I have put together a brief post on maximising ROI on the Football Index Please take from it what you want...
1) A minimum of 40% of my balance has always remained on what I label as classical PB and MB players, having a consistent stream of dividends through PB and MB boosts cash flow and enables reinvesting back into the market.
2) My profit of £46k can be split into £6.4k dividends and circa £40k capital appreciation, this is not surprising in a growing platform.
3) Age is a hugely important factor on FI assets and the article here medium.com/@Taking_Value/… does a fairly good job of demonstrating that. Factoring in depreciation is an important factor, it makes no sense to move from £6 to NIL value once you retire.
4) There are clear seasonal trends which you need have awareness of. For example, potential summer transfers, players eligible for European KO stages, PB players without a MB profile (as we close the season down). Learn the trends and buy accordingly.
5) Ignore the price you bought an asset for. I have heard some traders discuss that they do not want to top up on a player because this will ruin their average purchase price. This is terrible information, FOCUS on the current price and make your assessment on that price.
6) Sitting on a player who has risen enough to demonstrate a 1000% growth looks awfully pretty. If the sole reason you did not top up was to keep the 1000%, terrible decision making.
7) Young guns – the market indicators all point towards the trend of young players continuing and there is no reason not to have an allocation in your portfolio to take advantage of these rises. High risk yes, but huge rewards on offer.
8) In 2018/19, ignoring youth would have led to missed opportunities on Moises Kean, Sancho, Hudson-Odoi, Rashford and Dembele. The reality is, these rises all outstripped the best PB returns.
9) Having a clear exit plan on your trades and assess these frequently. I cancelled a sales order on Ramos because I got greedy and lost a huge amount as a red card and Champions league ban followed.
10) Finally, listen to the @FiGuide podcasts and use @footballindexed (football index edge) for data to broaden your knowledge.
Football Index Panda 🐼