Football Index Mistakes &
How to Avoid them
Updated December 4th 2019
BY THOMAS PADDOCK
Table of Contents
What is a mistake?
A mistake is defined as an act or judgement which is ultimately incorrect. Mistakes when trading can be emotionally tough, as it often means you are going to be losing money.
Today I will be discussing the kind of mistakes you can make, more importantly, teaching you how to prevent or overcome mistakes.
A few brief examples of how to avoid mistakes would be:
- Avoid Buying from the Risers List without reason. This can be classed as the Fear of Missing Out.
- Take a Break when required. You can't force a Good Trade.
- Remember you aren't competing with anyone else. If someone else boasts abouts profit, you need to remain calm & remmeber it's not a competition. Plus most people only talk about their winners!
Top Mistakes on Football Index
Above are the top mistakes I have been contacted about regarding trading.
Note, these are only Football Index tips as I don’t trade Forex, so it’s probably not applicable!
I will go into further depth below about these mistakes, paying close attention on how to help beginners avoid these mistakes.
Why Should I Avoid Risers?
Let me start by declaring that by no means am I stating that you should avoid any player which as risen in value.
As a trader, it’s your role to pick profitabe trades, you must assess each potential trade for profitability. Using an example, at present Gabriel Jesus is on the ‘Risers’ list, which means he is one of five players whose value has increased the most, in the last 24 hours.
Take note that he’s not a guaranteed starter, with Aguero competing for places, he’s currently trading at £3.60. This price sits 50p higher than Lacazette, 70p higher than Aguero himself & over £1 higher then Lewandowski, Suarez & Mbappe.
The question I have to ask myself here is, how much higher can he go? If I only had £100 to put on a player, I’d sooner be shifting into Suarez and co!
If you decide to buy Jesus to Flip at £3.60 a share, it’s worth noting that even if he rises to £3.70 a share, after commission you will be receiving just £2.60 profit per £100 spent. With his current competition in his price range, it’s not the safest of gambles!
That being said, if you are a long term holder and can see Jesus becoming top boy for Man City, his price may rise up to the competition such as Rashford etc, who are closing in on £4 a share.
To conclude, when buying a Riser, you need to assess the price he should rise to, consider commissions and also evaluate how long you plan on holding this player for.
The key for flipping players, is to be ahead of the market, finding that player before he becomes a riser, to ensure profits.
Understand when you’ve made a mistake
It takes courage to admit you have made a mistake, but unfortunately is often not until the mistake has occurred that you realise you made a bad move!
If you find yourself pouring money into a player, without any ‘end goal’, even this is a mistake. Not all mistakes will cost you money, but long term, traders that have solid plans will have higher profits. When I enter the market for a player, I highlight his opponents, their share price and trading activity, the maximum price I can allow the player to reach before cashing out with a profit, the minimum price he can reach before I close my position on the player.
Selling at a loss is the hardest thing to do, as all traders live with the hope their player will reach the high-point again. It exists in all traders minds and doesn’t go away… but setting up a trading plan can help you minimise losses on a bad trade.
Learn when to stop, to achieve success
This works both ways for Profitable days and Not so good, losing days.
We will start with the bad days, so we end on a high(er) note!
When you have a losing day, it can be quite emotional. Nobody wants to lose money!
These emotions can cause you to chase your losses, which is an easy way to lose more money. It’s even happened to me, it will most likely happen to you. You will start to scour the market, looking for the slightest profitable opportunities, often your reasoning will be ‘He should rise’… Really what you are saying is please, please rise, as nobody can tell the future. This will end up with you risking even more of your bankroll on trying to break even, when often the final outcome will be that your losses have plunged even further.
When you have a profitable day, that is also emotional. It gives you a glorious feeling, as if everything you touch turns to gold.
This is also a dangerous emotion, as it will lead to over confidence, which leads to placing unnecessary trades and risking your bankroll, when your attention can be focused elsewhere.
