Listening to all the negativity and being able to brush it off isn't easy these days.
I had to do it all the time as a player. People who didn't know anything about me would yell at me while I patrolled center field, cursing at me and screaming things to try to get under my skin. I usually just laughed because most of it was so ridiculous. In order to succeed in the bigs, you can't listen to that stuff.
The same goes for investing in the markets. Everyone has an opinion and a different approach, and it can be difficult to filter out the noise. For me, I take great pride in my system and my newsletter,
. Many of my picks ring the register in only a few days for quick $1,000 wins.
won after just two days in play, while
won the same day I picked it.
took a single day to bring me a victory.
each took three days.
Winning in one day is like hitting a home run on the very first pitch of the game. However, some picks take a long time to cross the finish line, and along the way I heard a lot from concerned subscribers. I've received several emails from people calling me nasty names about my
pick from July 9.
I have won with this company before, but for some reason, this time, it was not doing well. People get antsy and nervous when things don't go quite how they planned, but the important lesson with this pick is that I stuck to my guns. I knew the reasons I chose this company were sound and that I needed to be patient.
Time was running out with my January 2009 $25 calls, and many of my readers let me know it. Instead of panicking, I kept a level head and referred back to my system. When the opportunity came, I averaged down, adding to the position when the price fell far enough. But ADM kept dipping, and when time started to become a factor, I adjusted my game plan slightly.
In the end, I held a large number of contracts. Instead of waiting for the option to rise $1 above my average entry price, I set my good-till-cancelled sell order to just 50 cents above the average entry. Later, I would lower it to just 30 cents above my average cost. This let me shoot for a lesser win while still making a big profit. On Tuesday, ADM came through, and many of my subscribers let out a collective sigh of relief.
However, the thought of cutting and running never crossed my mind. I tell my readers that I do not employ a stop-loss strategy, even for a pick like ADM. For those who are unfamiliar, a stop-loss is an automatic trigger to sell out of a position once it falls to a preset level. It is mean to prevent big losses on a pick.
I have faith in my picks, and I expect them to get their nose across the goal line for the win. With ADM, it was important to stay level-headed and stick with my plan. Those who stayed by my side were rewarded. Had I employed a stop loss, I would have walked away a loser. Instead, I put some more money in my pocket.
I don't employ stop-losses because I actively monitor the picks every day, so I do not see a need for it. The market reacts differently to various situations. In short, it is not part of my deep in-the-money calls strategy. Instead, I trusted my system and was rewarded with a $7,650 win.
Always remember: Life is a journey, enjoy the ride!
Lenny Dysktra manages Nails on the Numbers, a subscription service sold by TheStreet.com. He is 81-0 this season on his options picks. Dykstra writes regularly about options trades for TheStreet.com.
At the time of publication, Dykstra had no positions in stocks mentioned.
Nicknamed 'Nails' for his tough style of play, Lenny is a former Major League Baseball player for the 1986 World Champions, New York Mets and the 1993 National League Champions, Philadelphia Phillies. A three time All-Star as a ballplayer, Lenny now serves as president for several privately held businesses in Southern California. He is the founder of The Players Club; it has been his desire to give back to the sport that gave him early successes in life by teaching athletes how to invest and protect their incomes. He currently manages his own portfolio and writes an investment strategy column for TheStreet.com, and is featured regularly on CNBC and other cable news shows. Lenny was selected as OverTime Magazine's 2006-2007 "Entrepreneur of the Year."