Finding Winning Race Horses in the Mud
There’s a book by Andrew Beyer called Picking Winners.
Beyer lays out his methodology for picking winning race horses.
This betting expert goes into great detail about how he picks winning horses using what 99% of people would consider minutiae. The horses speed, condition, trainer, track condition, pedigree, etc. etc.
Admittedly my concept of horse betting is “What’s the horses name? Oh, that sounds like a winner.”
I didn’t read Beyer’s book years ago to learn how to pick horses. But, to see how a guru horse picker puts together a methodology. Given the 1,000s of variables, as Beyer says, where do you start?
I had the same experience when I went to Wall Street to learn trading. There are a LOT of ways to make money in stocks, but which one would work best for me? Which of the 1,000s of variables should I use?
As with Beyer and his horse racing picks, over time I put together a set of variables and patterns I was comfortable with, and went to work.
Since you’re reading this email, you know that trading warrants was one area I focused on. But, I didn’t just take what my mentor at the time taught me and stop there. I added in technical analysis, candlestick charting, valuation, and a fairly keen sense of spotting patterns.
As I’ve said many many times, it’s learning to see these patterns, the way Beyer does with race horses, that makes you real, consistent money.
I did a post last week at on how I’ve made over 100% trading AIG warrants (and stock and options) this year. I wanted to go deeper on that, and also tell you where I think the warrants are headed now.
So, I put together a short video for you. Check it out here.
And, as always, if you’re looking to up your warrant trading game, and maybe pick a few trifectas…