In this post, it will be the start of the ‘know it all’ beginners guide about Football Index. This particular guide is a quick fix basics guide. The majority of points and information in this post will be deeply dived into in its own respective guide. But for now, here is an overview.
What is Football Index
Football index is a platform that allows traders to buy and sell “stocks” in football players. Does that mean you can own a share in an actual person? Well no. The shares are fictional, but the way the market works is like any other market. As football index put it themselves: “putting your football knowledge to use by seeing what its worth”.
The next question is always, always..
Well How do you Make money?
There are a few ways to make money on football index, your shares can earn whats known as capital appreciation. (Simply translates to the increase in value of an investment). For example if you buy Raheem Sterling for £3.50 and in a weeks time he is worth £4.00, you have earned CAP of 14%. Another way is dividends. These be paid out, in cash, by the platform various things. For example: media dividends; top ranking media featured players. match day dividends; top ranked players on a match day (example best forward, mid, defender and also theres a star player). And third there are in play dividends. These are paid out per goal/assist respective of the players position. See the table below for an illustration of these payments.
At this stage I think its extremely important to point that this platform is technically gambling. It is regulated by the gambling commission and buying shares is by theory a bet. Its important to keep in mind despite not being by any means like a traditional form of betting. As a result bets (i.e. shares) expire after 4 years this is to refrain from having to pay taxes on profits made. Looking at this as a gambling platform may out put a lot of individuals, in my opinion, its a positive; It means the platform is officially regulated and in general, all stock and share indexes are gambling in the first place so for me it was not matter for concern.
So with this in mind, if I pose the statement that loosely put, to get your head wrapped around the platform its like fantasy football, sports betting and the stock market all in one. Now to me, and an experienced user, you wouldn’t agree with that, but starting it out, its not bad to keep in mind. But as I say to nearly everyone, if you expect quick returns off small stakes like sports betting offers, this is not for you. This is a patience game in the long run. For me its a saving account. Its where I store my money to gain a better % increase on it rather than it would just sitting in a bank, knowing about football and being a huge football fan is a great bonus to aid that.
So explain exactly what is you do?
Well essentially, you buy players you think will either a. Increase in price (by other players buying the share, thats how it works, more money in the player, the higher the price) b. Return dividends, be it media or match day performances or ideally c. Both. As of writing the two most standout valuable players of the index are Neymar and Pogba respectfully. This is due to their crazy dividend returns through both media and dividends. One might see or hear about a great young player in the youth academy of their team etc. And want to invest in the player now when at a low price so in the future if he were to break on to the scene, and rise dramatically. This drives a lot of buys on the platform, people looking for the next big thing. There is no fee for purchasing but Football Index take 2% commission on all sales. This is fairly average amongst trading platforms and is not sore at all.
The key bit of advice for every share you buy in the index is that you must do your own research into each player and have your own genuine reason as to why you’re buying it. And before you even purchase, have a fairly good idea as to when you plan on selling. e.g. buying Declan rice in march because the end of the season is coming up and you think he will be in the media throughout the summer with transfer rumours, so you want to get on him early before others figure this out. You will be happy to sell once you’ve reached x% cap on him and y% return in dividends realistically.Its a long term game.
Yet another key bit of advice which should go with out saying is not to stake what you cant afford. If you woke up tomorrow and your entire investment was gone, would that have a dramatic impact on your life? If so, of course it’s too much. Its maybe smart to have a system of having like x£ going into it every week or month. Everyones portfolio stake is going to he different. Some people will manage a portfolio of £100, others £10,000 even £100,000. With this clear stake in mind you begin your research and build your portfolio carefully managing it and investing a smart stake into each hold. Its smart to spread it as much as possibly in regards to lower risk. It means that if one share collapses you don’t have all you eggs in one basket, which is another way to do it. High risk, high returns of course.
So as you can see on this screenshot of Harry Kanes share. You can see it currently costs £4.73 to purchase. In the past 24 hours he was down -0.02£ and in the past 7 days up 0.08£. You can also see a bit of data on the players information provided by Opta. Followed by a historical graph of the shares price, in this example the past 3 months. You can see a big dip around the end of march, this is of course due to his injury against man city in the champions league and an initial panic sell off but as you can see long term, the stock reached a much higher price than even before the injury when Kane was due back from injury for the final. Its all about buying and selling at the right smart times, harder than it sounds.
Now regarding selling you shares, it can get a be bit tricky for beginners. Of course as stated, this will have its own separate guide, but to summarise: there are 2 types of selling. Instant selling and market selling/adding to queue. Instant selling is where you sell instantly for the the sale price stated. This is always below buy price and the difference in buy and sell price is called the spread. The bigger the spread the worse. Market selling is where you add your shares to a queue for others to buy. You get your full value price for this as it is when you sell it , minus of course the 2% commission on ALL sales. Market selling is always the best and most profitable but sometimes instant selling can be necessary.
As seen in the example above, an instant sell of Harry Kane is 4.54, meaning a spread of 19p. This particular trader holds 30 shares of Harry Kane and is up 31% alone in capital appreciation not including dividends.
Do your own research! I swear by this platform as does I would guess the majority of its users. But I done weeks of research on it and tested it out with a small investment first of all before properly taking a stab at it. If you are unsure it might be worth taking a look at my write up tomorrow, ‘selling the index to you and your peers’. This will really speak loads and discuss the added incentive of referral codes, an extra and easy way of earning some bankroll.
The football indexs’ very own youtube channel and youtube tutorials are a great starting point as will to build a visual understanding. And I will link them at the end.
I hope this article achieved what it set out to, in making a brief, general, over looking guide to the Football Index platform. ANY other questions at all ask away, anything you think I missed also drop it below and above all, thank you for even reading this.
-The Football Index Investment Guide
https://youtu.be/bSlG6xvSJko FI very own tutorial video.
If you are completely new to Football Index and signing up for the first time. Get a FREE 10 POUND USING This code: 296493. You get a FREE 10 quid and so do we. Any questions, just ask.