Has anybody read Lenny Dykstra’s articles on street.com where he claims to be 87-0 in his trades? As near as I can tell his strategy is akin to the blackjack strategy of doubling your bet every time you lose on the theory that you have to win eventually. As in blackjack, the strategy only works with unlimited bankroll and no limits on the size of each bet. It seems dishonest to promote this strategy as exhibiting either skillful trading or stock picking.
The steroid injecting, tobacco chewing Phillie?
Quote: “Those who have been reading my columns religously this year may have noticed I have established my own pastime: winning. *****While I have several picks still in play*****, I am undefeated on the season. I now sit with 86 wins and zero losses on the books.” From what I have just read (wasting several minutes of my life in the process) his trading strategy is: Buy(call) If Value(call)>=$1000 Then Sell(call) Else hold(call) So long as he has the margin (and a long expiry call) then he can claim 100% success as he never “books” the loss. It’s also handy that he has a load of mug punters to “follow” his trades - and he states he sells out once he makes $1000. Over here we call that pump and dump. Edit: sure enough: “However, I like to pick options that have expiration dates that are very far out – most of my picks lately have been for options that expire in January 2010 or later. I have just two that are set to expire before that – one in January 2009 and the other in April 2009.”