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.
Like this textbook scenario: "The market gets crushed on a huge down day. People leave at the end of the day...because they can't take the pain...and they bolt after the annihilation."
It happens all the time.
"There's something basic and instinctive about panic -- about the desire to flee....but it can't make you a dime."
Rule 7: No One Makes a Dime by Panicking
While it may not be the time to sell, it actually may be a good time to buy.
So watch Cramer discuss Rule #7 above as he talks about what happened during the flash crash and other big market downturns, how you can set limit orders and why people are still calling him to thank him for his sound advice.
And don't for get, we are rolling one-rule-a-day for the next 25 days -- so stay tuned!
Sign up and watch Jim Cramer's 25 Rules For Investing here!
And for more of Cramer's Investing Rules, watch these:
- Jim Cramer's Investing Rule 6: Do Your Stock Homework
- Jim Cramer's Investing Rule #5: Diversify to Control Risk
- Jim Cramer's Investing Rule #4: Buy Damaged Stocks, Not Damaged Companies