Page 17 - Buildingastrategy

BUILDING A STRATEGY PART 7

LONG TERM PRICE APPRECIATION

CONTINUED

Manager & Team mates reactions
Was there any comments from the manager that strengthens the likely hood of

him being part of the managers plans, has there been any comments from team
mates about him?

Jose never once said that Zlatan united career was over, only that if he can get fit
he could potentially be an important part of the future.

Entry Point
Record as much information as you can to support your trade but equally record
all potential negative's so you get a clear picture on risk verses reward. If the
information is more in favour then enter the trade.

Zlatan re-signing with Manchester united according to the press was very likely to

happen. Both player and manager were vocal that they wanted to continue if it
was possible an agreement could be made. Before his injury Zlatan was the best
media player on football index. There was always the chance he would not
sign and Zlatan would fall in price but the support for him re-signing was stronger
so I entered the trade at £2.29.

Exit Point
Ideally your exit point should strictly be what you outlined in your strategy brief,
so get out when you have either met your profit target or stop loss. However
holding for long term means that a lot can change from when you entered the
trade originally. If it becomes clear that your original profit target is either
unrealistic or not high enough and/or your stop loss should be higher or lower
then be fluid and let the market guide you, just make sure that you have plenty of

information to support the change in plan.

My plan was to exit the trade pre-match the day of his return. I planned to exit
pre-match because I did not want to risk a poor performance which could effect
his price. My speculated price was around £4.50 but the morning of his return he
reached £4.85 which was high enough for me to exit. Demand was still high so

I sold to market.