So two months ago I kicked off my Football INDEX journey. I finally decided to enter the market after growing tired of the low interest rates on some of my savings and reading good reviews about the platform. Two months on I’m more than 25% up. In this first blog, I wanted to look at what lessons I’ve learned during this period.
1 – The Index is growing
I suspect it would’ve been hard to lose money in the last two months on the Index. With the launch of some impressive marketing deals and partnerships, Football INDEX is having more exposure than ever, resulting in more investment and growing player prices. Talk Sport and Sky Sports ads, Bristol Rovers shirt sponsorship, collaborations with John Motson and Guillem Balagué and more impressive work from the marketing team at Football INDEX has seen impressive growth in the summer months.
2 – Don’t be scared to trade
Just because the Index is growing as a whole, it’s still important to trade in order to maximise profits. It takes a while to learn how to judge a player’s peak value, but once you nail that, you’ll be turning the best profits. Of course, it’s nearly impossible to get it just right and the players you trade may continue to rise, but could your money be better invested in another player? Ask yourself, would you buy more of the player at the price they are currently at – if yes, buy some more, if no, consider selling. Try to ignore your buy price, and make a trading decision based on the current price of a player.
3 – Buy in dips
Red often scares traders and it did to me when I first started – but shopping on the decrease list is certainly a profitable way to play. Sometimes players can drop due to one big trader listing a lot of that player, this can present a great opportunity. Also if you hold a player who has dropped for no real reason and you can still see value, consider topping up and buying more futures in that player.
4 – Appreciating the value of Media Dividends
It can be tempting to focus on players with strong Match Day Ranking potential and whilst that is great, don’t underestimate the value of Media Rankings – of course it is hard to anticipate who will dominate media, but there are familiar faces who tend to always be in or around the top 3. If you’re confused by a price there’s probably a reason behind it. I remember when I joined the Index I saw Pogba trading at around £6 and on the face of it thought he was overpriced, his media coverage since has seen him rise to more than £11 and not buying him is one of my biggest regrets. The same could be said for Mesut Ozil, who has won no Match Day Dividends over the last year but racked up 86p of Media Dividends, a 26% return on his current trading price (£3.20).
5 – Don’t get stung in the Match Day market
Since the return of matchdays the market has become incredibly volatile, especially with goalscorers. My general advice would be to steer clear of trading during this time unless you have good reason, as prices can move very quickly.
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