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.For instance, "All the bad money managers I know have hundreds of positions," he says.
"All the good ones have a few that they know inside out and like on the way down."
Rule 11: Don't Own Too Many Stocks.
"I never will buy a stock without first taking one off. That's a great discipline and one you should adopt, pronto," suggests Cramer.
That's why he and his team keep the AAP Portfolio at around 30 stocks they can properly manage.
For more on that, listen to Rule #11 above and then found out when he lost the most money as a hedge fund manager.
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: