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Weekly Tips to Help You Profit With Football Index

Short Term vs Long Term Strategy Explained (and Neymar £15+!!)

Following his hat trick against Red Star Belgrade in Champions league on Wednesday, Neymar (£15.06) has become the first player ever on Football Index to go over the £15 mark

This is a testament to the growth of the platform, which is still at an early development stage when you consider how big the market actually is. In fact, as more people join the platform and existing traders keep investing more, prices are bound to keep going up (and we are far from the saturation phase!). Neymar’s share price is a good example; it has increased by over £9 in the last year, and has been consistently growing from one month to the next during that time.
 
One thing to remember if you are buying expensive players like Neymar, they are an amazing long term investment as they generate dividends very frequently, however you will need to ignore price fluctuations and keep in mind that the accumulation of dividends will provide a profit in the long run. The reason for this long term strategy is that the spread (i.e. the difference between the buy and the sell prices) depends on the price of each player. So typically you will see a large spread for expensive players and low spread for cheap players (for example Matteo Guendouzi (£2.09) has a spread of £0.06, whereas Neymar (£15.06) has a spread of £0.60 (10 times more!). This prevents traders from making a short term profit on expensive players, and therefore actually protects your long term position. On the other hand, when it comes to less expensive players, I would advise to opt for a short term strategy, as the market for these players is more volatile due to a low spread.
 
To summarise, here are the 3 Football Index strategies you need to understand:
  • Expensive players (high spread): long term strategy (prioritise dividends).
  • Cheap players (low spread): short term strategy (prioritise price increase).
  • Mid-range price players (average spread): you have more flexibility to switch strategy along the way.

So when buying players, make sure your strategy is clear, it will make all the difference!

Start Trading at Football Index

Football Index is the trading platform that you will use to buy and sell football players. Football Index allows you to invest in individual players, earn dividends, trade players and sell at a profit based on their real life form.