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.
And one of the mistakes he made was trying to support all of his stocks -- all of the time.
"He who defends everything defends nothing," he says.
Rule 9: Defend Some Stocks, Not All
"That's why I rank all my stocks AT ALL TIMES for my Action Alerts PLUS portfolio," says Cramer.
"I need to know which stocks I will defend when things get tough and which I will cut and use as sources of capital."
So watch Cramer talk about Rule #9 above -- and why you too should start to rank your holdings and know which ones to cut loose when the market gets hairy.
And don't forget, we are rolling out one-rule-a-day for the next 25 days! So stay tuned!
Sign up and watch Jim Cramer's 25 Rules For Investing here!
Watch More of Jim's Rules for Investing:
- Jim Cramer's Rule 1: Bulls Make Money, Bears Make Money, Pigs Get Slaughtered
- Jim Cramer's Investing Rule #2: It's OK to Pay Taxes
- Jim Cramer's Investing Rule #3: Don't Buy Stocks All at Once
- Jim Cramer's Investing Rule #4: Buy Damaged Stocks, Not Damaged Companies
- Jim Cramer's Investing Rule #5: Diversify to Control Risk