New traders are warmly welcomed to FI! More traders in the market means more money in the market. With more money comes growth. It's undoubtedly the new traders that keep the index moving forward, particularly in current times where the older investments are 'locked up' during this covid-crash-matching-engine-summer-transition.
In short, we love new traders. They keep the wheels turning, and free up money through increasing the trading activity. For that reason, we love new traders - particularly those willing to learn the ropes with enthusiasm!
However, there are a few telltale signs - AKA Pet Hates - that a trader is new, or lazy, or perhaps simply less experienced. We see them both through their trading activity and social media presence.
1. Ignorance to the Rules
The odd question clarifying rules are always welcomed, particularly when the index is changing as quickly as it has done over the course of this summer. There is a lot to learn at first; masses of vocabulary, rules and trends that don't make sense at first. Clarification and guidance is what the FI community should be all about - and here at Football Index Gurus we welcome anyone to get in touch with queries.
But if you've read the rules, you'd know 90% of the answers to the questions that new traders ask.
That's not to sound patronising or arrogant. It's just honest advice - if you're a new trader, laying down bets when you've not read the rules yet, you're almost destined to lose profits and likely make a loss. Read them, then read them again. If it's still not clear, pop a question out there. The community is happy to help, but asking a blatantly obvious question that can be answered within 10 seconds on the FI website is often met with a disgruntled bunch of traders.
Turning to social media and seeing individuals buying Cavani 'in hope of MLS move' or slapping their pay check on an FA Cup final for in-play dividends brings a smirk to the face of somebody that understands the concept of PB Eligibility. Don't be that guy getting it all wrong.
Here's a link to FI academy. Even as an experienced trader, checking in on FI Academy is vital to stay up to date with the changes in dividend structure and the news that the platform releases.
2. Oblivious to Pumping
'Pumping', 'pump and dump', 'trash cash'. It goes by many names. There was once a strategy on the index that saw pretty average players suddenly heavily invested in to get them in the trending list, or spammed on social media to try and cause a little hype so other traders would also get onboard. Then the original investor(s) would instant sell at a profit and cause the share value to crash back down again, leaving the new traders holding an average player at a loss.
New traders are perhaps not so aware of this in the 'modern' index. It's become increasingly difficult to pump and dump since Matching Engine's introduction, and will likely be even harder when complete order books are introduced. Nonetheless, there are still tipsters out there who slip in a bad player with little or no attraction. Of course, some tipsters have fantastic data or sources to justify their 'pump'. Sometimes hype is genuine. But other times, tipsters cast a line and shoutout a pretty dead-end player. They occasionally catch a new trader and find a way to offload their shares to the less experienced trader.
Be aware of falling for this. Take advice, but make sure you follow data over social media hype - be it stats, or PB/MB, or viable sources of media. Don't trust every tipster.
Equally, don't be the new trader that made a bad-buy and try pumping it elsewhere. Plenty of new traders see this as a smart get out of jail card to raise market value, but to an old trader it's the oldest trick in the book and you'll likely get your arm bitten off, respectfully.
3. 'Who's good then?'
Ahh. This is a very strange one. Football Index offers traders the ability to profit from their football knowledge. You can of course profit from others that openly share their research too, but you'd still be trusting them with your money.
The market moves with shared knowledge and trends. The high end of the market is justified for a reason. It didn't get that way by chance. Sancho is that expensive for a reason, and many traders will have calculated to some extent why he's that expensive. A 30 something year old, £0.40 player in a bang average side is that cheap for a reason - with very few exceptions.
You don't need to ask 'who's good' if you're just going to sheep the traders that respond. Why not simply purchase the high end players within the Top 50 given that's where most money is invested. They're good investments, according to the many thousand traders that hold.
The issue with asking 'who's good then?' is that you'll get a response rate almost entirely biased to individuals' own portfolios. If you're not going to do the research, why trust Generic George on Twitter over the market itself?
If you're not willing to do your own research, that's no biggie. New traders can't learn the ins and outs of FI in a day, and there are tonnes of accounts and individuals that share their research. But if you desperately want to get involved and put money down, why not trust the market itself over friends or tipsters?
You can purchase trackers, which historically have been profitable year on year. Or perhaps even just onboard a handful of the top end of the market and trust that market knows their stuff.
Alternatively, you can do your own research and refrain from asking 'who's good then?'. You'll profit from your own knowledge.
The final option is rewording your question. Perhaps you're looking for a certain position or age. Perhaps you have a budget for these shares. Perhaps you want opinions on short-term trades rather than a three year hold? Or maybe you want proven PB winners? Maybe even you have a couple of players already in mind and want opinions on comparisons.
Asking for advice is highly recommended if you have specifics, but wasteful if generic. If you don't intend on researching or being proactive, then back the market with your money over the individual accounts.
If you switch on and pay attention to these three points, you'll almost certainly start to trade smarter, even if you're not yet familiar with Football Index. You'll also receive warmer responses in trader groups and communities!
As always, feel free to drop us a message if you've got any queries!