Have you got the X-Factor?
Last year I made a killing on X-Factor, but I’ve been a bit quieter this year. Mainly thanks to not being able to get the risk/reward mix right.
The interesting thing about reality TV shows is that there are no rules or models that you can apply to the market. The unexpected can and will happen, often. Therefore I am always looking for outliers, things that are seem certain or very un-certain but that any producer or editor can catapult into the limelight. Since public voting became commonplace in these shows you can’t rule out that influence either.
This year we have had the ‘scandal’ that has brought some real outliers into contention. The big one being Amelia Lily who was out of the competition and laid at 1000 only to brought back into the mix and now trades at 6.80. You need very, very few of these to get a long term payoff. Always be thinking out the unthinkable.
Category: Alternative markets, Trading strategies
