Trade stocks based on sports knowledge
Sports and actions, these are two of my favorite things. Every night when I get home, two channels attract me; CNBC and SportsCenter. So I decided to start tracking how sports affect stocks and the correlation between the two. Let’s take a look at how your common or expert knowledge of sports can lead you to win some money without the risk of sports betting. Remember this won’t make you rich, just a fun way to trade and a little extra cash.
For those of you who are new to stocks, here are 3 things to know:
1. Growth is king on Wall Street
The fastest growing businesses will make the most money for you.
Example: Nike (NKE) – The largest sportswear manufacturer in the world stock price has risen 8.84% to date. Under Armor (UA) shares have risen 15.64% to date. The reason Under Armor surpassed Nike is simply that they are growing faster.
two. No emotions, just facts
Never trade with your heart, it will only break along with your wallet.
3. You only lose money or make money when you sell
You only profit or lose when you sell your position in a nutshell. If the stock goes up and you make some money, sell the stock and wait for another trend that can rebound.
Now that we understand the basics, let’s look at some of the recent correlations that I have found.
Today we cover Under Armor (UA) and Stephen Curry (Basketball). On May 3 of this year it became widely known that Stephen Curry would be named NBA Most Valuable Player. Those of us who follow the NBA knew that this would probably be the case at the end of the season. So if you had bought Under Armor (UA) shares on Monday May 4, 2015, the day the market reopened, you would have bought Under Armor at the price of 77.11. If you then sold the shares on May 6, you would have sold them at 79.08, which equates to a gain of more than 2.5% in 2 days. Let’s take another look at another event that brought this same stock up. The Golden State Warriors and Stephen Curry won their series over the Memphis Grizzlies on the night of May 15, who according to NBA statistics had a 92% chance of winning this series. The stock opened Monday, May 18, at $ 77.84 and has traded as high as $ 78.60 since the event took place. This trade could have done a little less than 1% on your portfolio in just one day.
This gain may seem insignificant to some, but for those who are familiar with stocks, this is a staggering gain in a short period of time. The added benefit is that it is directly related to something that most of us already have a lot of information about. So if you love sports and you love stocks, the next time you look at it and see a trend, trade it. You will have fun and earn some money at the same time.