What to avoid doing on Football Index?

Updated: Feb 3, 2020

Sometimes Football Index can feel like a platform where it is impossible to lose money. I know this is not true as when I started trading on Football Index a few years ago with just £10 and did not have a clue what I was doing, I did end up losing money in my first few months. From my experience, the best way to become a better trader is by spending a lot of time researching, being patient and continually learning from any mistakes made and adapting accordingly. With that being said you can also learn from mine and other trader's mistakes, so here are 7 tips on what you should avoid doing on Football Index.

1. Avoid buying players from the trending list without researching the player first

The trending list is a list showing the current top 5 risers based on a percentage. Sometimes there will be players on the trending list that have increased dramatically in a short period of time and will continue to increase in price. However, what we see extremely often is the player's value decreasing dramatically - not too long after the player has appeared on the trending list. The reason for this is that often traders will sell their player after the dramatic rise to cash in on the profit. When buying from the trending list you can also lose out when a player is 'pumped' and 'dumped' - therefore just remember to research the player first and consider if you see them as good value at their new, increased, price.

2. Avoid buying players who will not earn you any dividends at any point in the future

Every player's value on Football Index is ultimately driven by future dividend potential. If player's were unable to return dividends then there would literally be no point in buying the player. Therefore, if a player has retired, plays for a team that is ineligible to earn dividends and is unlikely to ever play for a team that is eligible to earn dividends again then they are worthless.

Arjen Robben is worthless now he is retired

3. Avoid instant selling out of panic

It is almost always best to market sell instead of instant selling, but, if you are going to instant sell - do it for the right reasons and not because you panicked. For example, if a player that you hold has dropped dramatically due to an injury and everyone is selling the player, it may be easy to panic and also sell. This is not a good trading technique, in this situation it is important to stay calm and consider your options, often the player will increase again in the future. Unless you think you could use the money more wisely before they start to recover from the injury (and so does their price from the drop) then it may be worth keeping the player. This type of situation will depend on the player's age, the extent of the injury alongside other factors. There is more information on when is best to sell a player here, but the important thing to avoid is instant selling due to panic.

4. Avoid overtrading - (buying and selling too frequently)

This one is one of the hardest to avoid doing and how much you trade will be different for each trader and their circumstance. However, in general you don't want to be buying and selling too frequently (as a percentage of your total portfolio) - especially if you are instant selling at the top end of the market where there are greater spreads. The reason you want to avoid doing this is because Football Index charge a 2% commission on every trade and the commission charged will be even more if you choose to instant sell. Often if you are patient and give your players time to increase in value then you will be more profitable.

5. Avoid being too stubborn

Try and be flexible with your approach to trading. If your strategy isn't working or if it was working, but, is not anymore - don't be too stubborn. Sometimes you may need to change your strategy slightly to suit the trend of the market. For example, prior to news of the 2019 share split, I had a portfolio comprising of mostly very cheap, lesser well-known, young players and I missed out on many opportunities to buy into the top end of the market that was growing at fast rates building up to the share split. If I had have been less stubborn then I could have made some massive returns based on capital appreciation by moving into some of these top end players. The key here is either to keep a diverse portfolio, have a method that works for you and stick with it or if your method is not working for you - try something else and see how it goes. Patience is often key when holding player's you believe will increase, however, do not become stubborn. Sometimes you will be more profitable taking a loss and moving on to a player that will make you more profit through capital appreciation / dividends.

6. Avoid buying at peak prices

It can be very difficult to judge when a price has hit it's peak or whether it is going to continue to rise. However, it may be useful to look at the player's price graph to get some indication on this. If the price has risen dramatically in a short space of time, then often buying the playing can be risky unless the player's circumstance / performances warrant the price change. The only two players in my portfolio that are currently at a loss are player's that I have carelessly bought after a large increase. This is especially important with regards to transfers. Often player's prices will increase huge amounts due to transfer speculation. You could end up with a large loss on a player if you buy at a peak price built up on transfer speculation if transfer talks break down.

I paid a peak price for the player in the middle

7. Avoid withdrawing when your your at a loss

I imagine most traders reading this, like myself, have no intention of withdrawing all of their funds anytime soon and also can not imagine being at a loss either. However, I know from a few years ago when I was at a loss that I did withdraw what I had in my account. If I had have left those shares to just increase naturally alongside the platform then no doubt my portfolio would have at least tripled. Patience is key and there is nothing wrong with making mistakes, especially when you are new to the platform, as long as you learn from these. Therefore, my advice to any new traders would be to keep going with Football Index as we are going to continue to see humongous growth in the platform over the next few years and there are so many opportunities to make a lot of money.

Final additional points

A few finals points to mention on what to avoid and be careful with. Be careful with IPO's as it can be quite risky to buy into them as quick as you can when released and they can decrease soon after. I would avoid ever buying a tracker. Unless a player is likely to continue returning you dividends, avoid keeping your shares in a player after a large increase for too long, market sell and move onto your next player if you no longer see them as good value. Be careful with ageing players, they will all retire one day.

I do believe if you are able to avoid making the above mistakes then you will almost certainly make very good profits on Football Index!


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