Posts filed under “Apprenticed Investor”

New Column up at (01/22/08)


I have a new Apprenticed Investor column up at, titled  "Why Bottom Guess?"

The premise is that most individuals are poorly served by trying to catch the falling knife. Instead of bottom guessing, waiting until the downtrend is broken will better serve their interests.

Here’s an excerpt:

"One of the questions we get each correction is whether or not traders/investors should try to pick market bottoms. The background music is an orchestra of bottom callers, the vast majority of who are, shall we say, premature. Eventually someone gets it right, but I never have been convinced it wasn’t a function of random luck.

For the vast majority of Wall Street participants, however, this guessing game tends to be rather expensive. [It] is exceedingly difficult. The ideal conditions and circumstances for bottom picking are rare, and the tools necessary to do so are even rarer. Most traders and investors do not have:

    * the requisite skill to identify these circumstances;
    * the obligatory patience to wait for these conditions;
    * or the compulsory discipline to cut losses when the trades don’t work out.

For most people, the risk/reward ratio is simply not worth the capital risk . . .


Don’t Just Do Something. Sit There!
Barry Ritholtz, 1/22/2008 9:41 AM EST

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

12 Investment Principles

Category: Apprenticed Investor, Investing, Trading

11 Rules For Better Trading In 2008

Category: Apprenticed Investor, Trading

New Column up at (01/03/08)

Category: Apprenticed Investor, Investing, Markets

New Column up at Real Money (01/02/08)

Category: Apprenticed Investor, Corporate Management, Investing, Markets, Technical Analysis, Trading

Lessons from 2007

Category: Apprenticed Investor, Corporate Management

From Worst to First Second: Business Week Forecast 2007

Category: Apprenticed Investor, Financial Press, Investing, Markets

Goldman Sachs: Sell Tech Selectively

Category: Apprenticed Investor, Corporate Management, Earnings, Technology, Valuation

Follow Up: Nine Stocks for Playing the Long Side Safely

Category: Apprenticed Investor, Financial Press, Investing, Technical Analysis, Trading

3 Things You Need to Do (but Won’t)

Category: Apprenticed Investor, Investing