Patience really is a virtue! It’s a key factor in trading, you can’t expect to buy futures in a particular player and cash out with hundreds of profit minutes later. There are cases where you can make quick profit, IPO’s, Transfer Related Trading, Buzz Trading.
However, these are just ‘nice earners’, it’s not the everyday trading occurrence.
Don’t worry if you have to sit on some players for a while, the time will come to sell. In the meantime, you qualify for Performance Buzz & Media Buzz dividends!
Be as realistic as possible with your expectations with Football Index.
I don’t mean this in a negative way, what I mean is that it’s highly unlikely that you will make £100,000 from a £20 deposit. That would definitely be an achievement!
If you keep your feet on the ground, you will be able to consistently make money, as you will avoid over-trading, which is where you are trading for the want of money (greed), as opposed to trading because you see a genuine profitable opportunity.
Greed is one of the biggest threats to your bankroll, there is a good chance you can turn a quick profit, however, there’s also a great chance you can undo all of your great trades!
You need to understand that each trade is it’s own transaction, a big mistake in trading is to be influenced by your own previous trades. If you have a fantastic trade on one occasion, making a lot of profit, doesn’t mean that you are guaranteed to hit a winner, but it does mean you are becoming successful.
It can be very easy to increase your exposure on a certain player if you have had a good run of trades, as you genuinely feel that everything you touch will turn to gold.
On the other hand, if you are seeking vengeance for losing out on a bad trade, it can be very easy to pump in extra money, ‘chasing losses’, in order to make your money back.
Forcing a trade is a huge emotional move, which is something we need to avoid. To Summarise:
If things aren’t going your way, don’t force a trade.
If things are going your way, don’t force a trade.
Before you purchase a player, you will have a trading plan. Whether this is written down on a spreadsheet, on scrap paper, or even a mental note in your head, the most basic but efficient trading plan is ‘Buy Low, Sell High’.
You will have most likely seen a player you would like to purchase, scouted around other players in his price range and noticed he is a stand out player… and a bargain!
If he’s 20p behind the next best player, what is your approach to this market? Should that player increase, what are your plans for cashing out your profit? Will you wait until (IF) he overtakes the next player in his price range? Or is that too late?
If you set a solid plan before this occurs, you can save yourself from making mistakes. In the past I have been caught up in this situation, not knowing when to cash out my profits, mainly due to fear he would rise lots and I would be missing profit, as I jumped ship too early.
Example with No Exit Plan:
I purchased Eden Hazard for £3.75, when I saw his competitors were priced around £3.90. Eden finally rose to just over £4, before getting injured and his price dropping. If i had an exit plan, I would’ve known the right time to cash out was at around £3.90-£4, instead of not having a plan and hoping his price would just rise and rise. When I finally sold, I made a £40 loss after commission.
Example with Exit Plan:
More recently, I purchased Neymar at £4.61. At this point, Messi was at around £6. Neymar had just moved to PSG, so I expected his price to increase as he would then be the main man. His price rose to £5.61, which was a solid R.O.I. Mbappe had also just signed for PSG, so I thought I would take my profit at this point, as that’s an extra player competing for Performance Buzz & Media Buzz!
As it turns out, Neymar has risen to £6, so I have made less profit than I would have, but I am happy as I stuck to my trading plan and made a healthy profit.
Remember, it’s not profit until you’ve sold the player! I could have sat with 39p more on Neymar, but I wouldn’t have had the money to invest elsewhere.
Bankroll management is vital for Football Index. Sort out your finances so that your Football Index balance doesn’t affect your day to day lives.
What I mean by this is, don’t put all of your money into the Index, as you need money to keep you going! Bills, groceries or even treating the other half to a fancy meal!
If you start trading with your full bankroll, emotions are going to run very high, as it’s life changing when you make a huge profit, but also a complete disaster when your savings drop! Trade Smart by allocating a set amount.