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If You Can't Lose,You're a Loser

Jul 29, 2014, By Barry Ritholtz

Lately, I have been hearing an interesting type of argument. It is a form of debate that is both disingenuous and dishonest. We will call this the “Can't Lose Argument,” or CLA. Worse than confirmation bias, it is a money-losing exercise in narcissism.

The CLA goes something like this: A data point will be mentioned, and no matter what the net change in that data -- up, down or neutral -- it is somehow bad for markets. Stocks, bonds, commodities, real estate, all are fair game for the CLA.

Let me share a few examples of it:...............................................

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If you aren't occasionally wrong, then you aren't trying hard enough or taking enough calculated risks. Having a method to verify when you are in error is a sound bit of trading advice.

Beware those who are never wrong.

http://www.bloombergview.com/articles/20...re-a-loser

It's called falling in love with your stock/ ideas. Thats why it is so important to know the basis of buying a stock so that when that basis change its time to reassess rather than change the tune but sing same song. Thats where the term perma-bear or perma-bull comes from. I always remember the old adage that even a stopped clock is right TWICE a day

I am always wary of people who never had a losing or wrong idea. Either they are dishonest or they have not gone through the baptism of fire yet. Either way they are probably not the best reference for ideas.