Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

The Other Big Picture

Barry Ritholtz, writes The Big Picture, Essays and Effluvia in addition to being a columnist for RealMoney.com.

His recent column Apprenticed Investor: The Zen of Trading outlines 10 rules for trading:

  1. Have a Comprehensive Plan
  2. Expect to Be Wrong
  3. Predetermine Stops Before Opening Any Position
  4. Follow Discipline Religiously
  5. Keep Your Emotion In Check
  6. Take Responsibility
  7. Constantly Improve
  8. Change Is Constant
  9. Learn to Short/Hedge Stocks
  10. Understand Sector Strength and Market Trend

We often trade in relatively illiquid Canadian Resource stocks but that is no excuse to throw caution to the wind. Rather than playing the penny stock lottery roller coaster, try checking in with this rule list periodically and see where you might be able to improve.

There are times where selling an underperforming stock feels like I'm going out to the backyard to shoot my faithful dog, Bruce. After the fact I invariably feel better and open to new ideas. The good news is I still have my dog AND there are always be great opportunities out there if we choose to look for them.

Not Advice