Editor's note: Lenny Dykstra will explain his deep-in-the-money calls (now 76-0 for the year) at TheStreet.com Investment Conference on Saturday, Oct. 25. Click for details. When the going gets tough, the tough get going. This is true in all facets of life. I believed it when I laced up my cleats each and every game, and I believe it now that I am an active trader. The players currently locked in the battle to go to the World Series need to embrace that mindset as well. You need to think that way in order to be successful or else you will fold under the weight of the situation.
The market has been wild lately, causing a lot of stress and fear for a lot of people. Those who panic increase their chances of making a mistake. Monday was a good day ... a real good day. The market roared back, and the Dow gained more than 900 points, more than 11%. A lot of people were feeling a lot better. But remember, this was on the heels of some major losses. The markets got pummeled last week, losing ground every day, piling up losses on top of losses. Monday, traders rallied back. They were in a hole and a did nice job of starting to dig their way out. Discipline and keeping cool have helped me score time and again in October. I know it sounds funny to say that I have been winning during this horrible stretch in the market, but the facts are the facts. I am now 76-0 with six wins in October so far. I am also just a hair shy of $200,000 in wins this season. My newsletter Nails on the Numbers is on a roll. To check it out, click here.
I have "grinded out" wins when I had to. My system allows for wins in up and down markets. I repositioned my stocks that were down and tried to buy some good companies that were beaten down so badly, it didn't make any sense. Monday I picked up a quick $1,000 win with Microsoft ( MSFT), a company I have already won with earlier this year. I recommended buying 10 contracts of the January 2010 $17.50 calls (WMFAX) on Oct. 8 and the order was filled two days later. In just three days, I picked up an easy $1,000 on an investment of $7,700. This may seem like a slam dunk considering how much the market gained yesterday.
However, while there was blood in the streets last week, I had several picks cross the finish line. I grabbed a win with Cisco ( CSCO) on Friday. I told readers I was picking up 10 contracts of the January 2010 $10 calls on Oct 10, and it immediately hit my target price of $8.20. It was only in play for a few hours but turned in a $1,000 win. I also picked up a $2,000 win with Texas Instruments ( TXN), which I recommended on Oct. 1 and filled on the Oct. 7. It was in play for only three days and I scored another big win. Last week I also picked up quick $1,000 wins with Chesapeake Energy ( CHK) and The Shaw Group ( SGR). The ability to get tough during turbulent times is the key. Always remember: Life is a journey, enjoy the ride!