Posts filed under “Apprenticed Investor”

Investing via Media Market Timing

Yesterday, I discussed why the Barrons vs Cramer debate was irrelevant, and why people should never invest based on what they watch on TV.

A number of commentors observed that despite the many exhortations to think of television as merely entertainment, many a fool are still watching Mad Money for investing insights.

When I wrote the Lose the News column, I referenced Neal Frankle’s book, Why Smart People Lose a Fortune. Given that so many people still haven’t figured out what TV and the finacial press are for, perhaps its time to revisit the charts from Frankle’s book:

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Lose the News: A Graphic Depiction

All charts via Why Smart People Lose a Fortune

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Previously:
Barron’s vs. Cramer, Part II (February 2009)

http://www.ritholtz.com/blog/2009/02/barrons-vs-cramer-part-ii/

Sources:
Apprenticed Investor: Lose the News
Barry Ritholtz
The Street.com, June 16 2005

http://www.thestreet.com/story/10228215/1/apprenticed-investor-lose-the-news.html

Source:
Cramer’s Star Outshines His Stock Picks
BILL ALPERT
Barron’s FEBRUARY 7, 2009

http://online.barrons.com/article/SB123397107399659271.html

Category: Apprenticed Investor, Financial Press, Markets

Do You Have a ‘Risk-Taking’ Brain ?

This time of year, many investors are looking at their asset allocation, and stock selection. Perhaps they should be asking themselves, “How dense are my dopamine receptors?” As it turns out, some people process the brain’s “reward” chemicals differently, depending upon the number of receptors they have, The BBC reported on a recent study by…Read More

Category: Apprenticed Investor, Psychology, Science, Trading

What Was Most Surprising About Writing ?

A friend asked me an interesting question over the weekend: What was the thing about writing the book that surprised you the most? Lots of things about the process were pretty much as I expected. The deadlines, the structural changes, the battles with publishers/editors — were all pretty much as you would imagine. The importance…Read More

Category: Apprenticed Investor, Bailout Nation, Film, Intellectual Property, Psychology, Television

10% Intraday Swing

No one knows the future, but we can play the odds when they are in our favor. Today was one of those days. What was looking like a shaky retest now looks like a reverse head & shoulders low (or a triple bottom). For those of you who have been paying attention to both the…Read More

Category: Apprenticed Investor, Markets, Technical Analysis, Trading

Retest of the October Lows

Markets have come increasingly close to their October 10th lows. Contrary to what you may have read or heard on TV, this is precisely as it should be. Why? Major lows get retested. That is a basic tenet of market behavior, and crowd psychology. (This has been verified by a variety of studies by different…Read More

Category: Apprenticed Investor, Markets, Psychology, Technical Analysis, Trading

The Death of Buy and Hold

click for video

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Note my 5 stages of grief meme has taken hold:

The five stages of death are denial, anger, bargaining, depression and finally, acceptance. We bring it up, because right now, Wall Street is really struggling with that last one, acceptance.

We’re talking about the death of that time honored investment strategy, buy-and-hold. Investors just can’t let go, and they need to.

Thanks to black October, the S&P 500 has now lost a fifth of its value over the last 10 years. According to Jeff Macke, “2008 is the year that will go down in history as the year that long term investment died as a thesis.”

And that means it’s time to move on.

But just because buy-and-hold is pretty much dead and buried, that doesn’t mean you can’t make money anymore.

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Source:
The Death of Buy and Hold
Lee Brodie

http://www.cnbc.com/id/27651174

Category: Apprenticed Investor, Investing, Markets, Psychology, Video

Questions For Your Financial Advisor

Category: Apprenticed Investor, Trading

Lose the Wall Street Research MSMedia Blogs

Category: Apprenticed Investor, Financial Press, Psychology, Weblogs

Bob Farrell’s 10 Rules for Investing

Category: Apprenticed Investor, Contrary Indicators, Investing, Markets, Psychology, Short Selling, Trading

Is the Market Still a Future Indicator?

Category: Apprenticed Investor, Hedge Funds, Markets, Trading, Valuation