I have found that several "myths" seem to be prevalent amongst the
ranks of newbies and veterans alike. Here they are:
MYTH: A low-priced star player is a great investment.
REALITY: A low priced player has a low price for one reason: He is rarely surpassing his per game estimate, thereby earning continual negative boni, or no boni at all. Often,
he is simply not playing anymore, perhaps due to an injury.
MYTH: A big-name player is a great buy.
REALITY:Mario Lemieux is a great player. Kobe Bryant is a great player. However, if his estimates are high, his nightly return could be no more than merely "adequate," and
not really worthy of wasting your time.
MYTH (Underpriced Player syndrome):"[insert low-priced player here] is underpriced. He is worth at least the same as [insert other higher-priced player here].
REALITY: A player' s stock price is where it is because
that is precisely what he is worth.
MYTH: The Buy-and-Hold in a small port
REALITY: Buying stocks and holding them for excessive , unproductive periods of time is a bad move if you are trying to see the fastest growth. In particular, NFL stocks
should be dumped ASAP after Boni are awarded. Keeping them in your port will only cost you money.
Even if the price of the respective stock doesn't drop substantially, imagine the LOST boni resulting from not having that cash available for investing in other players
in other sports the remainder of the week....
Exception: If you have a HUGE port, this becomes irrelevant, because you won't find enough automatic investments to spend upwards of $100 million on a nightly
basis.
