Football Index Tips: Top 10 Tips For The Right Strategy
Guest contributor and FI guru @_FiGuide gives us some insight and talks us through his ‘Top 10’ Football Index tips for trading.
Football Index Tips
Before we begin, if you’ve somehow stumbled on this post and you’re not sure what Football Index is or how it works, then feel free to read our guide for all the information you need and how to get started.
Those that are familiar with the Football Index will know it can be incredibly stressful when you first begin your journey on the platform.
Prices are up and down and your mood changes hand in hand with the success of your portfolio. You join Twitter for advice and guidance, yet all you see is a flurry of transfer news, making it even harder to understand who you should sink your teeth into.
Yet after the unnerving beginning, experience and practice will allow you to consistently profit on this on Football index. Stick with it and you WILL make money, and when you start looking at the bigger picture eventually, rather than day-to-day losses/gains- you will see your general ability to trade progress, and consequently an increase in profit along the way.
Football Index Tips: Top 10 Tips For The Right Strategy
Below are my top 10 tips when trading on the Football Index.
Tip 1 – Don’t Panic Buy/Sell
Panic buying and selling is a recurrent way in which traders lose money on the Football index. The most common example can be found during the transfer window’s where a player linked to a move outside the premier league, causes a few cautious traders to drop their holds. Are they wrong to do so? Perhaps, but perhaps they are covering themselves from a potential loss so who can blame them? After the slight dip, traders will look at their portfolio-the loss, coupled with the negative news creates a sense of panic, so they sell feeling instant relief when the player who was negative (in the red) has been wiped from their portfolio. This relief however comes with a great deal of baggage- selling a player already in the red due to panic is bad enough, but add commission to that figure and you could be looking at a reasonably sized loss as a % of your total portfolio. The same can be said for panic buying. This is slightly different in the eyes of a trader ; as a trader you see a rumour, but you’re indecisive- stressing at the thought of buying the player and seeing no instant rise. You continue to stress, leading to further indecision and finally cave in because you see his price rocket. After climbing a few pence you begin to see that horrible colour on the live price chart when a player drops in price; RED. 1p goes, then another- until you begin to curse your luck at not getting the player earlier, consequently bashing that instant sell button to avoid a potentially larger loss. After taking that loss you may be inclined to swear, maybe even launch your phone a couple of metres.
Both these tendencies can be avoided however, simply by being more strict in your trading patterns. If you see a positive article early enough, and the player in question has not had a large rise yet- fill up your boots with said player. Then, you can make the decision to either stick or twist- keeping for potential buzz wins or a further rise, or flip that player to bank some profit. With panic selling, if you do see negative news make a decision, read the article and gauge how much of an impact you think it will have on the player’s price. If you think the player will drop enough (% wise) for you to re-buy cheaper- sell with haste, if not- you can ride the wave or maybe even pick some more futures up at a cheaper price. Sounds simple, but takes practice- and with time, you will develop a successful technique in avoiding panic stations.
Tip 2 – Use A Spreadsheet
Using a spreadsheet in my opinion is essential. Logging your profits day-to-day is nice, but due to the nature of the index it doesn’t actually mean much. Long term growth is what you should be aiming for, and using a spreadsheet is the best way to calculate your growth over a particular time-frame – allowing you to better understand the rate at which you’re profiting on the index. Equally, inputting your buzz returns allows you to understand as a percentage, how much dividends have contributed to your profit. You can make a simple spreadsheet yourself detailing withdrawals/deposits etc however I will be publishing a video in the near future with a sample spreadsheet with all the necessary that I personally use, which will be readily available to anyone that is interested.
Tip 3 – Inform Yourself
Keeping up with football news can be tough, but it’s essential in order to prosper on Football Index. Whether it be transfer news, starting line ups or injury news- it’s really important that you read your fair share to keep yourself in the loop. It’s difficult I know, but but it’s pivotal to maintaining profitable days, weeks and eventually months in the long term on Football Index. If you’re on twitter or Facebook it’s hard to gauge the reliability and credibility of certain sources. I’m planning on doing a ‘Top 10 People to follow for Football Index traders’ video in the near future so keep an eye out for that!
