This week we had the pleasure of talking to Ed about his Football Index journey. He tells us about how he has made a return on investment of around 240% since he joined the platform back in April 2017. He tells us about his strategy which splits his portfolio into 25% of players purchased for dividends and 75% of his players in his portfolio chasing capital appreciation. Read more about how Ed researches and picks players in hope that their share price increases. 

This week we had the pleasure of talking to Ed about his Football Index journey. He tells us about how he has made a return on investment of around 240% since he joined the platform back in April 2017. He tells us about his strategy which splits his portfolio into 25% of players purchased for dividends and 75% of his players in his portfolio chasing capital appreciation. Read more about how Ed researches and picks players in hope that their share price increases. 

How much money did you initially invest in Football Index?

I joined the platform at a fairly early stage back in April 2017 when not many people knew about the Football Index platform. I started off by depositing small amounts which I increased substantially as soon as I felt confident in the validity and legitimacy of the product.

Once I was satisfied that Football Index was secure and trustworthy, I looked at trying to understand how the market worked and the game rules. Historically I have never been much of a gambler at all and so I was initially quite nervous about depositing a large amount!

It’s very important to be comfortable with how the market works and rules of the product before you jump in with a larger stake. After watching and trying to make sense of how the Football Index market worked I then made a few more deposits around my 1-year mark.

I haven’t deposited new cash for around a year, but I do use all my dividends to continue building my portfolio.

What is your current Return Of Investment (ROI)?

My current return on investment is 240% which is far beyond what I expected when I signed up. I used to enter a few fantasy football leagues for small amounts and I’d be happy winning £20 in an FPL mini-league, so having a chance to make money on something that I’m interested in really is incredible.

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

I think this question shows how long I’ve been on Football Index as when I first joined FI there was only one way to win dividends and that was through Media buzz. So my initial portfolio was based more around those players who had the potential to win media dividends. It’s really important to learn about Football Index Dividends.

The Football Index platform has come on leaps and bounds since when I first joined, with the addition of performance buzz dividends, and more recently, in-play dividends providing more ways to make money.

As FI has evolved I now have 25% of my portfolio’s value invested in shares of players who I feel can return dividends regularly. All the dividends I earn from these players are generally invested into cheaper players. These players are either young talents that I expect to breakthrough or a player whos share price will likely rise due to a market trend. All of these players bought from dividends are in my portfolio for capital appreciation, although sometimes you do get the odd dividend winner which is always nice.

I enjoy researching players and looking at their statistics to get an initial idea of whether they might be suitable to do well in FI. I tend to look at players to assess whether they display value in performance buzz terms (e.g. the player is well suited to the PB matrix) or in media buzz terms (e.g. players in a non-PB league with links in the past to a PB league).

If after doing enough research I manage to identify a player that I feel is undervalued, I tend to buy a large number of shares in that player which hopefully results in a large profit. A certain degree of patience is definitely needed sometimes, but I do think my portfolio is more set up for longer-term gains rather than the in-play style of trading.

As I have quite a large portfolio I do try to keep a diverse number of players to fit different categories and/or market trends. It’s important to remember that not everyone can be on the index 24 hours a day and accept that you will miss opportunities.

Having a diverse portfolio means I do not have too much stress about having too much money caught up in on one player or trend for example. This gives me comfort that (so far) my portfolio can stand up reasonably to a player or trend drop in the market, without having to worry too much.

Biggest Winner (Player), What happened?

As boring as it is, my biggest winner on Football Index is Neymar. Neymar has been an all-round dividend machine for me, and easily returned dividends that far outweigh the original amount I paid into him. My profit from Neymar alone is close to £10,000 and it has no real sign of slowing up. I fully admit I was fortunate to get him early on the platform but then I suppose you have to give some credit to those traders who took the risk to go big early!

Another decent return I have had is Andrea Pinamonti, the young Italian striker. I got on him last year as I saw him come through the ranks at Inter Milan before leading the line for the Azzurri at the U21 Euros. He’s finally got a chance this year to show what he can do with a loan spell at Genoa so hopefully he will continue to rise. 

 

Biggest Loser (Player), What Happened?

There’s been quite a few losers over the couple of years that I have traded on Football Index. I think the longer your on the platform you get better at knowing when to cut your losses on a trade rather than hold stubbornly and watch a player fall further.

What I do when a player in my portfolio has a dropping share price is to take a step back. I go back through my research process and analyse why the player I hold is falling, asking myself if I would honestly buy them again. If any of the reasons you originally bought them for have changed and you don’t think you’d buy that player again then that shows that it might be the right time to cut your losses and get rid.

Two examples of players in my portfolio with a dropping share price are Ross Barkley and Dejan Joveljic. I’m currently sitting on them as I am optimistic that both of them should get more first-team opportunities as the season progresses and therefore I’m continuing to hold for now.

Do you have a trading strategy on Football Index?

As mentioned above I do hold a fair number of longer-term dividend holds and I don’t really go in for in game trading unless I’m very confident I’m on first which usually I’m not! I try to identify the next trend or market cycle and then position my portfolio before the main rises occur and exit usually well before whilst buying demand still exists.

There are many ways to make money on the index using different strategies which is why the appeal is so wide. There’s also nothing wrong with applying multiple strategies despite many twitter accounts telling you otherwise.

Generally, I would always advise to try and find a balance especially as you begin to put more money in. With In-Play Dividends (IPD) increases it’s probably worth a bit more time trying to identify those players who will also benefit from the new performance buzz matrix scoring system and not just rely on a return from those 30 days.

In addition to this, the European football competitions are just getting underway and with some players involved in 2 dividends eligible games a week, you should see a continuous rise in share price and benefit from IPD’s as well.

Longer-term I think most traders will have an eye on Euro 2020 so it’s worth considering if any players you buy from now will likely be involved in that Tournament. The recent addition of European qualifiers to the list of dividend eligible competitions showed the value in international tournaments. It also could be seen with the U-21 Euros last Summer, with no other football on tv all football fans and traders are watching.

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

As I think everyone says to get the most out of Football Index you need to understand the game rules clearly before you put in a serious amount of cash.

I would also strongly recommend listening to podcasts if you get spare time. There are some really good podcasts on European football which can go a long way to helping identify upcoming talent and players coming into form. The same goes for transfer related podcasts and articles.

I have multiple folders of screenshots for those upcoming talents yet to find there way to the index which will hopefully act as a memory jog as more Initial Player Offering’s (IPO’s) hit the platform.

My final bit of advice is that patience is key. When you are a new trader it is easy to panic about red in your portfolio but always remember your reasoning for buying that player and if circumstances haven’t changed, try to avoid hitting the Instant Sell (IS) button in a panic!

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