Football players and financial markets
There is no doubt that both the financial markets and football are very popular, and some may be surprised by the existence of any relationship between these two fields, as it seems that stocks and Forex are one thing and football is something else!
The football team is similar to traders with 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. The buying and selling transactions take place on the trading platforms and are shown in the diagram, or it can be said as a “playground” for investors. In football, there are also two parties, the first is a winner and the second is come out at a loss.
Each of them depends on a plan, in investing before opening any deal, investors resort to many trading strategies, technical indicators and other auxiliary tools to analyze the markets that are controlled by the “players” investors. Also, every football team before entering into any match uses their own tools and different strategies to create a plan. to play during their next match.
Training First, soccer players train in their own stadium to try a new strategy and game plan before adopting it in any match, and this is the case for most professional traders and beginners 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 many deal with investment and trading as a game as well, and in both cases there is profit and loss, and victory and profit are accompanied by great joy, and defeat and loss lead to a sense of humiliation and frustration, and there is no dispute that one team outperforms another in football As long as this is done in full compliance with the laws of the game and with complete integrity and competence on the part of the arbitration, then superiority comes as a result of the high skill of the players and the plans and intelligence of the coaches, and the same thing applies to the stock market.
What are the things that control each of the teams and markets?
In every country there is a General Presidency for Youth Welfare and the Football Association. They are very much like the “Securities Commission” with some differences. Perhaps investment funds are clubs and traders are football fans. Whoever buys “APPLE” shares becomes a fan of its shares. And whoever supports and relies on the general index of a currency is like the one who supports the country’s national team.
The teams are very similar to stock indices. Each football team has a number of players who are famous by virtue of their successful career in playing football, raising the name of this team. Stock indices also include a number of companies shares through which the market value of this index is determined.
An increase in the 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, physical fitness, age and other things, then the value of the player increases and other teams start offering a “certain price” to buy the player, and the same applies to trading, which moves Markets are the forces of supply and demand between investors for a commodity, currency, or shares of a company, We review the highest paid soccer 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.
Arling 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 the financial markets, the question comes: Is the performance of the stock market affected by the victory or loss of the football team?
During a study of the performance of 15 international stock exchanges during the World Cup matches in 2010 by a number of researchers at the European Central Bank, they found that there are clear effects of the results of the matches on these stock exchanges, as there was a drop in trading volume by 45 percent during important matches and a rise to 55 percent when the national team plays! Another study conducted by Goldman Sachs since 1974 indicated that the performance of the stock market whose team wins the World Cup matches outperforms the performance of the global stock exchanges by up to 3.5 percent.
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