This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Investing Lessons From the Race Track

LAKE GEORGE, N.Y. ( TheStreet) -- The horses are back at Saratoga, and I've made my annual August trek up to the Adirondacks to spend time at my vacation house overlooking Lake George. It's the perfect place to enjoy some boating and take in the racing at the grand old thoroughbred race track in Saratoga.

Last year, in " Five Investing Tips I Learned at the Track," I highlighted some lessons and strategies that are applicable to both investing and horse-betting:

  • Don't Bet Every Race
  • Do Your Research
  • Eliminate the Losers
  • Not All Favorites Are Good Favorites
  • Be Aware of Derivatives
  • After nearly 30 years of going to the races, I still learn more about investing and betting with every visit. I would like to share three more lessons I've learned at the track.

    1. Stick With Your Strategy

    My colleague Mitch Rosen and I co-manage a Web site called Horsepicking.com. While Mitch is an excellent handicapper, my personal acumen is in figuring our how to bet the races. Similar to my trading models , I've developed a betting model that formulates a betting strategy based on Mitch's picks.

    When we deviate from our strategy, as Mitch sometimes likes to, we often miss out on opportunities. When we stick to our model, our expected return is always positive over an extended period of time. When it comes to investing, you need to do the same.

    A side lesson: Picking stock and learning how to buy and sell them are two separate and distinct talents. If you don't have them both, you need to work with a good partner.

    2. Understand the Downside

    Investing is not only about picking winners. It's also about generating returns on investments. Some favorites will return such low payouts that it is hardly worth money betting on them.

    1 of 3

    Select the service that is right for you!

    COMPARE ALL SERVICES
    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

    David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    Submit an article to us!
    DOW 17,156.85 +24.88 0.15%
    S&P 500 2,001.57 +2.59 0.13%
    NASDAQ 4,562.1890 +9.43 0.21%

    Brokerage Partners

    Rates from Bankrate.com

    • Mortgage
    • Credit Cards
    • Auto

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs