Tips For Success In The World\’s First Sports Stock Market

The AllSportsMarket is a finance exchange employing a pro trading platform to purchase and sell issues of sports teams. It is similar to the stockmarket, but with sports groups! You vie with other players for real cash. Money is earned from the highs and lows of the costs of groups and from dividends paid when groups win. The AllSportsMarket is twenty-four hours, 365 days a year – you can trade at anytime and as frequently as you want.

You can fund an account for as little as $25 or try the \”no catch guest entry\” to check out the user interface. Unlike the stock market, where you need a hefty upfront amount to get started, and gambling where you can lose all your money at once, you can start off with a minuscule amount of money and not lose it all in one shot.

Buy Low and Sell High

Like the stock exchange, you earn money off the highs and lows of the fundamental security. In the case of the AllSportsMarket, the safety is the issue of the team. Purchasing shares with the aim of selling them later at a greater price to book a profit is known as long. In ASM, you make the difference minus the total commissions you pay.

This is the simplest way to make your gains, but it does take some timing and patience. The big question is what do you consider high low? A good thing to look at is the prices of the rest of the teams in the league. You should expect that the better teams will have higher prices, but there will be the occasional discrepancies for one reason or another. With that said, you have a range of prices and you should look to buy good teams that are in the low price range. Do as much research as possible to find out what teams are being undervalued.

Dividends

An alternate way to earn income ( and one of the keys to accomplishment in ASM ) is dividend pay-outs. Each game your team wins, the dividend pot grows. You are paid dividends based primarily on league specific pay outs and payout schedules.

The dividend technique is an approach to make gains from dividend pay outs. Here\’s where you purchase shares of a team especially to capture the dividend payout. There are numerous dividend payout schedules relying on the league you own stocks in. The teams that have higher dividend reserves pay higher dividends. Dividend reserves change from game-to-game relying on the leagues explicit rules of dividend transfers for the winner and loser of the game. In the dealing system they list the highest dividend reserves ( see the figure on the right ).

Dividends are great in the sense that they reward for choosing winning teams. For example, over the course of a long season, the Detroit Pistons will likely win more than they lose, and will therefore pay out a good amount of dividends.

You need to be careful when buying shares solely for dividends – the share price may go down leaving you with a net loss even after you capture the dividend.

Selling Short

You may also make cash selling short. This involves borrowing a share and selling it expecting the share to decline in price so that you can get it back at a lower cost. Selling short can be more dangerous due the fact you can lose more than what you put in since the price has an unlimited upside potential. When you long, the stock can only go down as low as $0.00 and you only lose as much as you put in. When you short you might lose what you put in and more.