Based off of our earlier post on how fantasy football relates to the stock market, we are going to review Habit 1 and demonstrate how your skills in fantasy football can make you money in the stock market. Habit 1 talks about how the best fantasy football drafters spend a ton of time preparing. Like everything in life, what you put into it is what you get out of it. This is how to prepare in both fantasy stock market as well as fantasy football.
The first tip from ESPN is:
A) Study the rules and, more importantly, figure out the best ways to exploit those rules.
In football, is it a half-point per reception? Or full PPR? Is it 1.5 PPR for tight ends? How many roster spots do you have? Can you stash players in an IR spot? How are free-agent players awarded? Seriously, you need to read and explore nook and cranny of your league’s rules and settings.
This is no different than the stock market. There are many techniques used by the so-called “professionals” but the beautiful thing is that the field is being leveled with new apps like Robinhood, no fee commission trades, and access to the same data that hedge funds use.
The second tip is:
B) Start your research by watching, reading , and listening.
Everyone has different preferences and amount of time, so whether it’s TV, digital video shows, podcasts, columns or social media, start digging in. Immediately. You need to have an opinion on every player and more importantly, on that player (and that player’s position) relative to every other player. Understand there’s way too much information out there, so it’s not about the amount you consume but the quality of it and how you interpret it.
It’s amazing but this is exactly the same issue with the stock market. There is a ton of info, articles, videos, and tv shows that talk about various parts of the stock market. The key is to find people you trust and understand, and distill down what is really important.
The third tip is:
C) Figure out where you’re drafting.
Are you drafting on ESPN.com (or the ESPN Fantasy App), where more people draft than any other site in the world? Or are you forced to draft somewhere else because the commish is a stubborn lummox? And, of course, if you’re playing in a league with friends/family/co-workers and have played with them before, hopefully you have an idea of their tendencies as well.
Similarly, in the stock market, there are a ton of different apps and platforms you can choose from. We personally love ThinkorSwim for all of our analysis but we are flexible with which platform we do our trading on to ensure we get the best fees and commissions. No matter what you choose, understanding how your platform works is essential for success.
The last tip is:
D) Mock draft like crazy.
Once you’ve done A, B and C (and ideally know your draft spot), let’s put that knowledge to the test and do some mock drafts. A ton of them. As many as you can. The more you draft, the more scenarios you try, the more prepared you will be, and the more familiar you’ll be with the draft room itself.
This last tip in fantasy football is also essential in the stock market. The key to success is simulation. We don’t do mock drafts but ThinkorSwim has the paper money feature which allows you to do simulated trades with fake money. That way, you can make all of your mistakes during practice as opposed to when there is real money on the line.
Hopefully, you enjoyed this first foray into the habits of successful fantasy football drafters and stock market traders. It’s amazing how similar fantasy football is to the stock market and how many of the same tips you do during the football season will make you a highly successful stock market trader. Guess you never realized that fantasy football is showing you how to prepare in the fantasy stock market.