This Day On The Street
Continue to site
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

Is Google Another Enron, Facebook or Knight Capital?

For decades, we fell into the sleepy assumption that real estate investment carries no risk. That dream died hard.

Stocks are no different than real estate. Or any other inherently risky endeavor.

Part of that risk -- like it or not, fair or not, for better or worse -- includes unnatural, unexpected or sometimes nefarious occurrences.

Somebody hits send too early. People lose money.

Knight Capital's computers go haywire. Somebody has a heart attack after logging into their E-Trade account.

Facebook's IPO doesn't go to $100. Rip Mark Zuckerberg a new rear end because he wears a hoodie and honeymooned with his new wife.

Enron collapses. Ban 401(k)s.

Where does it end? Where do we draw the line? What's "preventable?" What can we regulate? What can't we regulate? It's all a big mess. Always has been.

It's nobody's job to hold our hands, as humans making our way through this thing called life or investors navigating the stock market.

As with most of life's pleasures, you're going to get screwed from time to time.

I don't see the sense in complaining about it, demanding more laws or regulation from bloated entities who clearly have no idea how to regulate.

Learn from your mistakes. That's key. And do whatever it is that you do to protect yourself (diversify, use options, buy bonds, get an emergency fund, put it all on Sloopy in the 7th at Belmont, pray). That might even mean staying out of the stock market completely. That's extreme, but, for some folks, it's probably the choice that brings the least anxiety and most sanity.

At the time of publication, the author was long FB.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Rocco Pendola is a private investor with nearly 20 years experience in various forms of media, ranging from radio to print. His work has appeared in academic journals as well as dozens of online and offline publications. He uses his broad experience to help inform his coverage of the stock market, primarily in the technology, Internet and new media spaces. He has taken a long-term approach to investing, focusing on dividend-paying stocks, since he opened his first account as a teenager. Pendola, 37, is based in Santa Monica, Calif., where he lives with his wife and child.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $117.77 -0.67%
GOOG $695.60 -0.37%
KCG $13.76 -1.90%
AAPL $95.39 1.90%
TSLA $233.49 -3.40%


Chart of I:DJI
DOW 17,762.45 -128.71 -0.72%
S&P 500 2,062.83 -18.60 -0.89%
NASDAQ 4,769.7260 -47.8680 -0.99%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs