For this weeks trader profile, we spoke to @Mortz_BHAFC from Twitter. This article was written towards the back end of last year so some of the information is slightly dated, but the Football Index strategy side is still extremely relevant. In this Football Index Tips trader profile, @Mortz_BHAFC talks about keeping the faith in your research and being patient on long term holds to reap the rewards.
How much money did you initially invest in Football Index?
I first joined the Football Index (FI) during the World Cup in 2018. I only put in £50 at first because, to be honest, I had no idea what I was doing. As I started to learn how FI worked I trickled more money in and slowly built my portfolio up.
By Christmas, I had a 2k portfolio and was really starting to love and slightly understand FI. I think for me spare time was a limiting factor as I have young children so it was difficult to spend a lot of time getting used to how everything worked.
I decided in January 2019 that it was time to take it a bit more seriously and deposited around another 5k. I was surprised at how quickly I saw results and decided to put the new van I’d been saving for on hold. Since then I’ve regularly made increasing deposits and my total investment is now at the 15k mark.
At this point, I’ve decided that I am happy with the amount I have invested and I won’t be making any more deposits or withdrawals any time soon. I love FI, it’s crazy to think that something so enjoyable can also be a great investment opportunity.
What is your current Return Of Investment (ROI)?
My current portfolio is worth just over 23k and that’s from my 15k investment so 8k in profit which I’m obviously very happy with. My profit on FI says around 2k but I’ve traded a lot so made money and reinvested all my profit along the way. I’ve just gone over £1150 in dividends too which are always a welcome bonus.
How have you made your profit from the index (Capital Appreciation vs Dividends)?
I love chasing Performance Buzz (PB) and In-Play Dividends (IPD) as it keeps me interested and gives me something to look forward to during match days. Plus the invertibility that with good performances players share prices will rise.
I have however made most of my money through capital appreciation. Finding players early before other traders is easily one of the most satisfying things on FI. It’s a great feeling when you get a little gem who’s underpriced and you sit and watch their price rise as they break into the first team or hit form. One of the bittersweet things about FI growing means that more traders make little gems harder to find.
Biggest Winner (Player), What happened?
I think buying Jadon Sancho for £1.74 was my best and biggest trade in terms of percentage increase. There’s nothing better than buying into a player and just watching their price rise pretty much every week, especially when they’re a young British star too.
I have also made a tidy profit out of a couple of other players like Kevin De Bryune, Joan Jordan and Kai Havertz more recently, with all of their share prices over increasing 100% for me.
If I had to choose the favourite trade I made it would definitely be Joan Jordan. I watched him play for Eibar last year and loved him straight away, he’s now got a move to Sevilla and has turned into a PB beast.
Biggest Loser (Player), What Happened?
I’ve had a couple of painful trades, I think everyone has if they’re honest. Some players I sold up and took the loss on, whilst others I rode the wave and held out until they turned it around.
An example of a player I’m currently holding who’s struggling for me is Mickaël Cuisance. I purchased over 500 shares and he’s down about £105 for me. I’m not too worried though as I believe he has a lot of potential. I bought him with the intention of him being a long term hold so patience is key. It’s always important to remember why you bought players when they are on a dip and if nothings really changed then stick to your guns. With Cuisance, I expect a rise once he plays and does well for Bayern. In terms of his share price, his transfer to Bayern Munich wasn’t the best as his game times been reduced, but his time will come.
Another player who cost me a bit was Sergio Canales. This was more annoying because I love him as a footballer. I bought shares in him at his peak last season and rode the drop for ages waiting for him to rise again. Unfortunately, he never did and I eventually sold for a big loss. It hurt me badly that one, but it taught me the lesson to not get too attached to players and know when to move on. You can always buy back later on.
Do you have a trading strategy on Football Index?
My trading strategy, if I’m honest, could do with some refining as I’m very impulsive and dabble in too many players. I’ve had up to 268 players in my portfolio at one time but I’ve trimmed that down to 201 now, and want that to drop to the 100 mark.
I mainly look for players who have a reasonable growth opportunity who haven’t been unearthed yet. I try and look for value in younger players and spend a good amount of time researching my players to give me confidence in them before I make a purchase. This requires a lot of patience though which sometimes I struggle with.
I don’t really like selling players at all but I try to only sell players in profit where I can. Selling a player in the blue is like giving up on my research and if I am patient, they will normally rise again. As they say, the cream always rises to the top.
I also try to only buy players that are in a good age range and suit the matrix or youth potential. At the end of the day if it was easy then we would all be rich and FI can sometimes be so volatile with trends, rumours or injuries.
What is your advice to new traders on the Football Index?
My advice to new traders is to take it slowly in the beginning and make a point of learning the rules and how things like dividends work. Understanding what you’re doing as well as what influences players share price is so important and it’s something I didn’t do, which made it hard work for the first 6 months of trading.
Researching your players before you buy is so important. Have your own reasons for buying shares in a player and don’t just go off peoples ‘tips’. It’s the same when you’re selling too, do your own research and have your own reasons for every trade you make.
Listen to podcasts if you don’t have time to read up or research things, there’s a couple of good ones about that are really helpful.
Use twitter and other sources to help you get a feel for players in favour and players that have been hyped up already. If you see that a player has already been plastered all over Twitter it might mean that they’re already at an inflated price.
Depending on your risk appetite it can be costly chasing the popular players on twitter posts. Find a strategy that suits you, there’s a lot of different ways of making money on FI so make sure you choose the one that suits you best.
Portfolio diversity at the beginning will also help you minimise risk and help spread out the loss of you get any. It’s also a great way to learn how FI works as you’ll see what causes different players share price to rise or dip. Losing a couple of pennies on a player you have 10 shares in when you first start might teach you a lesson that stops you from buying 1000 shares in a player and much greater losses.
Finally, understand that FI is such a great platform, but be patient as it won’t always go exactly how you want it to go. Not everyone makes money, so play to enjoy yourself and don’t deposit more than you can afford. Good luck!