This week we spoke to @Footyindex44 about his experience of using the Football Index platform. His trading strategy of having strict criteria of who he buys combined with a diverse portfolio has led to a return of investment of nearly 50%. 

This week we spoke to @Footyindex44 about his experience of using the Football Index platform. His trading strategy of having strict criteria of who he buys combined with a diverse portfolio has led to a return of investment of nearly 50%. 

How much money did you initially invest in Football Index?

I started on new year’s day with £20 just to see what the Football Index was all about. I bought a few different players and had a play around to understand how it all worked. I saw the potential of the platform pretty quickly and I steadily increased my investment to around £300 before the end of Jan.

I traded with this for a while as I learned more about Football Index and then upped my investment to the £3k mark in April. For me, I could see the growth potential of Football Index immediately. However, it was important to understand how the market works and why players share price fluctuated.

From this point, I took it more seriously and see it as an investment (although it’s still fun). I now keep a daily total of portfolio and cash value, noting any reasons for changes during the previous day. My last deposit was in mid-May which took my portfolio value up to £5k. Personally I have no plans to deposit further.

What is your current Return Of Investment (ROI)?

My current ROI is around 46%. My portfolio currently sits at £7.3k from my £5k total investment.

How have you made your profit from the index (Capital Appreciation vs Dividends)?

With my first deposits, I could not afford to buy enough shares of the big dividend earners to make it worthwhile. It’s always hard to decide who to buy on Football Index? So instead I bought more shares in cheaper players I viewed as ‘undervalued’ and focused on capital appreciation. Because of this, the majority of my return on investment has come from players prices rising. It’s a bit more difficult to find hidden gems as consistently now with every trader looking but some ‘undervalued’ players can be right in front of your eyes. 

I have earned very little in dividends, only around 1.5% of current portfolio value. These are mostly from the odd performance buzz or in-play dividends win from a player I have bought to hold for capital appreciation.

Biggest Winner (Player), What happened?

Wouldn’t say one player as I tend to move cash on once a player is between 40-60% profit. This is a bit of a rule of thumb to me as it means I can cash in on players before they drop as well as reinvest that back into other ‘undervalued’ players and hopefully repeat the process. 

One exception to this rule is that I do hold Lucas Digne from Everton even though he currently has an increase of over 60%. I bought him at the end of last season and see his price only increasing with PB potential in the new matrix and a possible transfer to a big club next summer. 

I think it’s important to assess each trade on its own merit and if the positives outweigh the negatives there is not always a need to sell.

Biggest Loser (Player), What Happened?

Haven’t had any major disasters that spring to mind, the only one is buying into Mesut Ozil during the deposit bonus and the announcement of media being opened up. I pretty much bought at the peak price and ended up instant selling for around a 15% loss.

It always leaves a bit of a sour taste when that happens. However, that money was reinvested into players that have made a healthy profit. So in hindsight, it was a good decision to sell rather than watch as his price continues to drop. 

This again highlights the need to assess every trade on its own merit. It’s easy to hold onto players for a long period hoping they will return to peak price when that money could be working better elsewhere.

Do you have a trading strategy on Football Index?

I try to keep to a portfolio of between 40 and 50 players, each player with a similar amount invested. I also aim to keep one cycle ahead of the market. For example, I look at buying summer transfer players in Feb/March and PB players in May/June. This should allow me buy shares at the lowest price and decide when the price is right for me to sell as they continue to rise.

Another of my rules is that I look at buying fairly young players (under 26) that are already playing in PB leagues. I look at each player on an individual basis to see whether there is a potential to transfer to a bigger club or become the main player in their team.

I also try to avoid quickly flipping players as I see it too much of a gamble, the market always reacts faster than you can in my opinion!

I guess the underlying tactic of my strategy is to find players that are undervalued. I look at picking up players that are on the decrease list (for no valid reason) or players that have just been injured, to gain some extra value.

What is your advice to new traders on the Football Index?

My first piece of advice to new traders is to take time to learn how things work, read all of the rules and build up total deposits slowly.

Use the forum and twitter for advice but be careful of tips and always research players fully before buying.

You cannot buy every player so limit yourself to a select few and don’t jump between players on the back of rises that have already happened.

Re-evaluate your port regularly to see if any circumstances have changed (PB potential, transfers, lack of minutes or recurring injuries), then make trades based on this information.

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