Dealing with Mistakes
Depending on your self control, it can vary how you handle a mistake. With Football Index, we are very lucky in that a mistake can easily be rectified with minimal costs, as player share prices vary by pennies.
However, it’s not a good feeling to make a mistake & it can lead you to feel down or confused.
This little piece of text is to remind you:
It’s not a mistake to make a mistake, it’s a mistake to repeat the same mistake.
As long as you are learning from your mistakes, you are making progress.
Avoid Certain Twitter Users
OK… I over emphasised on the 1.3m Profit quote… but it’s so annoying they may aswell post that!
On a serious note, be very aware of the twitter accounts who post crazy stuff like I have attached in the image. When I started on Football Index, I saw there was a high twitter presence. I followed a user who had gained £17,000 profit, thinking WOW, I’m onto a winner if I ‘follow’ his trades and advice. The Issue: He just kept banging on about Alex Sandro and Lukaku being value and their price is due to rise IMMINENTLY.
Worried about missing out (FOMO as I will discuss next), I invested a few shares due to this tipping *GOD*. Prices dropped, yet he kept posting the same old stories about the price rise being due to rocket the player up the price list. The next thing I hear from the user is that he’s finished with the Football Index due to the instability of the markets… which brings me onto Annoying Twitter User 2:
I STARTED WITH £10 AND NOW I’M RETIRED, THANKS FOOTBALL INDEX.
Well, it’s not quite like this, but you get what I mean. This member is a known twitter fraudster, he’s actually earnt his money from spamming referral codes and not from trading!
On my website, I may post my opinions, but in no way, shape OR form am I benefitting from the posts I write. My portfolio is currently heavily linked to Griezmann as I got a bargain price, I will hold this until next summer and cash out. I simply LOVE writing about Football, these player articles are really making it super-fun for me too!
Can Twitter be useful?
YES. There are plenty of Twitter accounts which post useful analysis of player performances, averages etc, which we can use for our benefit.
I am also working on analysis software, which will be a great addition.
I also keep an eye on the bogus accounts which post stories and articles to help improve their own portfolio, as it gives us a chuckle!
If you would like into the Football Index Messenger Group, use the contact form and I will get you added in. It’s the Football Index Secret Handshake Club!
Just leave a comment below!
Managing Greed on Football Index
Failure to manage greed is a huge mistake.
It’s also one of the hardest walls to climb! Let’s say for example you have shares in Lionel Messi at £6 a share… he rises to £7 a share.
- Your Heart Says: Cash Out for a Profit. £1 profit per share… WOW!
- Your head says: Stick it out. Can he reach £7.50…£8….£9…£10… think of those profits.
It’s not easy to pick which route is correct, it’s even harder to make a decision. This often leads to a mistake, as you haven’t made a solid trading decision.
The Truth? There is no right answer. It’s a part of the trading cycle.
The way I control greed is to remember, pretty green figures on a screen aren’t profit. It’s only profit when the money lands in your bank.
You can be holding onto that £1 profit per share in Messi for 2 years, but if that profit figure drops and you’re looking at a loss, your opportunity has gone, as well as your money being stagnant for a long period of time. However, with this example being Messi, you’ll have earnt a few quid in dividends!
Why You Should Sign Up at Football Index
Some fans have fantastic knowledge of the game, on Twitter you often see players discussing tactics in-depth etc. Another thing I picked up, is that they know of their teams raw talented players, footballers which are yet to set the world alight.
What if fans could put their extensive knowledge to work, making profit from this in the process? With Football Index YOU can.
It’s great fun & initially was something which stopped me from wasting money on gambling on sportsbook betting.
The Index is constantly live, so you can always take advantage of a nice trade!
Football Fans love the game, Football Index makes it possible for you to profit with your knowledge. Read our Football Index Review for more information on Football Index. You can also take advantage of the Football Index Referral Code HERE