Apprenticed Investor
Take Responsibility for Your Stock Losses
01/08/08 - 03:55 PM EST
Editor's note: This is the continuation of a special collection of previously published investing lessons from RealMoney contributor and market strategist Barry Ritholtz. "He who blames others has a long way to go on his journey. He who blames himself is halfway there. He who blames no one has arrived." -- Chinese proverb In the first installment of "The Apprenticed Investor," we discussed why investors should expect to be wrong, and most importantly, having appropriate plans for what to do when you are wrong. That column gave you two lessons disguised as one. Hidden within was a second, subtler message. It is so obvious, yet so ignored by investors: You are ultimately the only person responsible for your investments.
Apprenticed Investor: Take Responsibility for Your Stock Losses |
Bad Excuses for Poor Investments
At times, the excuse-making from investors is even worse. Over the years, I have heard every complaint imaginable for why losses occur. Inevitably, these gripes go something like this: "It's not my fault but the fault of:
who recommended it.
bad advice, the lousy execution they got, and how a market maker
or specialist
hurt their trade. Other kvetches? Management stinks, insiders
are dumping shares, regulators are overzealous. Margin calls
did it. Or was it the president's policies or congressional gridlock or Chinese imports? Really, who can trade when the economic data are cooked, and the "Plunge Protection Team" counters your best positioning?
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