We spoke to Max a couple weeks back about his experience on Football Index and what strategies he uses. He offered us a great insight into how he picks players for his portfolio and what research he does. Read Max’s trader profile below to find out more.
How much money did you invest?
I joined the Football index in late December 2018. I signed up under the £500 risk-free offer, so I thought I’d make the most of the trial and deposited the full amount. I traded with that for a while as I got used to how Football Index works, especially dividends and what influences players share prices.
Since then I have made regular deposits into my portfolio and now my current investment in Football Index is between £2900-£3100. I tend to reinvest my dividends so it’s difficult to say what my exact investment is.
What is your overall Return On Investment (ROI)?
I receive regular emails from Football Index that lets me know my progress. It’s a really good feature as it allows you to track your performance once a month in addition to regularly monitoring your portfolio. As of my last email update from Football Index, I am £2233 in profit.
How did you make your profit from Football Index?
The strategy I use is all about capital appreciation. I went through a small dividend phase where I was buying players in order to chase media buzz dividends but I prefer a capital appreciation strategy.
I found that when I was buying players for media buzz, I never committed a massive amount of money in any one player, which made it difficult to make any real profits.
I do have players in my portfolio who I expect to do alright and have the possibility of performance buzz dividends but my main buying reason is capital appreciation. Diversity is key in any portfolio to spread the risk, it also makes the Football Index more fun when you have more players to follow.
Biggest Winner (Player) What happened?
Well, I’ve had a few good winners. I went fairly big on a few of the Ajax boys before they had their champions league run. I had Dušan Tadić, Matthijs de Ligt, Frenkie de Jong and Hakim Ziyech who all turned out to be great buys. The Ajax run proved that there was value in players even if they don’t play in performance buzz leagues.
Another great investment I made was Alexander Isak. I bought shares in him before his successful loan to Willem II and sold when he had links to the premier league. That’s another great thing of a capital appreciation strategy if you find a young or good player that is under the radar you can make a good profit by buying early.
Finally, Vinicius Junior was one of my first purchases on the index. I bought him as he had just signed for Real Madrid and sold him after he had a few good performances and goals.
Biggest Loser (Player), What happened?
I haven’t lost too much on any one player as I have a conservative strategy. If a player drops badly, depending on the reason I will still hold as long as my reason for purchasing still remains.
One trade that sticks out to me is Sergio Ramos. I purchased shares in him because he was doing really well with performance buzz dividends. It seems as though I jinxed him though because as soon as I bought him that stopped, his form dipped and real Madrid forgot how to play football!
Another I remember was Jayden Bogle. I remember watching my first few Football Index IPO days and watching how much some of the players would rise and thinking, I need in on this! So the next IPO day I got on Jayden Bogle at a ridiculously inflated price, stupidly just expecting him to keep rising.
Instead, his price tanked. Luckily I held him for a few months before selling the 250 of him for around -6p a share less than I bought. The growth of the Football Index platform is mad though because if I was more patient and still held those shares today I would very much be in profit.
Do you have a trading strategy?
Yes, and it has come as a result of learning from all of the above mistakes. I won’t jump in when a player is rocketing up as it’s too easy to get burned. I don’t think I’ve ever purchased a player that is at their peak price.
If a players share price is rising dramatically I try and look for value in similar players to see if there are any opportunities that other traders have overlooked. However, I mostly try to watch as many games as possible and go from there.
I’ve watched around 90% of the players in my portfolio play at least twice. Lots of players on my portfolio are little known, and their share price hasn’t moved much at all. Saying that I have my full confidence their share price will grow in a year or 2, it is just a waiting game. Patience is key in a capital appreciation strategy as you can wait for so long without anything and then one day there’s a huge price rise.
Advice to new traders joining the platform.
Read and learn the rules. This is probably the Best Football Index Guide.
Make a small deposit whilst you are learning the platform and make mistakes. Also, take into account your investment size when buying players. This is because you won’t always be able to buy every player you like unless you have an unlimited money pot.
For this reason, I think it is important to keep a list of the players you would like to buy and their current price. Monitor these over a few weeks and you can get an idea of how the market reacts to form/injuries etc.
Other things to watch out for are social media accounts and other traders pumping their own players. Some traders will put out several posts about scoring hat tricks in training games trying to convince you to buy shares. You should always do your own research on any player before you buy shares.