Tennis & Stocks Metaphor
At a business conference I just attended, I had an idea come to mind regarding a metaphor between stocks and my favorite sport, tennis. Being able to and knowing when it is appropriate to go long on a stock is like being able to hit an excellent forehand. Being able to short a stock and having the knowledge when to do so is like hitting a good backhand. Knowing your stock market patterns is like having anticipation and knowing to what side your opponent will hit the ball to so you can be ready to make money, or as in tennis, to hit a winner. Volume, which is the likelihood that the stock will continue to go in the direction it was previously moving, whether up or down, is like having the stamina to continue playing tennis at your top level. And if your stock has momentum, that will be like as tennis players call it “In the Zone” where you are on a roll and hitting your shots well.