February 10

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Football Index Tips for 2021: Building and Managing Your Portfolio the Right Way


Last Updated on April 15, 2021 by Samuel Waihenya

Navigating the Football index platform as a beginner can be a bit of a minefield.

The company doesn’t really do enough onboarding for new customers to help them get to grips with all the concepts behind the product.

What’s even more frustrating is that Football Index’s official documentation is a bit shallow and doesn’t offer readers any insight beyond what a dividend is or what the different pay outs for match days are.

And that is a sure-fire way for new traders to lose their hard-earned money, as the platform is a complex beast.

So, with today’s article, I have taken the time to put together 15 Football Index tips that should steer new users in the right direction when it comes to trading and making money on the platform.

Let’s get started then…

 

Tip 1: Start with a small sum and set realistic expectations

As with any form of gambling or investing, you should only put in amounts that you are comfortable with and can afford to lose.

Football Index Tips - Be Gamble Aware

On the Football Index market, there are a myriad of different factors that can have an impact on a player’s price, and as a beginner you won’t have acquired the foresight to know precisely when to buy, when to hold and when to sell.

Grab A Copy of the Player Price Movement Guide!

Discover 13 of the most common factors influencing player prices on the Football Index, so that you can make more informed and confident trades!

So, you’ll want to put the stabilizers on first.

Limit your first deposit to a small sum and have a play around with that first. See what causes prices to rise and fall, and carefully monitor the market trends for your first few days or weeks.

Then once you’ve gained a deeper understanding and increased your confidence with regard to player selections on the initial investment, you can ramp up your deposits and hopefully reap the rewards of this patient approach.

Another key point is to have realistic expectations when it comes to your expected return on investment.

Long gone are the days where you could make 600% ROI in the space of a couple of months.

Instead, look at setting realistic goals like making a 25% return within a year.

Now that is a conservative figure that I’ve given based on the sort of ballpark range you can expect in a traditional stock market.

In reality, it’s still very possible to make 50% to 100% return on investment within a year, the only caveat is that it’s going to be a bit harder to achieve those heights when compared against the Football Index market’s formative years.

 

Tip 2: Understand what gives players their underlying value

Football Index gives its customer base five ways to win on its platform. These are:

This means that any players you’re thinking of acquiring or are currently holding should be a good performance fit for at least one of the aforementioned categories.

After all, the Football Index’s commitment to paying out dividends is the primary reason that gives the players on the market any real sort of value.

Without dividends, we’d simply be playing a game of Fantasy Football, except on a much wider scale!

 

Tip 3: Don’t forget the dividend deadlines!

With so many different ways to win on the platform, it’s easy to be overwhelmed by it all and forget the different dates and times when it comes to eligibility for the pay outs.

So, I’ve made this really straightforward by crafting up a table that gives you all the dividend information that you need to know…

After all, you’d probably be gutted if you missed out on one of the generous dividend pay outs if you didn’t make the necessary cut off point by purchasing a player too late.

 

Tip 4: Avoid panic buying and selling

One of the easiest ways to lose money on the Football Index is by making rash purchasing or selling decisions.

I’ll give an example to illustrate this point more succinctly…

Let’s say you hold a player that’s falling sharply in price because of a major injury.

Football Index Tips - Avoid Panic Buying/Selling

Unless you’re able to exit the trade within the first five minutes of the news breaking out, you will have missed the boat and you will likely end up selling when it’s too late at the bottom of the price curve.

This is the time when you need to believe in your reasons for holding the player in the first instance.

If the player in question is capable of scoring well on the performance buzz matrix, then perhaps consider topping up and reducing your average buy price.

People often forget that a big injury doesn’t spell the end for a player’s prospects on the Football Index, as you only have to look at Neymar’s sharp price drop after his horrific ankle injury to see that recoveries are possible.

Conversely, avoid falling prey to the fear of missing out (FOMO), particularly on major transfer stories.

Source: The Transfer Pattern

Once a player’s move is confirmed, the price can drop as much as 30%, and in some cases even more, so be sure to either get in well ahead of the transfer confirmation or avoid the player altogether and look at another target.

