Five Lessons from Football to Score a Winning Portfolio

From the Football Pitch to the Trading Floor

The 2018 FIFA World Cup is set to kick-off in a couple of weeks. Through glazed eyes and sleepless nights, football fans across the globe will be neglecting their spouses and family for at least a month to cheer on their favourite team into the finals.

But beyond the dribbling and hat-tricks, the game of football also offers valuable lessons that investors can use.

Here are 5 lessons from the football pitch that you can apply in your portfolio management:-

Lesson 1: Stay on the Ball

For 90 minutes, players on either side of the field have only a single objective in mind. To score the most number of goals within the allocated time-frame.

Similar to investing, you need to define your objectives clearly according to your investment horizon and wealth needs.

It’s easy to lose focus in the game when stakes run high and emotions get the better of you. The football pitch can be an assault of the senses with the thunderous cheers of the fans applauding and the field becomes mired in mud before the slinging begins.

Markets can be equally nerve-racking with investors often engulfed with a torrent of information and data, which is made even more stressful because your money is on the line.

But, just like how a striker is able to dribble past opponents to score, an investor must be able to navigate through the trappings of market to block out noise and stay focused on their objective.

Tackle your way to seize opportunities when markets dip, but also have the mental fortitude and self-awareness to know when to conserve your energy to last the entire game

Lesson 2: Diversify your Squad

Having a well-balanced team is like having a diversified portfolio. With only 11 players in the field, you have to manage the available resources at your disposal to assemble a team with killer instincts and an indomitable will to succeed.

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