometimes seconds, even the last 10%-yielder parts go in minutes.
Also the loans are backed by assets so worst case scenario you'll get something back at some point when the security is sold.
Like I said elsewhere, bots are blessing for platforms not a curse.
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littleoldlady
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Post by littleoldlady on Jan 8, 2016 17:44:55 GMT
Like I said elsewhere, bots are blessing for platforms not a curse. I don't agree. How do they improve liquidity? They just buy loans quicker, not in any greater volume. If the bot-runners did not use bots they would have to buy them manually like the rest of us. Liquidity would be just the same (OK a fraction of a second slower).
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phd
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Post by phd on Jan 8, 2016 17:48:00 GMT
This is very sensible strategy which I'm using now. Currently the problem for people is to get something on SM not the other way - disposing things on SM. On SS SM parts disappearing in nanoseconds. On MT they do not last long - sometimes seconds, even the last 10%-yielder parts go in minutes. Also the loans are backed by assets so worst case scenario you'll get something back at some point when the security is sold. Like I said elsewhere, bots are blessing for platforms not a curse. Invest boy - I agree with you. This is what I have had to do, but still no real room to snap up and diversify unless you have some bot software or whatever you call it or are quick with your fingers. Have been fairly successful today, but only because I have been regularly checking whilst waiting for my wife to go into labour at hospital! If p2p is to really take off I do think this needs addressing. I suggested a buddy list as this is the only thing I can think of to help the average investor diversify in a more orderly fashion.
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parisingoc
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Post by parisingoc on Jan 8, 2016 18:17:57 GMT
From where I stand, diversification on MT is easy! Where I stand means I have a few hundred to invest every month, which means I am a tiddler, putting £100 into everything that comes along that I like the look of. I have also managed to buy a bit on the SM.
For me, MT is spot on, as is SS, which works differently but is as close to a perfect fit as MT (in a slightly different way) for the few hundred per month I put on there.
My biggest worry is that this will change. My experience to date of change on P2P platforms is they invariably move further away from my idea of a perfect fit and rarely, if ever, closer to it.
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phd
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Post by phd on Jan 8, 2016 18:54:16 GMT
You have to be extremely quick to pick up anything on SS or MT in my opinion, making it difficult to get the diversification split right. Saving stream in particular is ni on impossible to get anything on secondary market....unless you go down the use of a bot route! This creates a big barrier to entry for most small time investors and in my opinion it is this the likes of SS and MT have to address much better.
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SteveT
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Post by SteveT on Jan 8, 2016 19:14:06 GMT
Or else you can do what all of us "MT old-timers" did (before the excellent SM was launched) and progressively invest over several months as new loans launch in order to build diversification.
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