A Guide to the Football Stock Market
Buy low, sell high!
The idea is to buy ‘futures’, e.g. the future value of the player, in the hope that his value will rise in the coming days and weeks.
Let’s take an example of Luis Suarez. He’s available for £2.00, and you note that Barcelona have an easy fixture coming up. Here’s the mindset: Suarez bags a hat-trick, his price increases and you can sell in order to lock in a profit, or instead hang on to the Uruguayan in the hope that his value continues to increase in the future.
You can buy as many futures as you like, which – like the real stock market – means that your profits can increase exponentially with each passing gameweek.
How is a player’s share price determined?
Football is a multi-faceted sport, and in the modern ago of instant news, social media and ‘citizen journalism’ there are plenty of ways for players to get noticed both on and off the pitch.
There is a synergy between the two with Football Index: quality performances on the field are likely to increase trading activity in the individual, while negative press off the pitch can see their share price plummeting.
It is like playing the stock market, but with the beautiful game as our guide.
There are three main ways in which a player’s futures price rises/falls:
This is the meat-and-potatoes of Football Index. Doing the business on the pitch will see an increase in popularity and share price, and force them up the Buzz Chart too. This causes price fluctuations accordingly.
As with any index of this nature, the activity of buyers/sellers will ultimately determine share price. If a stack of shares in a player are sold the price will fall and vice versa – this is the classic law of supply and demand.
News and Gossip
The famous ‘insider knowledge’ can help to cause a shift in futures price. Is a player set for a big money move? Their injury better/worse than first feared? An off-field scandal set to be made public? Anything that can somehow alter the perception of a player – for better or worse – will cause their share price to fluctuate.
Like the good old days of the Top 40 Singles Chart (do they still do that anymore?), Football Index has devised their own Buzz Chart to offer up current player rankings based on their recent performances and popularity.
Should your player hit number 1 in the rankings, a fixed dividend is paid out for each future you hold in that particular star.
The official determination of the Buzz Chart comes from players in the news. It could be a transfer rumour, a controversial interview, a quality performance the day before….whatever it has taken to get them on the back pages of the football press. Football Index have aggregated 25 football news feeds – and here’s the key, they are UK based – to determine the performance, or otherwise, of players in the chart.
How to get started with Football Index
First things first, you need to sign up, so point your browser to Football Index and let’s get started.
Once you have registered (and remember, making a deposit is optional at this stage), you will immediately be greeted with the ‘Market’ screen, which enables you to purchase futures in the 200 hottest players in the world right now: To buy your first player, simply click the blue Buy button, specify how many futures in the player you want and finalise the deal. So, for 10 shares in Wayne Rooney as listed above we would have to fork out a total of £21.00.
Congratulations, you’ve just purchased your first player on Football Index! Remember, all trades happen instantly and there are no sell queues, so all transactions are carried out with the minimum of fuss.
The other tabs on this page are Squad, which lists the next set of players who are vying to make their way into the ‘1st Team’, and you can use your voting privileges here to push your favourite players up this list.
The Buzz tab relates to the Buzz Chart as described above.
You can also check the status of your purchased futures in the Portfolio tab, and use the Trending table on the right-hand side to help determine who might be worth purchasing based on their moves in the market.
The latest User Activity is also displayed in this column.
Football Index Trading Strategies
As with all new things, it is perhaps best to dip your toe in the water of Football Index before diving in head first with significant investment.
There are a few strategies you can employ that could make your first foray into football trading a success; enabling you to steadily increase the volume and size of investments you make.
Buy Low, Sell High
The aim of good trading is to identify shares that are ‘undervalued’ in the likelihood that a certain set of circumstances unfold.
Here’s an example: Manchester United are playing West Ham, who have the worst defensive record in the Premier League at the time of writing. You snap up futures in United striker Zlatan Ibrahimovic, he duly nets a hat-trick, says something completely daft and egomaniacal after the game and lo and behold: his price surges upwards as a result.
You can then sell at the higher price safe in the knowledge that could well be Zlatan’s seasonal zenith.
If you decide to deposit a tenner in your account, then it is perhaps unwise to spend it all on shares in a single player. What happens if they suffer a serious injury? Lose form? Allegations of an extra marital affair surface? Here their futures price will plummet, and you will be left with a decision to sell at a loss or hope against hope that their value one day returns to a higher level.
Instead, purchase futures in a small army of players, and look to accumulate steady profits over a longer period of time.
Do Your Homework
Pre-empting price shifts is the key to good trading, so make sure you know the fixture lists of European football’s top leagues like the back of your hand.
International break coming up? Think about who may star and who certainly won’t. Think about who has an easy run of fixtures, and who has the opposite. Scoring a goal against Bournemouth might not garner much of a price change, but netting the winner at Manchester City just might.
A slightly xenophobic point, but one worth knowing regardless: the Buzz Chart, and other aspects of Football Index pricing, are based on UK news feeds, not worldwide.
So, somebody scoring a hat-trick in La Liga or the Bundesliga won’t be so widely reported in the UK as it would in Spain or Germany. Whereas even a seemingly minor act from a British player is likely to cause a market fluctuation.
At the time of writing eight of the top ten players in the Hot 200 ply their trade in the English Premier League; this is a handy angle in.
Why you should sign up for Football Index today
Some football fans just have that wonderful knack for predicting future outcomes in the game. Whether it’s a hat-trick in a big match. Huge money transfer or a shocking fall from grace, we all like to think we know football inside and out.
What is so great about Football Index is that it enables us to prosper from such psychic abilities. Like the stock exchange, predicting when a player is about to ‘blow up’ (that’s youth speak for ‘enhance their reputation’, by the way) is when to buy your futures, and then selling them when the player is at the peak of their powers should ensure you lock in a tasty profit.
There is no glass ceiling here. You can buy as many shares in a player as you wish. So while their selling price may be just a matter of pounds and pence, the accumulative effect can be substantial in terms of money made.
The fund doesn’t stop at the final whistle, either. Market movements are happening all the time, so there is plenty to consider throughout the week. This is ‘betting’ with a difference!