Editor's note: Jim Cramer's new book, Real Money: Sane Investing in an Insane World
, is available in selected bookstores now. As a special bonus to RealMoney
readers, we will be running Cramer's "Twenty-Five Rules of Investing." For more about the new book and to order it,
When the markets are hard and unrelenting, as this one has become this year, it's important to remember an adage that's well-suited for a battlefield plan but is just as valuable for a portfolio plan:
He who defends everything defends nothing.When the market's flying and many stocks are in a bullish mode, it really doesn't matter how much you have on, or how many positions you have. The more exposure the better. But when things get tougher, you have to recognize that many stocks that you bought for better times may not be in good enough shape to rally. You can't own everything you would like to own. For example, you may have been playing the chemical sector with Eastman Chemical (EMN - Get Report), Dow Chemical (DOW - Get Report) and DuPont (DD - Get Report) because you saw the demand from China. Suddenly, General Motors (GM - Get Report) "