I haven’t written for a few weeks as I have been dedicating all of my time to the Index.
I cashed out my money around March, to pursue other ventures.
However, all roads pointed straight towards the Index, so on the 1st May 2018, I got back on & have been researching thoroughly since.
I love football & writing about the index, so had to restart my blog.
This post is due to the knee jerk reaction overnight, defenders are now being purchased as traders look for value in the market.
Picking the Best Defenders
The Science behind Trade Styles
Football Index is growing at an amazing rate, every new trader that is welcomed to the index brings fresh money to the table. More importantly, they bring fresh ideas. This is absolutely vital to the growth of the Index, as if we all believed in the same strategy, Pogba would be £500 a share & most other players would be at IPO level.
Although we all want to make money, it’s great that there are multiple ways to be able to do so.
Do you want to earn dividends? If So, purchase the best Media Buzz players… or the highest performing players on the pitch.
Another approach is to buy youngsters which have a chance of progressing and becoming a star.
These above styles go hand-in-hand. Let me explain why.
This example consists of Trader 1 who buys established players & Trader 2, who buys potential.
Trader 1 has joined the index hoping to earn dividends, so he will look towards the Top Players.
After looking through the Index, he has spotted Marcelo, valued at £2.99, so decided to purchase him.
Trader 2 has joined, hoping to purchase a player who may become a star one day. He decides to purchase Trent Alexander Arnold, a young Englishman at a Premier League club.
Trader 1 has no interest in TAA, as he wants the ‘here and now’ players as opposed to buying for the future.
Likewise, Trader 2 doesn’t want to buy players who have reached their maximum ability.
The state of the current market is now heavily skewed towards ‘Trader 1’ type players, as in many cases they are cheaper than players who have the potential to be stars.
This would increase the trading activity for ‘Trader 1’ type players, meaning that the price distance between Marcelo & TAA would then decrease.
This is where it all flips around & starts to snowball!
The ‘Trader 2’ type of trader would then be looking through the index, and see Marcelo & TAA similarly priced.
As Trader 2 wants a player for the future, he would then add TAA to his portfolio, as he senses this is value.
This literally goes on and on, as it’s perspective value between the trade styles.
Remember, not every trader sees the same value!
Why are Defenders being purchased all of a sudden?
Traders have noticed gaps in the market.
Neymar hasn’t moved in price for a while, in fact he’s on a small decline now due to limited dividend returns, Ronaldo is also out of the media eye as he’s settling in his new Juventus side.
Defenders have been highlighted as the value position… & I cannot argue with this.
The most expensive defender is £3.88, Midfielder is £9.79, Forward is £13.41.
It’s not as easy as suggesting that the defenders should be worth £9.79, as I will explain.
Defenders are definitely undervalued in my opinion, as for many Top Clubs, there are defenders who can return close to 10% with just ONE performance buzz win. This is actually quite phenomenal.
Traders are also noticing this, hence the rises in the Top Performers such as Alex Sandro, Joao Cancelo, Marcos Alonso & Jordi Alba. These players have BIG average PBs.
Why are they being defenders instead of forwards?
Defenders WILL win Top Defender & also have the chance to win Star Player dividends, which is something you need to be capitalizing on to become a better trader.
If you look at forwards rather than defenders, you are heavily limiting your dividend yield potential.
Not only this, you are also missing out on the current price spikes for the top performers!
I don’t believe in cross positional comparisons, for example comparing Joao Cancelo to Paul Pogba, as the Average Performance Buzz score doesn’t mean a thing.
Pogba can’t win Top Defender, Cancelo can’t win Top Midfielder.
However, what we can compare is Dividends Earnt (£).
The highest earning FWD is Messi who has earnt £1 in PB.
Parejo is the best midfielder, having earnt £0.80.
Dani Alves is the Top Defender, having earnt £0.55.
As you can see from the above, the Top Defender dividend has been earnt and split across more players, which does prove there is more competition in this position.
However, to nullify the claims that ‘defenders are a complete lottery’, I looked into the Top Earners…
From the Top 25 Dividend Earners for PB only, there are 10 forwards, 8 Midfielders & 7 Defenders.
This shows that the Top Defenders are able to hold their own against the other positions, if there were 2-3 defenders I would agree that it’s more of a lottery.
Like in every position, the players who will be in the mix to win dividends every week, will come at a premium price.
How far will defender rise?
Well let’s look at David Silva, he has earnt £0.40 in Performance Buzz dividends last season. Priced at £3.54
Alex Sandro, who has many more years left in the tank, has also earnt £0.40 in dividends but is priced at just £2.60
Almost £1 difference!
I am really enjoying the Football Index growth, which reminded me of the Sky Sports Advertising deal…
I haven’t seen a single advert yet, but have watched every game shown on Sky Sports Football / Premier League / Main Event so far.
What will the growth be like when these adverts hit during a Premier League game?