Liam M Case Study: “Master the basics and it’s pretty simple”
Give us some insight into your background and education?
I completed my A-Levels in 2015, coming out with A*AA in Biology, Mathematics and Business and after taking a two-year gap I’m now a first-year student at Uni of Leeds studying accounting and finance.
Do you have any background knowledge in trading?
When I originally started trading on the Index I had no trading background but was interested in the subject, I now spread bet and trade options quite frequently and am also preparing to dip my hand in the cryptocurrency and long-term equities markets after joining the relevant societies at University.
What do you think makes a successful trader?
I am definitely one for data analysis, and the longer the index continues to exist, the more history there is to look back at in terms of player dividends and what causes growth or decline. I also think it’s important to be able to separate your emotion from trades, FOMO and greed can always result in buying high and panic or fear often ends in you selling low. Once you can take that out of your trading, you have a lot more chance of higher returns.
Have you made a profit? … what kind of return do you anticipate from trading?
My current profit is around £13,000, I will always regret only investing a couple of hundreds of pounds during my first year on the index which ended with me returning around £1,000 profit in the first year. Since then I average that return monthly. The maximum of my own capital I ever had invested at one time was £5,000, and i always made sure my account showed 100% ROI to ensure if a catastrophe did occur, it would be unlikely my own funds would ever be touched. So I’ve always been quite cautious with my investments but still seen great returns.
Are you employed currently? What do you do for a job?
I now work just part-time at a Limited Company in their accounts department under a Head of Finance, I had previously worked full time for them for over a year before starting my degree.
How do you see this as different from regular gambling?
Regular gambling is usually binary so you win or you lose, usually within a couple of hours of staking your money. Whereas on the Index your investment is made and it is there for as long as you want it to be. You don’t win or lose until you close the trade. Plus there’s more than one way to win because realistically it’s based on peoples opinion, and people choose to invest in a player for different reasons, reasons you may not have bought for but can still profit from.
Is it more intellectually satisfying than regular betting, if so why?
Definitely, when you sit and analyse a potential trade, looking at what their price has done previously, digging out PB stats and Media buzz wins and then decide to buy and turn out to be correct, you get a similar buzz as the one you get on the real stock market. The feeling that you’re research and instinct was correct is very intellectually satisfying.
Have you found it easy to pick up?
When I started the index there wasn’t as much going on with it as there is now so I think it was a lot easier to pick up, however, once you’ve got the basics down it’s pretty simple. That being said, no matter how long I’ve been on the index, some prices I will never understand! But that goes back to peoples different opinions and is part of the beauty of the whole thing, but the longer you trade, the more things you experience, the more you can pre-empt price movements and capitalise on them but there’s always surprises.
Do you have a strategy and if so what is it briefly?
Strategy changes quite a lot recently, especially with all the changes to the platform. I have a few big holds that I will continue to keep until something drastic changes, the likes of Messi, Sanchez, Kane etc who are clearly more likely to win PB or MB in some way. Other than that a lot of my trades are based off future fixtures or events coming up with my portfolio being quite fluid until I see the effect of the introduction of all the squad players being purchasable. Also got my eye on a couple of them too, so there’s clearly plenty of ways to trade and profit all at the same time. The main strategy is to have a solid reason for buying, keeping emotion out of it and avoiding FOMO!
How do you find the platform? Do you enjoy using it?
I enjoy using the platform, the combination of using football knowledge and trading techniques to make money is great, definitely nothing out there I’ve found like it, in terms of how it works and in terms of returns you can make.
Do you think Football INDEX will be successful in the future? How do you see the market evolving?
Definitely. Once Squad players are all introduced and performance dividends are doubled, hopefully, there will be a nice steady period without any more major changes to allow investors to settle and for a period of organic growth to take place as the advertising campaign continues.