World Magazine 2024
Fantasy finance is an excellent way to learn the basics and get ready for the traditional trading world. It can keep your investments at a minimum while allowing you to get a hold of all important mechanisms applied in the trading industry.
But are traditional and fantasy trading really that similar? Yes, and the primary reason is that they both rely on real-life events. That means that conventional trading strategies can help you on a fantasy finance platform. In this article, I’ll share some expert tips from traders that you can use in fantasy tournaments. Check out these strategies to try in your upcoming competitions!
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Understand That It’s All About Finding Assets for Short-Term Performance
You have different approaches to fantasy contests, but you won’t find many that last for just several weeks. This unique concept has become popular among beginners, and experienced traders, and here is why:
- The tournaments are 100% free. You don’t have to invest a single cent. It’s a great way to test these tournaments but also get comfortable with the market basics.
- You have a new chance every day. A single tournament lasts seven days, but it features a series of daily contests. You have a new chance to come up with a winning strategy every day. The only thing to consider is to stay within the deadlines!
- A generous prize pool. These prize funds secure generous rewards for best-placed tournament participants. It’s a convenient way to build your budget and get ready for real money competitions later.
The short duration of these fantasy contests means you should focus on short-term trading strategies. They stand the most chance of success with these rules.
Swing Trading
Swing trading is the basic approach that many traditional marketers use to secure profit. This strategy can be applied in short and medium runs. The idea is to identify the stock with a favorable stock movement in the near future.
Let’s say that a stock has been losing its value for weeks. However, there was some good news related to the company recently. That’s why the value started going up, and it seems that trend will continue. You should catch that price swing and add the asset to your portfolio.
Following or Playing Against the Current Trends
Participating in tournaments on a fantasy finance platform will help you get a sense of market trends. From discovering what low and high volatility looks like to learning how news affects asset prices, you’ll better understand the value fluctuations of stocks and crypto.
Recognizing the market trends will allow you to take advantage of them. You have two options – to follow or go against the trends. For example, let’s say that the value of an asset has been increasing for four days. If you believe it will continue going up for a day, it’s a great moment to add it to your portfolio. But if you don’t think that price increase is realistic and things will take a turn for the worse, skip that asset.
It’s the same if the stock or crypto value has been decreasing. If you have grounds to believe they will stop losing value, adding that asset to your portfolio could be a jackpot. Once the trend changes and the price starts increasing, it will benefit your tournament score.
Take Advantage of Moving Averages
Expert traders consider moving averages while knowing the basic info about a particular stock or crypto. This value shows you the asset’s average value during 15, 50, 100, or 200 days. You want to analyze these averages to discover whether the stock is losing or gaining value in the long run.
If you notice the 200-day moving average is considerably lower than the 15-day value, that’s a fine candidate for your portfolio. Check the latest events regarding the asset to see if there’s any reason for it not to return to the average long-term value. If there aren’t any red flags, give that crypto or stock a shot.
Recognize Different Patterns
You might notice a specific pattern when analyzing a specific asset’s price chart. These patterns present one of the tools used for technical analysis and selecting stocks to trade in conventional markets. They can also help select assets for your fantasy finance portfolio. Here are some common patterns to monitor:
Head and Shoulders
You begin by assessing the base value of a stock. From there, it should have three peaks. The outer peaks are lower (shoulder), and the middle peak is the highest (head). This pattern shows you when you can expect the price to start decreasing or increasing. Depending on the current moment in the cycle, you should choose or avoid this asset for your portfolio.
Triangles
This pattern signalizes that a particular asset has a trend of gaining value for a while and then losing value for some time. These movements continue repeating to form a triangle. Now, it’s important to note that there are three different triangle types:
- Ascending. Its peak goes up with each new price increase trend, which indicates a bullish formation. It makes that asset a good choice during the times its value goes up.
- Descending. These triangles signal that the stocks or cryptos lose value in the long run since each new peak is lower than the previous one.
- Symmetrical. Although the price goes up and down in turns, the maximum and minimum remain at a relatively identical position.
Double Tops and Double Bottoms
These represent two opposite trends. A double top indicates a bearish trend, which makes it a smart choice. It occurs when a stock or crypto reaches a top value, drops for a bit, but soon returns to the previous high price. It doesn’t happen often, so you need to identify it on time.
As for the double bottom, it shows that the asset has problems with increasing its value after it dropped significantly. It shows that the smart move is to avoid that stock and move to the next best option.
Final Thoughts
Fantasy and traditional trading aren’t that different. You rely on actual stocks and crypto when choosing a fantasy finance portfolio. That means you can apply the same short-term strategies that you would use for conventional markets. Don’t hesitate to assess moving averages market trends and analyze the asset’s volatility overall.
Fantasy tournaments are convenient since they offer a series of daily contests that allows adjusting strategy on the go. You have deadlines to submit your portfolio for each daily round, a single session lasts 12 hours, and you receive an alert about the results in your email. These unique mechanics are incredibly fun and exciting. You have the chance to profit while learning about the market in the process. Make sure to try fantasy contests today and see if you can use the strategies from this guide to come out as a winner!
