Apprenticed Investor: Nothing Doing

Thursday, July 14, 2005 | 04:15 PM

Tscm_1The latest "Apprenticed Investor" column is up, and its titled (apropos of nothing in particular) Nothing Doing.

In it, we look at the problem of overtrading, and why many traders cannot simply do nothing. Its especially true for those thrill jockeys who trade less for investing and more for the buzz.

The accompanying podcast is here:

Here's an excerpt:

"Let's be blunt: There is something exhilarating, even thrilling, about trading. The adventure of putting a position on, the buzz of watching it rally -- it can be such a delight that it almost feels illicit.

Clearly there is a rush to trading, especially when the market is really hot. But if you are getting that excited by trading, then the odds are you have become far too emotionally involved in the trade.

This is a huge mistake.

Investing is serious business, with real dollars at stake. There are far cheaper, less dangerous ways to buy a thrill -- snorting cocaine or hang gliding comes to mind -- than trading and investing."

There's nothing wrong with having, say, 5% of your portfolio in a "mad money" account for more speculative trades or just to have "some skin in the game." But if you are trading to get your jollies, then you are not spending your money well.

So today, I'd like to talk about nothing; specifically, about doing nothing."

Sometimes, it pays to turn the old cliche on its head: Don't just do something, sit there!

Prior Apprenticed Investor columns can be found here.



Download: Nothing doing.mp3


Apprenticed Investor: Nothing Doing 
Real Money, 7/14/2005 10:22 AM EDT

Thursday, July 14, 2005 | 04:15 PM | Permalink | Comments (4) | TrackBack (1) add to | digg digg this! | technorati add to technorati | email email this post



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» Saving Money by Doing Nothing from Online Trading
Some weeks ago I published a post about overtrading (taken from Ivestor's Business Daily) as a common mistake made by a lot of traders and investors. There is another good article about this topic in column by Barry Ritholtz. [Read More]

Tracked on Jul 15, 2005 2:03:41 AM


most want action


not many people can sit and wait

then act on a plan

then stick with the plan

shortorlong dot com

understanding markets

one must have a plan with fixed rules
& patience, & DISCIPLINE, to be able to implement ones plan

Posted by: duncan robertson | Jul 14, 2005 7:36:02 PM

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