There are many similarities between football team formation & investing portfolio strategies. Here are 8 sample strategies of football team formation. Common one is 4-4-2, some apply 4-3-3. Certain coach could work better with some selected players, so we must also find our key players of stocks.
We adopt a trading/investing strategy aligning to our unique personalities. We are the coach of our football team, besides the goalkeeper (cash or safe fund), we need to find 10 key players at different positions, eg (5-3-2) formation strategy:
5 Defenders: 50% stocks in dividend investing (REITs / Non-REITs)
3 Midfielders: 30% stocks in growth/value investing
2 Strikers/Forwarders: 20% stocks in crisis investing / short term momentum trading
(Don’t forget a few reserve players as we could have accidental injury or fatigue, standby giant stocks which could be considered in next round of selection)
By the way, if you are not a fan of football, you could think of basketball or any other team, similar strategies applied. This is to show that investment is as easy (or as tough?) as playing a ball game.
Align each player with 3 types of trading/investing strategies:
1) Buy Low Sell High
2) Buy Low Hold Long Term
3) Buy High Sell Higher
