You'll notice a few trends within the ISFL stock markets, the two main take aways I have seen so far are:
1) People tend to buy the cheapest stocks
2) People tend to not buy the most expensive stocks
There are good reasons as to why people take these approaches, a risk averse person would generally assume that the highest stocks have nowhere to go but down, and those with the lowest value can only get better. At the five week mark we can note that at least one of these theories holds absolutely no water, as those who have purchased Chicago Butchers stock can attest to with only a 0.17% increase from their starting value.
So far it seems as though the better approach for the risk averse investor would be to purchase stocks of a strong team coming off losing some away games, or underperforming over the short term and then selling upon the teams eventual rebound. The risk with purchasing stock in a cheap, yet unproven team is that there is no record of success to fall back on and this no guarantee that the turnaround will eventuate - on the other hand a team who is generally competitive but had a tough run is nearly assured to rebound from this. Those wise investors who purchased shares in the Orange County Otters after their 0-3 start to the season have been amply rewarded with a return of over 17% in the two weeks following.
Seemingly the best and somewhat safest approach would be to buy and sell the same team within two to three weeks rather than holding out hope for a blue chip investment.
1) People tend to buy the cheapest stocks
2) People tend to not buy the most expensive stocks
There are good reasons as to why people take these approaches, a risk averse person would generally assume that the highest stocks have nowhere to go but down, and those with the lowest value can only get better. At the five week mark we can note that at least one of these theories holds absolutely no water, as those who have purchased Chicago Butchers stock can attest to with only a 0.17% increase from their starting value.
So far it seems as though the better approach for the risk averse investor would be to purchase stocks of a strong team coming off losing some away games, or underperforming over the short term and then selling upon the teams eventual rebound. The risk with purchasing stock in a cheap, yet unproven team is that there is no record of success to fall back on and this no guarantee that the turnaround will eventuate - on the other hand a team who is generally competitive but had a tough run is nearly assured to rebound from this. Those wise investors who purchased shares in the Orange County Otters after their 0-3 start to the season have been amply rewarded with a return of over 17% in the two weeks following.
Seemingly the best and somewhat safest approach would be to buy and sell the same team within two to three weeks rather than holding out hope for a blue chip investment.