Tscm_1I have a new column starting on TheStreet.com. Its called "The Apprentice Investor." Its a weekly discussion which will appear each Monday.

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For the novice investor, there are plenty of sites that will help them "dip their toes in the water." For the pros, more data and commentary is available than could be read in lifetime. A great void, however, stretches between the two. Its like a barbell. There is no "Sophmore" commentary between the newbie and the more sophisticated investor.

Ironically, that transition period is where investors do themselves the most damage. Just as they feel they have learned a thing or two — more confidence begets larger and more aggressive trades — they get mangled.

I’ve seen it far too many times to count.

What I have in mind is to help transition a reader from frosh to grad student; An accelerated course of the school of hard knocks — minus much of the costly pain.

There are many goals I hope to accomplish with the Apprenticed Investor, but let’s focus on three:

First, I hope to share with you the lessons, experiences and skills I have learned over the years. Not give you a fish, but teach you to fish. Hopefully, you won’t have to pay the expensive tuition these lessons originally cost me (i.e., $$$ & losses).

Second, I hope to make clear the challenges of trading/investing. Sure, you know investing is tough — but why is it so? What’s the reason that trading is so damn hard? Why do so many people — including the pros — fail to outperform? Learn the reasons for this, and you will have a much better understanding of the field of battle . . . and have a chance at superior performance, maybe even outperformance (I’ll explain the difference later).

Last, I want to provoke you into thinking. Complacency is the enemy of the investor. Get too comfortable and the markets will toast you. An enigmatic Greek philosopher named Heraclitus observed that "nothing endures but change." That’s as true today as it was 2,500 years ago in Heraclitus’ time. Failing to adapt to an ever shifting landscape is a sure path to ruin.

The first column goes up today, and its called "Expect to Be Wrong."

Please check it out, and be sure to tell me what you think.

Category: Investing, Markets, Media, Psychology

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

9 Responses to “The Apprentice Investor”

  1. Peter says:

    I really look forward to your new series at the Street.com

    Regards
    Peter

  2. Barry,

    This should help a lot of people. I put up a link to the TSCM article on my blog. This is exactly what I am trying to do for my readers. Good stuff.

  3. JWC says:

    Cool. I look forward to reading it every week.

  4. anne says:

    There are so many people who need such a column; always realistic….

  5. Whosoever wishes to know about the world must learn about it in its particular details. Knowledge is not intelligence. In searching for the truth be ready for the unexpected. Change alone is unchanging. The same road goes both up and down. The beginning of a circle is also its end. Not I, but the world says it: all is one. And yet everything comes in season. – Heraklietos of Ephesus

  6. The Apprenticed Investor

    Barry Ritholtz has a new column on TheStreet.com entitled Apprenticed Investor.

    This new column — “The Apprenticed Investor” — is all about making you a better investor. Not just a better stock picker, but someone who knows how to preserve capital…

  7. Bill says:

    It would be great if someone could address the question: Where does an investor put his money during a period of global downturns in most equity markets (so stocks are a bad idea), rising interest rates (so bonds are a bad idea), and a real inflation rate between 3-10% (so you lose money if you are in cash)?

  8. tom Kilker says:

    I read your 1st “apprendiced investor” by a ref from Bill Bara. Today ,4/11, I klicked on street.com at the StategyLab site and I found no ref to your new series.

    Help

    Thanks

    Tom Kilker tomkilker@cs.com