Today’s stock market lesson comes from New York Yankees shortstop, Derek Jeter.
Jeter, a perennial all-star, has been a professional ballplayer since 1995.
In those 15 years, he’s played in 2,182 games. He has racked-up 2,801 hits, 228 homeruns, and has scored 1,600 runs. His lifetime batting average is .318.
Great statistics, by any measure or comparison.
Any major league coach would love to have Jeter on their team. He’s that good.
But Jeter has also struck out 1,493 times. In fact, he strikes out at least once every 1.5 games.
That sounds like a lot, doesn’t it? Yes and no.
Let me ask you this: Do you think Jeter worries about his strikeouts?
Sure, he probably would love to strike out less. But I’ll bet you dollars to donuts that he doesn’t worry about it too much.
Do you think he apologizes to his teammates or the fans every time he strikes out?
No.
Why?
Because strikeouts are a part of the game. He knows he’s an all-star. He knows his team needs him… and that the fans love him.
More importantly, he knows he’ll get more hits than strike outs — a lot more.
In fact, I guarantee the striking out makes Jeter a better hitter. He learns from his mistakes and failures.
Dear reader, this same dynamic exists in the stock market…
Each losing trade is a learning experience, trust me.
My first year in the market was a disaster. I lost more than I made. But with each trade I closed out for a loss, I was learning what NOT to do.
Soon, my “winning percentage” started to increase. Before I knew it, I was making money trading stocks.
And that’s the golden rule of the stock market: So long as you buy more winning stocks than losers, you’ll be way ahead of the game.
Most investors are happy with a 60% success rate; i.e., for every 10 investments, six pan out.
But for trading genius Ian Cooper, that’s a baseline number.
Both Ian and I learned under the same trading experts in the mid-1990s. It didn’t take long for everybody to realize that Ian was a born trader. And he was obsessed with trying and developing new strategies.
All of his hard work and dedication has paid off. Every week I get at least one call or email from a Wall Street brokerage house asking to interview Ian. Maybe they want to hire him away from me. Or maybe they think Ian will slip up and reveal his trading secrets.
It’s easy to understand why they want to talk to him.
In his Pure Asset Trader, Ian has a track record of 61 winners out of 64 trades initiated since February 2009.
But it’s his track record in his Options Trading Pit that has everybody in awe.
Take a look at his performance since 2007…
|
|
Cumulative |
Average P/L per trade |
|
2010 YTD |
+2,068% |
+38% |
|
2009 Full Year |
+1,037% |
+66% |
|
2008 Full Year |
+2,878% |
+80% |
|
2007 Full Year |
+4,822% |
+42% |
|
|
|
|
|
Q1 2007 |
+1,488% |
+41% |
|
Q2 2007 |
+281% |
+17% |
|
Q3 2007 |
+1,754% |
+32% |
|
Q4 2007 |
+1,299% |
+150% |
|
|
|
|
|
Q1 2008 |
No options trading until May 2008* |
|
|
Q2 2008 |
+445% |
+223% |
|
Q3 2008 |
+493% |
+82% |
|
Q4 2008 |
+1,729% |
+67% |
|
|
|
|
|
Q1 2009 |
+860% |
+30% |
|
Q2 2009 |
+203% |
+43% |
|
Q3 2009 |
+16% |
-2% |
|
Q4 2009 |
-42% |
-5% |
|
|
|
|
|
Q1 2010 |
+256% |
+12% |
|
Q2 2010 |
+348% |
+29% |
|
|
|
|
|
Jan. 2010 |
+151% |
+38% |
|
Feb 2010 |
+314% |
+31% |
|
Mar 2010 |
+30% |
+44% |
|
Apr 2010 |
+969% |
+75 |
In terms of totals, that makes for +10,805% cumulative gains, with an average P/L per trade of +56.5%.
I’ve been in the market for nearly 20 years… and I can tell you that I’ve never seen results like this.
Ian has described his trading system like a Richter scale for the stock market.
A Richter scale measures the amount of seismic activity released by an earthquake. A Richter scale is always on… it’s always looking for any seismic activity. You might not know this… but every single day, there are over 8,000 “microearthquakes” that score less than 2 on the Richter scale. Generally speaking, they aren’t felt… but the Richter scale is so sensitive, it records them every day.
Ideally, a Richter scale will detect a big earthquake before it happens, allowing governments and citizens to prepare for it.
Likewise, Ian’s system scans the market every day for stocks exhibiting unusual, growing seismic activity. Ian has built his system around nearly a dozen technical indicators. Some are common indicators… and a few are proprietary to Ian.
Ian attempts to catch these stocks before they send shockwaves throughout the market.
Again, the results speak for themselves.
In the coming weeks, Ian will reveal to you more about his trading system… and how you can crush the market averages like his traders are doing right now.
If you want to get started making money with Ian’s system, read his free report.
Profitably yours,
Brian Hicks