 

Tip 5: Diversify your portfolio

Spread the nest egg.

You need to have an idea for how much of your budget that you want to spend on “blue chip” premium players, as well as how much you wish to set aside for the bargain-bin type players too.

In most cases you’ll find that the premiums command their current price level because they win dividends more frequently, but the percentage gains you stand to make from holding many of them won’t be as great when compared with options at the lower end.

Conversely, holding too many cheapies can sometimes leave you with a stagnant portfolio as they usually win dividends less frequently, but the rewards when they do sneak a performance buzz win are much more worthwhile.

So, you can see that timing is also an important part of portfolio selection.

You’ll ideally want to have a good mix of both premiums and cheaper options, as this leaves your portfolio less susceptible to big drops if one section of the market falls after an event or announcement.

 

Tip 6: Get ahead of the crowd

One of the keys to success on the Football Index is having good foresight.

Being able to accurately predict what the market will do and acting accordingly (either buying before a purchase frenzy starts or selling before prices are at risk of dropping) will serve you in good stead.

 

Tip 7: Don’t rely solely on historical data when assessing performance buzz prospects

Using historical win data for performance buzz research is good, but it’s often not enough when used in isolation.

You also need to look at the data that sits underneath performance buzz.

For example, a player loses 15 points for being on the losing side, and gains 18 points for being part of a winning one.

That’s a 33-point swing right there, which I would say is highly significant.

Players who have had difficult games in succession will often have poor performance buzz scores for this reason, as their team will be starved of touches and ball possession.

You will only be able to make an accurate assessment of a player’s performance buzz capability by looking at the underlying statistics like passes completed, dribble attempts, tackles made etc.

By doing this, you’ll be able to uncover the players who perform well in spite of average performance buzz scores and who are likely to score much better when a run of easier fixtures presents itself.

 

Tip 8: Reduce your player acquisition costs via bids

The Football Index introduced the matching engine as part of their transition to a fully-fledged order book system.

This means that you can purchase players either instantly via their “Buy Now” price or by “placing a bid” which is the cheaper way but share availability is not a guarantee.

Football Index Tips - Use Bid System

Buying through bids allows you to save a bit of money and allocates a larger portion of shares for the same capital outlay than if you simply purchased via buy now.

However, be aware that there is usually commission to be paid on bids, which isn’t the case if you bought immediately via Buy Now.

 

Tip 9: Stay up to date with football-related news

It should go without saying, but being part of the Football Index requires you to keep on top of the happenings in the world of football.

This is so important, especially when it comes to transfer speculation.

Club moves usually affect player values on the Football Index, and in some cases, even managerial changes can have an impact on player prices as a team may perform better under new stewardship.

Grab A Copy of the Player Price Movement Guide!

Discover 13 of the most common factors influencing player prices on the Football Index, so that you can make more informed and confident trades!

There are so many media outlets and news sources that it can be cumbersome to keep on top of who’s “in the know” and who’s just peddling false stories for the sake of social media acclaim.

Which is why we’ve made it easier for you with our transfer reliability tier ranking system, which rates the reliability of journalists for some of the most popular clubs in the world.

Football Index Tips - Follow Football News

 

Tip 10: Keep track of your transactions with a spreadsheet

Using a spreadsheet allows you to keep track of your purchases and sales in a much more intuitive way, especially when compared against trawling through your transaction history on the Football Index website.

A spreadsheet allows you to easily calculate your portfolio growth over a particular time frame and equally, inputting your performance buzz returns provides you with an understanding of what percentage of your dividend winnings have contributed to your overall profit figure.  

The informative video below shows you how to make use of spreadsheets as a way of keeping track of your portfolio growth…

 

Tip 11: Lock in your profits

A lot of people tend to get greedy when they see all the green profit figures on their portfolio screen.

What they often forget is that those numbers are just that… numbers!

Football Index Tips - Lock Profits

Until you sell that player who has risen greatly in price and withdraw the proceeds to your bank account, it is not profit.

On the other hand, you also don’t make a loss until the player in the red that you’re holding is sold.

