It has been a rollercoaster of a week on Football Index. Speculation of further drops in the build up to the product changes on Thursday led to plenty of players having no instant sell price.
Once the changes did go live, they were at first met by optimism as the new function provided some transparency via the market depth function and demand increased. That did not last long.
A few traders saw this as an opportunity to get out and sold up leading to a huge supply of shares at very low prices. Friday was pretty depressing and one of the worse days in Football Index history as quality players like Neymar and Jadon Sancho sank to new lows well below £6.
However, the recovery has been brilliant over the last two days and it is so refreshing to see some rises once again.
The combination of a thin market, the market depth function and a mismatch of traders wanting to stay or leave Football Index sets up for an environment full of opportunities to the enterprising trader.
In fact, the new era of Football Index should suit us, who are willing to understand the market better than the average user, better than ever.
The past on Football Index
The name is the same, the players are the same and many of the users of Football Index are the same. But the platform is completely different now. The game has changed.
The new mechanism provides trading opportunities that were not previously there. In recent weeks I have been discussing issues around liquidity and this is a serious problem when supply greatly outweighs demand and traders are desperate to sell at any price.
However, the lack of liquidity can also provide great opportunities in this market. We can view the market depth and use the wild price fluctuations to make timely trades. In general, when there are a few particularly high bids, it can be wise to sell and when there are no high bids - buy.
By applying many of the concepts found in this blog we can take advantage of many of the current opportunities and execute a number of profitable trades regularly. This is certainly easier to do on a day like today when the market surges upwards, but I do think this strategy can lead to great profits longer term if you get the timing right.
Overall, I believe that the opportunities in front of us are now very exciting and for maximum returns it may be best to:
Disregard past prices and focus on new prices in this new system
Patiently buy, high quality, value players with low-ball bids
Patiently wait till high bids come in to sell at profitable prices
Buy back into sold players by placing more low-ball bids
Diversify even more to effectively trade in and out of more bids/offers
Hold a percentage of your portfolio as cash balance for any significant market drops
We have plenty of matchdays coming up and this should help keep the momentum around Football Index high. However, I do expect the upcoming weeks to be a bumpy ride and unless Football Index bring something else in (Which is very possible) the market will remain fragile and unstable.
This can be frustrating at times but also creates plenty of opportunities. Further information on how to maximise your profits by using these price fluctuations with a special mention to the new mechanism will be discussed further on Football Index Club in due course.