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Commandment No. 9: Don't Trade Off Only the Headlines

 

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 "Ten Commandments of Trading." For more about the new book and to order it, click here. To learn his "Twenty-Five Rules of Investing," click here. Today, we present Cramer's ninth commandment. Read more about his trading commandments:

  1. Keep It a Trade
  2. First Loss Is Best
  3. Take Your Losses
  4. Trading Gains, Not Investment Losses
  5. Tips Are for Waiters
  6. No Sale? No Profit
  7. Control Your Losses
  8. Don't Fear That You'll Miss Anything


If I didn't know any better, I would think that headlines are written to pick off errant traders who don't know enough. Watch tonight, watch when Intel(INTC Quote) reports. I guarantee you that whatever headline is written for the competing wire services, it won't tell you what to do. If anything, it will throw you off the scent. ...

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