I've heard that paper trading is the only way to go. You can average down as much as you want and never use stops, avoiding that pesky problem of getting stopped out of a losing trade just before it moves in your favor. You can then take your paper profits, buy a paper airplane, and fly far, far away from your angry subscribers.
Heh. Looks like it better be a paper airplane! Ol' Lenny apparently stiffed those pilots on his last trip and they are suing hm. They better get in line fast - it's gonna be a looong line!
http://adamsoptions.blogspot.com/2009/02/this-week-in-lenny.html#disqus_thread lenny sez: Last Friday, TheStreet.com sent out an early evening Alert regarding how my Amdocs (DOX:NYSE) position was scored and changed the stat book to reflect the most conservative accounting approach. However, based on the volume, I know that many followers of my newsletter made money on this trade. Therefore, I would like to poll my readership for a complete consensus of the play from your side of things. I am asking that each subscriber send me an email this morning, here at TheStreet.com, to lenny.dykstra@thestreet.com and let me know how you all came out with Amdocs. 1) Did you follow the trade? 2) Did you decide not to follow the trade? 3) Did you make money on the play? How much? 4) Did you lose money on the the play? How much? I would like to hear back from everyone, as this is very important to me. Different scenarios and recommendations that I posted in my column provide readers with the tools to make informed trading decisions; this means divergent results were possible, depending on which way it was played. These scenarios confuse the possible final outcome. Next week, I will post the results of the poll and let everyone know the score. To be perfectly clear; when I began my Nails on the Numbers newsletter for TheStreet.com, this was not a play I recommended for the service (it predates the launch of "Nails on The Numbers" at TheStreet.com). adam sez: But hey, if people fall for this, here's a freebie off my newsletter service. Buy 1000 SPY. If the market goes up, sell it for a $1 profit. If the market goes down, keep buying 1000 lots until it rallies and you can get out for a profit of $1 over your average price. If it never rallies, just pick a price in the past where you should have sold and answer some questions to my poll.
Hey, what happened to the results of that Amdocs trade? Oh, Lenny's 'scorecard' only tracks WINNERS now... I need to start doing that in my journal. http://thelennydykstrareport.com/news/?page_id=80
Back to the statement that the OP posted: Dykstra is not one awful trader, because it is not even apparent that he trades. He is, however, one awful human being, because he charges for reckless advice and then cannot face the music when his imaginary portfolio implodes.
Why doesnt the SEC investigate someone like Dykstra? He misleads, misrepresents and simply lies. This guy is just like Madoff.