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.
Take corrections. Most people act as if corrections are total shockers, the type of thing that never happens, says Cramer
Rule 14: Expect, Don't Fear Corrections
But they are coming. And you better prepare for them.
"To me, they are like the rain. I expect it to rain. I prepare for it...When it comes, I am ready. I have an umbrella and a coat or I stay indoors," says Cramer.
Of course, corrections happen at allegedly unexpected times.
So listen in as Cramer talks about his days at his hedge fund and what he's learned to prepare for those unexpected market downturns.
And don't forget, we are rolling out one-rule-a-day for the next 25 days! So stay tuned!
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And for more Investing Rules, watch these: