Friday, 17 September 2010

Trading Tennis Before and After A Grand Slam

As tennis traders, we all look forward to the major grand slam tournaments. However, if you are not careful the profits that are generated in the slams can be severely compromised by what goes on in the few weeks before and after. By exercising a little caution, we can be ready for the freak results and ensure they do not damage the trading bank.

In the 2 weeks leading up to a grand slam, many top players will probably only have one thing on their mind. Of course, they want to come into some form but at the same time it is not the end of the world if they exit some minor tournaments at an early stage. On the other side of the court, there may be an outsider or qualifier. This player has absolutely nothing to lose and will strive to compete against the big name.

After a grand slam tournament, it is a case of ‘after the lord mayor’s show’. The high profile event that is beamed around the world has finished and it is time to move on to the less illustrious events on the calendar. This is a dangerous time if you are putting large amounts of money in to the market. As before, the favourites can sometimes lack motivation while the outsiders do not have that problem.

In most cases, the better player will prevail. That said, it would be prudent to keep an eye on your stake sizes. For the 2 weeks before and after a grand slam tournament, I always reduce my stakes at least until the latter stages of these tournaments. If you find yourself in a spot of bother, this allows you to increase your stakes and trade your way out of trouble.

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