So, it’s important for you to continually assess the players who you hold in your portfolio and if you come to the conclusion that a player has reached the limit of their growth, then take the opportunity to cash in and bank the profit.

 

Tip 12: Don’t forget the 2% commission on trades

For every player sale that we make on the platform, the Football Index takes a tiny portion (2%) as their payment for facilitating the trade.

At the end of the day, the Football Index are a company just like any other and they have to make money themselves, as this keeps them in business and enables them to pay the generous dividends that are on offer.

A 2% commission on sales is a fair price to pay for the cost of doing business, considering that there are no monthly charges to access the platform, plus we don’t pay taxes on earnings that we make via the platform.

Just to illustrate how commission works, I will use Phil Foden as a straightforward example:

  • Foden: 100 shares purchased at £4, total cost price of £400
  • Foden: 100 shares sold at £4.05, total sale price of £405
  • Commission is 2% of £405 = £8.10

So, despite the fact that you sold Foden 5p higher than the price that you acquired him for, you will still lose £8.10 due to commission and this would net you a £3.10 loss on the trade overall.

Football Index Tips - Remember Commission Cost

Ultimately, even though your portfolio benchmark would be showing a green profit figure, until you factor in the commission to be paid in the event of a sale, then the actual profit figure won’t be exactly what the page on your portfolio indicates.

 

Tip 13: Avoid so called “club bias”

As football fans, most of us have particular players who we really like watching when the weekend games come along.

As a Manchester United fan, one of my favourite players is Aaron Wan Bissaka, as his ability to time tackles to perfection so consistently is a skill that I’ve rarely seen executed so effectively.

But I wouldn’t be buying him on the Football Index even at 69p as I know I can find defenders with much greater performance buzz threat for a similar price.

So, separate your club affiliations from your Football Index purchases.

Being an avid fanboy can lead you to make trades based purely on emotion, which often leads to poor decisions and tying up money in players in the hope that they perform, rather than on consistent statistical evidence.

 

Tip 14: Settle on a suitable trading strategy

Different traders will have different budgets, risk appetites and time commitments which means each trader is likely to have a slightly different trading strategy.

I talk about this at greater depth in my Trading Strategy Mastery course, so you can check that out if you’re after more insight there.

Once you find a working strategy, only deviate from it unless you believe it to be absolutely necessary in order to avoid losses or compound gains.

There can often be lots of conflicting reports regarding players in the media, so it’s important to stick to your plan of selling once you hit certain profit thresholds and likewise keeping hold in spite of a bad media report or a lacklustre performance.

You’ll find that some players take longer to progress and reach higher levels of performance, so having the necessary patience is key.

 

Tip 15: Seek out alternative viewpoints

The last piece of advice I wish to give is – don’t bury your head in the sand!

Learn to seek out alternative opinions from other traders and in other places like forums and social media.

Someone else may be able to look at players you hold from a different angle, and they may offer you a fresh perspective which you hadn’t thought about initially.

You might also want to check out one of our own product offerings called the Index Scholar Academy.

It’s a website dedicated to analysing player performances so that you can save time doing all the gruelling research and make your own judgements using the information that we provide.

We discuss both the positives and the negatives of every player that we evaluate, so you won’t just be getting the same old regurgitated pumps from a social media tipster.

So, check out the Academy for yourself with our 7 day risk-free trial.

We’ve got a Football Index beginners course and a trading strategy course available for immediate viewing, along with detailed player performance scouting and PB star ratings for the majority of footballers in Europe’s top 5 divisions.

So if you like the look of it, try it for yourself with our 7 day risk free trial.

 

Final Thoughts

So that brings me to the end of this article.

I hope you found the Football Index tips that I shared with you informative and useful.

Feel free to leave your thoughts about the article in the comment section down below.

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About the Author 

Samuel Waihenya is 24 years of age and has been trading on the Football Index for the better part of the last 6 months. He's made mistakes and learnt plenty along the way, such that he is now fully confident in his trading. As a result, he seeks to help others make the most out of this fantastic platform that does in fact offer financial returns that are "too good to be true" :)

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