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Apprenticed Investor: 10 Lessons Learned in the Selloff

Posted By Barry Ritholtz On May 31, 2006 @ 9:45 am In Apprenticed Investor,Economy,Investing,Markets,Psychology,Technical Analysis | Comments Disabled

Tscm_1 [1]The latest "Apprentice Investor [1]" column is up at TheStreet.com: 10 Lessons Learned in the Selloff [2].   

The column takes a look a what investors and traders can take away from the big whackage in May 2006. I point out in times like these, investors may find it instructive to step back and see the bigger picture. Sell-offs and portfolio damage such as the recent market shellacking don’t have to be all bad. There are lessons to be learned.

What follows are the top 10 lessons astute investors might have picked up — or at least may have been reminded of — during the May 2006 selloff.

What are the 10 things? Here’s the list:

1) ‘Cheap Stocks’ Can Always Get Cheaper

2) Macro Issues Matter

3) Oversold Markets Can Become More Oversold

4) Support & Resistance Don’t Always Hold

5) Investors Have Short Memories

6) A Major Shift Is a Subtle Process

7) Stop Losses Are Lifesavers

8) Money Management Is Crucial

9) When Your Timing Is Off, Step Away

10) Smart People Do Dumb Things

Be sure to check out the column [2] for the full explanation of each of these items; its posted on The Street.com (free).


Prior  "Apprentice Investor [1]" columns can be found here [1].


10 Lessons Learned in the Selloff [2]
5/30/2006 10:16 AM EDT

Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2006/05/apprenticed-investor-10-lessons-learned-in-the-selloff/

URLs in this post:

[1] Image: http://www.thestreet.com/tsc/landingpages/apprentice

[2] 10 Lessons Learned in the Selloff: http://www.thestreet.com/_tscs/university/personalfinance/10288510.html

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