My way of Dealing with this volatile market
TradingJournal last edited by
Been thinking about the decreased confidence in the football index market a lot lately and thought i would share my way of dealing with it.
When most of us join football index If we were smart we put in a small amount of money and trade small
The Majority of us had know idea what really made the prices move, let alone how to make a profit on a consistent basis, so we started trading small making our mistakes with very little risk so it did not matter as much if we lost money while learning
Once we started making progress we started gaining confidence and with that confidence we deposit more money and start trading with higher risk, we carry on making money start to love the platform deposit a lot of money and trade at our peak risk %
Now here is why the issues start to come when there is volatile market behaviour. Because we have been used to making a lot of money with a certain strategy at a certain risk % when our confidence was sky high, our mindset becomes fixed.
In a volatile market when there is a confidence drop What we should consider doing is going back to the basics that we used when we first joined. its the same scenario, we are not sure about the price moves and we are not sure about making profit
We need to learn again why the price is moving, we need to learn again how to make profit. so why not trade small and lower our risk so while learning again we are not losing as much money so it does not hurt as much! just like when we started
So when you buy another player and your confidence is low or the market is volatile why not open the trade with a reduced amount of risk until you have gained your confidence back
If u have a high % of risk in long term holds but like i was are haemorrhaging £100 a day why not scale down? commission you say? Spread you say? well If i would have acted 1 week ago and paid the commission and spread rather than waiting i would be better off! I no i am not the only one in this position
Yes football index as a platform need to make improvements. But where our money is concerned its out responsibility and we need to change our behaviour to suit the football index market not the other way round.
Going back to basics, de-risking, learning the market is working for me, im gaining confidence again and even making a bit of money doing it. Best of luck traders
Lukeroro last edited by
What you say is on point. Blatantly clear.
What you're missing is the minor inevitability the goalposts get moved again.
Ollie last edited by
@TradingJournal Good post. One of my principles too. If you can't win small, you can't win big. G&A is not my interest, but it has affected my mainly defender PF. As they've all gone down a couple of %, bar a few, I would like to believe that FI will correct the imbalance either by scrapping G&A, or introducing some sort of boost for defenders. So I am keeping them. If a solitary player goes down big time in price, then a steward's enquiry to find a reason why, as to whether to sell or do nothing. I like to look back at a players overall price graph to see where they started from, or the last year which is all we've got atm..
I think one of the lessons to come out of the last few months is that you need a diverse portfolio. Probably no different to what an actual ‘real’ stock market trader would say.
dannypea last edited by
I would argue that not much has changed in market volatility.... BUT the prices of players have increased leading to bigger drops and more panic when anything negative does happen?
Take the international break... Always tends to have a slowdown for the obvious reason there is less matches during that period?
Take the Jan window... Always seems to peak with traders excited by movement along with a heavily congested fixture programme?
Take March & April and the bouyed Champions League treble PB campaigns exciting traders to invest in Europe's top club players...
Then the mass drop off for May/June and a summer of no football (unless there's a significant tournament that re-invigorates interest)...?
Then it's Aug and the summer window, optimism... leading us into the season where we predict our PB holds and then a little flat again until that transfer window re-opens... And repeat!!!
I think if we know how to 'play' the markets we become less surprised when prices increase or drop... This week for me has been a great week to invest whilst players are dropping.... Not particularly great for selling... But then that's what January is for when prices sky rocket due to transfer activity!!!
When things are not going great in the market what I do is sell up some of that player, and maybe another and then there not taking such a hit still keep hold of them but you've de risked and them, with the money you've now got for selling invest in a better option can help stop the rot fast
@dannypea totally agree that this is a great time to buy in the big drop offs. Im pretty confident there will be huge drops in my bundesliga players around the 21st december when they have their winter break. Top up time once again. Or at least thats how i envision it!
@Finlay77 I will keep hold of Brandt and Pulisic during this time in case they increase onstead because of Transfer speculation.
@TradingJournal That would have been so much better reading if you knew the difference between KNOW and NO 🙈
@TradingJournal I won't return to trading small because if I did then when there is a share split announcement and a dividend increase, or a player I held shoots up then I will kick myself for not having all my money in. Even though I am 4% down since October 16th I think things will improve and that within a few months there will be an announcement we shall all like.
Londoner last edited by
I've been less than 3 months on this Index & now I think I understand it. I've swapped my investment in the real Stockmarket (Unit Trust) for the FI as I believe I'll get a much better return. I hope I can consistently make enough profit to pay my bills without having to return to secular work. I achieved it once after my 3rd week here. You can read my story if you're interested on Trustpilot here: 6th one down (Londoner): https://uk.trustpilot.com
I almost left FI last month after losing £850 in the market freefall. I pulled all my money out except for £2k. I spent a few days practicing a strategy to see if I can make money with that much smaller amount. I was able to make about £30, so that restored my confidence to stay. I was tempted to restore my original investment after FI launched the 10% deposit bonus recently. I got back my £850 & more when I received a £1k bonus. So I'm back with my original investment.
The bottom line is: Be as patient & don't panic as you would if investing in real Stockmarket shares. I'm about £200 from breaking even and slowly growing from this new strategy & I'm confident I'll be in profit once the market returns to growth.
@Londoner I have £21.5k in this but am jobless. I seem to return an average of £1.5k a month however which is more than my job paid me. I'm hoping for a share split or dividends increase soon as that would make things a lot comfier for me.
Matt FI last edited by
@HappyLarry59855 So £18k a year from £21k...That is an 85% return...you must be very happy with that? I am more like 50% (larger balances)
Are you able to withdraw £1.5k a month or does it need to be reinvested?
Have you still been making this much in the last 1-3 months?
@Matt-FI I withdraw £900 a month as that covers living costs. £600 stays in and adds to it.
The past 3 months I have made just over £3k. Goal and Assists dividends made me lose out by around £1.5k though, including commission and instant sell losses as I sold up defenders and non scoring midfielders. Otherwise it would be £4.5k.
I'll be happier when the share split happens and the dividends increase soon after. I will admit however I am very lucky to have discovered this platform and it makes life easier currently. I am hoping to climb up-to around £100k in the long run as then I can go on to buy property and create myself a passive income so that I don't have to rely on work.
Matt FI last edited by
@HappyLarry59855 Sounds like a good setup. How much time to you spend on football / index related matters per day?
I have a big portfolio but rarely touch it. This was working fine but in the last 3 months (ever since the dip after the 2nd deposit bonus) it has been fairly stagnant (dividends still strong)
Most of your gains must be from capital appreciation...what is your main strategy for this?
What are your hopes for G&A going forwards?
@Matt-FI I am obsessed with the platform. It is everything in my head haha. I read everybody's comments in the forum every day and look at my portfolio 5 times a day to see how it's grown.
I have 20+ players in my portfolio. I also have had stunted growth because of the deposits and goal and assists dividends changing things. I feel they must be offering these 10% bonuses to create liquidity and people putting more money into the platform. This suggests that if they didn't then the platform would start to stand still more, at least to me. This is why I think a share split is due and then a dividends increase.
Most of my gains have been through capital appreciation and through buying younger players who are already proving themselves. For example Brandt, Sarr, Ruiz, Mbappe and so on. I think they will get transfer links and have good PB.
My hopes for Goal and Assists going forward are that they stay however I think goals should be 3p and assists 1p. I would love it if they took away the 1 month rule and made it like the MB and PB length of 3 years onstead but that is me living in a dream world, and is unlikely to ever happen.
How on earth are you returning this sort of money ? Is this just through dividends or are you selling your player profits each month ? I have £15000 portfolio and are no where near those gains
@NewUser145896 Capital Appreciation. MB players are too high now except Pogba and Mbappe in my opinion. As for how on earth am I returning this much money? On average a player doubles in value each year. So I would say £1500 is about right. If you are earning less than the average increase of a player over a year then that to me means you should change strategy. I feel there are people who are making even more than me.
Diaclaimer this is not intended as a personal insult. 18k of 20k on the index... Sorry but I'm not convinced based of your various statements it doesn't add up. If you REALLY are returning that CONSISTENTLY from that amount then hats off and fantastic trading you must have the holy grail strategy that everybody is looking for care to share?(please don't say capital appreciation). You have been on the platform a year? Out of those 12 months how many have you returned the claimed amount ?
My issue is more to do with the fact that you could be setting unrealistic expectations for new impressionable users.
I feel to trade football index full time alot more than 20k would need to be invested and the platform still needs alot of work before its ready for that. The process of selling needs massively overhauling.
Personally I see the index purely as diversification from my other investments as imo it's far from ready to commit 100% to in its current form.
@M.s.b It's not unrealistic. Why don't you look at a graph of a player and then see the fact they have doubled on average? I don't care if you're not convinced. It's just reality from this platform growing. It is the average. 8 months ago Pogba, Hazard etc were half the price.