Kass: What to Do When You're Wrong
I have a little poem I'd like to read in honor of this occasion, if I may.Here is my checklist when things go different than I expect in the markets.
Spaulding, get your foot off the boat.It's easy to grin
When your ship comes in
And you've got the stock market beat.
But the man worthwhile
Is the man who can smile
When his shorts are too tight in the seat.
Okay, Pookie, do the honors.-- Judge Elihu Smails (Ted Knight), Caddyshack
- Most importantly, spend some time objectively reevaluating one's investment thesis.
- Be honest with yourself, challenge yourself.
- If conditions have changed, change your investment strategy.
- Seek counsel from smart investors you know and sit down and discuss your thesis and get his/her feedback.
- Take ten deep breaths and do nothing for a while. Like Being There's Chauncey Gardner ... just be there and watch.
- Try to stay balanced emotionally. (Physical exercise is usually a good idea. So is a good book.)
- Do not double down or average up until some time elapses and you have enough time to settle down, analyze your positions again and get input from others.
- Finally, if you conclude your currently wrong-footed investment position will prove accurate, do not be dissuaded. Stand firm in view.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV