Explain Your Picks

Editor's note: As a special bonus to TheStreet.com readers, we will be running an updated version of Jim Cramer's "Twenty-Five Rules of Investing," from his latest book, Real Money: Sane Investing in an Insane World. Here's Rule 24.

One of the worst things that ever happened to stock picking was the Internet, because it took away one of the most important brakes on the process, one of the most important warning systems, which is talking to someone about a buy. Now you can, with a stroke of a key, buy the stock of Sirius(SIRI Quote) or Avaya(AV Quote) without ever having to explain to another human being why you are doing so.

This is why you should always:

Be able to explain your stock picks to someone else.

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