Tip 4 – Be Objective
It’s important to remain objective when trading on Football Index. I’ve been stung by it myself- as an arsenal fan I’ve held on to the likes of Mesut Ozil and Alexis Sanchez at times where I shouldn’t have as I was unable to detach myself and take a step back. Look at the index logically, don’t be swayed by emotion and attachment as it CAN cost you dearly.
Tip 5 – You’ve Made/Lost Nothing Until You Sell
As I describe in my video using my personal holds, it’s important to understand that due to the nature of the index you lose nothing until you sell, but equally you gain nothing (apart from buzz wins) until you have realised those profits. It’s therefore important to do this consistently, taking profits when a player’s ceiling close, or if you think the player will decrease in price due to an injury/bad patch of form. It’s also important (as I explain in the video) not to panic in the red unless an opportunity you cannot refuse surfaces, and you need the capital desperately.
Tip 6 – Diversify Your Risk
If you hold 10 players in your portfolio, and they all equate to 10% of your portfolio- if one of these players falls by 10%, you’ve seen a decrease of 1% in your total portfolio. You hate to see it of course, but it’s no disaster- you can recover from that mouse sized hole quite swiftly. Conversely if you hold 10 players, and one of those players equates to 40% of your portfolio-and he drops by 10%- you’ve lost 4% of your portfolio. That’s a much larger hole, which would take you 4 times longer to recover from each. Assume both portfolios are worth £1000. The first portfolio mentioned would see a portfolio decrease of £10 which in relative terms is a small amount. A £40 pound decrease in the latter portfolio would represent a much larger decrease however, and this example, however crude it may be- shows how essential diversifying your portfolio is.
Tip 7 – Diversify Your Profit
Diversifying your ‘streams of income’ on Football Index is pivotal to being a successful Football Index trader. A combination of buzz winners, players who have buzz potential with great room to growth and also short term players who could rise due to transfer activity or high profile games is ideal, but the beauty of Football Index is that there are a variety of ways to make money. There is no ‘Right’ way to do it, but diversifying your profit can help in a sustainable and healthy portfolio.
Tip 8 – Proactive Not Reactive
Being a step or two ahead on the Football Index can be incredibly profitable. I use the Chelsea striker merry-go-round as an example in the video, citing that as when one player would rise off the back of some transfer news, the other two strikers linked would decrease respectively. If you can catch wind of news early enough- you can make a lot of money on the index-likewise being late on news can lead to some serious losses. When you do see this news, try and react before other traders in order to maximise your margins.
Tip 9 – Commission Can Be A Killer
Many fresh traders on the block are oblivious to the fact that Football Index take a 2% commission on ALL sales. There is no getting around this, it happens on every single sale trade made by every single trader. Multiplying a player’s value by 0.98 is a simple calculation you can do in order to understand the ‘True Value’ which you are selling at. Before diving into a purchase, I recommend multiplying the buy price by 1.02 in order to give yourself a better understanding of what price that player must rise to before you break even.
Tip 10 – Trust Your Instinct
It’s easy to be swayed by various twitter users you follow, journalists, various other media outlets however it’s also important to make your own decision in the end. If you are looking for guidance, do review the twitter accounts that you follow thoroughly (Football Index Twitter accounts or otherwise) analysing their track record and whether or not the players they have tipped to be of ‘value’ have seen a rise since.
So there you have it. Hopefully now you can go away and use my tips and insight to hopefully increase your profitability on the Football Index.
It’s important to remember that most successful Football Index traders have been on the platform for a reasonably long time. I was the 2404th member when I joined (now they have approx. over 80,000 users) and it’s taken me a long time to perfect my personal strategies and trading techniques.
You will get there, and you will develop your own approach which suits you best- it just takes some time. Just like most gamblers who bet very regularly, most of them will tell you that they lost money before eventually learning from their mistakes and profiting in the future. This premise is similar in Football Index trading, as well as trading in general- you’re not going to become an expert overnight, but you will learn from your mistakes and hopefully over time, you will profit.