Page 16 - Buildingastrategy
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BUILDING A STRATEGY PART 7
LONG TERM PRICE APPRECIATION
Entering into a long-term trade is a commitment to patience and
perseverance, we tell ourself a story, we make a prediction and we
commit fully to sticking to it. If you want to get the kind of price swings
that make having money tied up in a player worth it then a long term
investment should be at least three months.
There are many reasons for holding a player long term for that big price swing.
Could be an talented young player just breaking through?
A player in the last year of his contract looking to leave?
Maybe a player who hits rock bottom price because of a big injury?
I am going to use my purchase of 100 Zlatan Ibrahimovic shares who was out
for six months with Injury.
Questions I ask myself when looking to hold a player long term are.
Strategy brief
Core reason behind you holding the player and what do you hope to achieve?
Speculate on what price you would like to exit if the trade goes in your favour
and if the trade goes against you. This may seem a bit on the nose but its
necessary when trying to stay disciplined and stick to your plan.
I took a chance on purchasing and holding Zlatan because of a potential big
price swing if he returns to the Manchester united team. At the time of purchase
this was still unconfirmed.
Media News
What has the media been saying about the player is it positive or negative?
anything that may support your prediction or not and ultimately reviewing this
information will help you make the decision to enter in to the trade. Please note
sometimes you need to speculate and make a prediction when holding a player
long term so you might have no media support yet.
Zlatan himself was doing a lot of talking in the media saying he will get over this
injury in no time and will speak to Jose Mourinho about his future. Online Media
of him training through his recovery was consistent on all social media platforms