Action Alerts Plus portfolio manager and TheStreet's founder Jim Cramer has learned a lot over his 30+ years of investing. So he created a list of 25 Rules for Investing that can help you avoid the novice pitfalls that even he fell into on occasion.
In the video above, he harkens back to the some of the mistakes he made.
"I got snookered in 2004 thinking that Nortel's accounting problems were a simple sell-off of a damaged stock," he laments. (Those issues were a part of a much larger issue with the company and the stock eventually was delisted in December, 2008)
Rule 4: Buy Damaged Stocks, Not Damaged Companies
But how do you know if there is something endemic wrong with the company and not just the stock?
Watch the video to find out!
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Watch More of Jim's Rules for Investing: