This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Investor Types to Avoid

Editor's note: This is the continuation of a special collection of previously published investing lessons from RealMoney contributor and market strategist Barry Ritholtz .



Has this ever happened to you? You've been waiting to deploy some fresh capital . You've done your homework -- checked the charts , looked over the fundamentals . You are ready to make a buy.

But moments before you pull the trigger, someone casually mentions something negative about this new target. It could be a coworker or some talking head on TV. Regardless, you hesitate, decide to do some more research, just to be sure... and the next thing you know, your stock pick is off to the races -- without you.

All you can think is, thanks for nothing, buddy.

Apprenticed Investor: 6 Investor Types to Avoid

We've all had chance encounters like this. They can cause self-doubt, make you second-guess yourself, wreak havoc with an investment strategy.

There are two solutions to dealing with this kind of distraction: One is to become more confident in your own skills. This will occur as you continually educate yourself, which is what " The Apprenticed Investor " is all about. The more confidence you develop, the easier it is to stick to your investment plan and not let third parties bump you off track.

The other solution is simpler: Learn to recognize destructive investor personalities -- and stay as far away from them as possible.

Last week, we discussed why gains and losses are ultimately the investor's responsibility . But there are some people who can temporarily knock you off your game: These are people to avoid.

The Dirty Half-Dozen

  • The Enthusiast: He's always breathless; his companies are always on the verge. "Big news is due any day now." There's always someone about to "snap these guys up." He's entranced with new management, i.e., "The new CFO was employee No. 12 at Dell (DELL)!".
  • At one time or another, we've all been bitten by the infectious salesmanship of the enthusiast. The story always sounds great... yet somehow, the stocks never seem to work out.

  • The Tipster: The easiest of all the archetypes to recognize, this guy always has a hot story that simply cannot wait. It's about to happen any minute -- a deal to be announced or an imminent takeover.
  • While the "enthusiast" is all excited about the company, what gets the tipster jazzed is the source of info. "This guy I know is (choose one) head trader at a hedge fund /runs a major wire house desk/at the FDA/on the board of directors."

    1 of 3

    Select the service that is right for you!

    COMPARE ALL SERVICES
    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

    David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    Submit an article to us!
    DOW 17,172.68 -107.06 -0.62%
    S&P 500 1,994.29 -16.11 -0.80%
    NASDAQ 4,527.6890 -52.10 -1.14%

    Brokerage Partners

    Rates from Bankrate.com

    • Mortgage
    • Credit Cards
    • Auto

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs