Just in case you didn't know, the name of the game is to buy low and sell high or short high and cover low. But that doesn't answer the bigger question: How do you know what to buy? Below are some tips on how to profit in the market.
1. Market Ratings
PROTRADE Market Ratings reflect our analysts' predictions of the total fantasy earnings an athlete or team will produce through the end of the post-season, or Earnings Day. We compare these predictions with the current market price to identify stocks that seem over or undervalued.
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2. Predict a Price
How many wins do you think a team will achieve? Enter your predictions and click the "Predict a Price" button. Compare your predicted price to the team's total earnings to date and their current price. If you predict a price that's higher than the current price, buy them. If the price you predicted is lower, consider shorting the team.
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3. Check the calendar
In the beginning of a sport's season, stock prices are more volatile (they have the whole season to prove their worth). The popular players tend to be over-valued and are good shorting opportunities, while the up and coming players tend to be under-valued and are good buying opportunities. As the season progresses, prices move closer to actual earnings (but don't worry - there are always ways to make more $$).
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4. Capitalize on injuries and changes in player status.
It hurts us to point it out, but that's the market. Short players that get injured and buy the players that replace them in the game. Watch the games and subscribe to an RSS feed with breaking news for the latest information. Note: this is generally a strategy for short-term traders.
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5. Take advantage of market inefficiencies.
As a player's season comes to an end, their earnings will be known. The market may take some time to react to the news and their price may not reflect their earnings. Buy (if actual earnings are greater than their price) or short (if their price is greater than their actual earnings). When their price is tied to performance on Earnings Day, you'll be sitting pretty in the green.
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