There is no doubt that both the financial markets and football are very popular and some may be surprised that there is any relationship between these two areas as it seems that stocks and Forex
One thing and football another!
The football team is similar to traders in profit and loss, in trading there are two parties, the first is a seller and the second is a buyer, and there is profit and loss, and buying and selling transactions take place on trading platforms and are shown in the chart or can be said as the "stadium" for investors, and in football there are also two parties, the first is a winner and the second comes out with a loss.
In investing before opening any deal, investors resort to many trading strategies, technical indicators and other auxiliary tools to analyze the markets controlled by investors "players" and also each football team before playing any match they use their own tools and different strategies to create a game plan during their next match.
Training First,
football players train in their own field to try a new strategy and game plan before adopting it in any match, and this is the case of most professional and novice traders alike who prefer to try their new trading strategy with a demo account to see the pros and cons before adopting it in their real trading account.
What is the similarity between football and investment?
Football is a popular game known all over the world and that many deal with investment and trading as a game as well and in both cases there is profit and loss, and winning and profit comes accompanied by great joy and defeat and loss lead to a feeling of humiliation and frustration, and there is no dispute that one team outperforms another in football as long as this is done with full commitment to the laws of the game and with complete integrity and efficiency on the part of the refereeing, so superiority comes as a result of the high skill of the players and the plans and intelligence of the coaches, and this same thing applies on the stock market.
What controls both the teams and the markets?
In every country there is a general presidency for the "Youth Welfare and the Football Association" they are largely like the "Securities Commission" with some differences, and perhaps investment funds are clubs and traders are fans in football, whoever buys "APLE" shares becomes a fan of its shares, and whoever supports and depends on the general index of a currency is like the one who supports the state team.
The teams are very similar to stock indices,
in each football team a number of famous players by virtue of their successful career in playing football raise the name of this team, as well as stock indices include a number of shares of companies through which the market value of this index is determined.
The high market value,
the player's market value increases between teams and clubs through the length of his successful sports career and is also measured by the number of goals, fitness, age and other things, then the player's value rises and other teams begin to make a "certain price" offer to buy the player, and the same applies to trading, what moves the markets is the forces of supply and demand among investors for a commodity, currency or shares of a company, we review the highest paid football players in 2022 and they are as follows:
Kylian Mbappe: $128 million.
Lionel Messi: $120 million.
Cristiano Ronaldo: $100 million.
Neymar: $87 million.
Mohamed Salah: $53 million.
Erling Holland: $39 million.
Lewandowski: $35 million.
Eden Hazard: $31 million.
Iniesta: $30 million.
Kevin De Bruyne: $29 million.
After knowing the similarities between football and financial markets, the question arises, is the performance of the stock exchange affected by the victory or loss of the team in football? Studying the performance of 15 international exchanges during World Cup matches in 2010 by a number of researchers at the European Central Bank found that there were clear effects of match results on these exchanges, as there was a drop in trading volume by 45 percent during important matches and rising to 55 percent when the national team played! Another study carried out by Goldman Sachs since 1974 indicated that the performance of the stock exchange whose team wins World Cup matches outperforms the performance of global stock exchanges by up to 3.5 percent.
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Forex