The Stock Market Model
Every investor approaches the stock market in a different fashion. Some people look for a quick stimulus and others take a long-term approach, often across decades. Yet everyone invests for the same reason – for a better future.
Trading in Strat-O-Matic works like the Stock Market in many respects. Player cards resemble commodities – possessing a level of performance and an expected amount of return for the future.
Success in Strat-O-Matic consists in winning championships. Yet like the financial world, many Strat enthusiasts define different levels of success. Fielding a competitive team every season or simply acquiring your favorite players provides evidence of the fascination with the game of Strat-O-Matic. Though everyone competes to win, there are different levels of satisfaction and enjoyment, just like in the financial world.
We can define success in many different methods. The desire for a better future remains the commonality of both practices. Like the Stock Market, Strat-O-Matic managers frequently employ value-investing principles.
“Buy Low, Sell High” serves as one of the better methods of building a portfolio or a Strat-O-Matic team, particularly regarding the accumulation of core or foundation players. You don’t want to overpay for a player (commodity) but you don’t want to miss on those that can contribute heavily in the future.
“Risk/Reward” brings clarity to any drafting or trading situation. Just as businesses rise or fall in a global economy, minimal certainty exists for hitters, much less so for pitchers.
Have you ever traded away an asset, whether a car, house, or other object, only to experience loss and resentment at a future date?
Trading away Player A for Player B may seem like a good idea but just remember. You may never have Player A again, and the price of re-obtaining his services may run into astronomical proportions.
Even in cases of making the best deal possible, you’re always losing a commodity or item of value. This consideration should govern all transactions, even those favorable to you.
Selling stocks that perform well on a consistent basis isn’t a good idea, even with the possibility of matching or exceeding the current rates of return.
Every successful investor requires a broker, someone who helps with financial transactions and exchanges. Making the transaction isn’t always as crucial as the timing or execution of the decision.
The other draft league managers operate in a role similar to a broker. They assist in making player transactions or providing help with questions through advice or opinion.
Just as a successful investor knows and understands the role of a broker, the Strat-O-Matic manager must acknowledge the actions and habits or his competitors.
Most people don’t do business with a wild, aggressive car salesperson. A calm and composed individuals makes a greater impression, probably more sales, than someone with an assortment of slick platitudes and questionable ethics.
Finding the right trading partner in Strat-O-Matic may prove half the battle. You’ll certainly reach better results with someone you know, a person with a good history, than dealing with someone whose only intention is getting you to make a bad deal though subtle intimidation. Above all, shop around for better bargains or deals, just as you do with buying bonds or mutual funds – or buying a car.
You don’t buy the first car or certificate of deposit that comes your way. Why should you take the first offer you receive for one of the players on your team?
Playing the Stock Market also requires a proper set of attitudes and expectations. Most people do not achieve financial success overnight and then retire the following day. Simple drafting or trading decisions will not turn a bad team into a great one, or vice versa. Multiple decisions of the right order, however, can transform any team into a championship one, although this process typically skirts the substantial margin of safety necessary for operating or managing a roster.
The Stock Market, judging by a majority of commentary on the subject, involves research, patience, and time. These three qualities offer many benefits in the area of trading, plus managing your roster as a whole.