Types of Profitable Trade on Football Index

Now that there are so many players available for purchase on Football Index, the options of portfolio plans and strategies are endless. However, there are many common types of trade that most experienced traders will have used at one time or another so being familiar with these can be very useful.

Buying dividend winners

This is the most common approach – those most likely to win dividends are often considered the safest holds. These dividends can be Media or Performance or with luck, both. These so-called blue-chip players are often the most expensive to buy but that hasn’t stopped their prices from rising steadily. This is why they are often the staple of any large account. Of course anyone can buy them, but the downside is the opportunity cost – if you only have a small portfolio, the money may be better invested elsewhere.

You can find a free dashboard of all dividend winners on FootballAnalysis.com and FootballIndexEdge.com.

Flipping in-play

This is a method that appears to be getting more common as Football Index expands. The idea is to react quickly to in-game situations, for example buying someone who has just scored the first goal of the game, or someone who appears to be gaining enough points that they could be in with a chance of winning dividends, which may, in turn, convince others to buy. The plan is to be the first in, so you can get out at a decent profit before others start to sell.

You need to be mindful of the fact you need that player to rise at least 2% to cover commission and that you need to be able to sell to someone else to avoid the spread of instant sell, so it is often wise to take profits before the market turns.

Buying before events

This method is like a drawn-out flipping tactic. The concept is similar to the above but in this case, the time that you hold the player for is longer. Good examples are buying a player who you are certain will rise in an upcoming fixture later that month. The best choices to pick are usually those who have a high profile game or those who will feature in a reduced player-pool day (a single match day). This is because the options for people to buy into for those days are limited, and it is more than likely that if there is a stand out player featuring on that day or one who has a considerably higher average than everyone else, people will look to purchase them.

Therefore, the idea is to be the first one to buy this player, by checking the fixtures well in advance and finding those likely dividend winners. If you do this a couple of weeks before the fixture date, it is likely others will not have looked and will buy after you, subsequently driving up the price and giving you a chance to profit.

The next part is deciding when to sell, as many other people will be doing the same thing – the timing is crucial. One way to try and secure profit is to sell before the game has even started. You can cash in on the price rise and avoid the risk of that player failing to win the dividends and falling in value which would either leave you stuck with the player or force you into instant selling. The downside to this, of course, can be that if the player does win, you will miss out on potential dividends and possibly a further rise, so it therefore depends on your appetite for risk.

Transfer Targets

Another nice way to diversify your portfolio with some potentially “low risk” players is through picking up potential transfer targets throughout the season. Getting on these players early can be rewarding as others follow in your footsteps throughout the season. One of the best ways to search for these players is often looking for stars at lesser known clubs who are getting a lot of attention, a good recent example of this is Leon Bailey at Bayer Leverkusen. Other things to search for are those who are nearing the end of their contract or have a release clause that looks tempting based on their current form. If these players draw enough attention to pull in some media dividends as transfer windows approach, they can often see some sizeable rises. The hold becomes much riskier, however when the transfer season actually starts. Often a saga will include many ups and downs based on whether the player will stay or go and what is being reported on that day, so be sure to pay closer attention as the story comes closer to a conclusion.

It is also common to see these players dip in value after the saga, even if the big move goes ahead. This is because the media dividends tend to dry up after the deal is done and many like to move their money on to the next big story. This Mahrez price graph shows how he increased in price during the January 2018 transfer window due to transfer speculation, before rising gradually as the summer window approached. He then fell as it became clear that his transfer was near to completion.

Buying youth

This final trend is something that divides many opinions on Football Index. The idea of buying “the next big thing” does not sound too strange but it is the price that some of these young stars rise to that is sometimes confusing. This high price can convince you that the price has peaked but it often goes the other way and continues to rise.

The problem stems from the fact that it is hard to know when these players have peaked or where they will stop rising because there is nothing to judge many of them on. Many cannot even make it into their side nor can they compete for dividends. This often causes people to just “hold for the future” meaning that the players don’t see much volatility or fall. However, the problem arises when selling begins – many may begin to panic (as there is no dividend potential to fall back on) and a mass sell-off could start.

The trend is normally dependent on the most expensive young players, for instance when players such as Jadon Sancho and Reiss Nelson rise, others often follow, as you can see from their price graph.

Buying through association

This is quite a broad trend, but it will give you a good indication of the way many people on Football Index think about certain situations. Common associations are:

  • Buying players that have many of the same characteristics as a higher-priced player. For example, Saul of Atlético Madrid saw a significant rise which meant many began to buy his midfield partner Koke, who often posts similar scores.
  • When a big player picks up an injury, it is common for many people to quickly jump on his replacement who is then expected to get more game-time. For example, when it was announced Kevin De Bruyne would be out for three months, Mahrez, Bernardo Silva, David Silva and even Gündoğan all saw rises immediately with the chance of more minutes.

Overall, there are lots of different reasons and motives people have for buying players, but these are the most common explanations. Football Index is always changing, and new trends often crop up, so it is important to keep an eye out on what is making the market move.

 

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