Thursday, November 27, 2008

Jim Cramer's 25 Rules

1. Stay Diversified. 

2. Buy and sell slowly. 

3. Your first loss is your best loss. 

4. Dividends limit losses. 

5. Its always good to have some cash. 

6. Don't own too many volatile stocks. 

7. Know what you own. 

8. Don't own low-dollar stocks. 

9. Accounting irregularities equals sell. 

10. Stay away for two good quarters following an earnings shortfall. 

11. When your broker stops talking about a stock, it's time to sell. 

12. After a big run, get defensive. 

13. If a stock's dividend yield is twice that of Treasuries, sell it. 

14. If a company has a new CEO, stay away. 

15. Never turn a trade into an investment. 

16. Never sell "call" or "put" options. 

17. Never use margin. 

18. Never buy a stock at its all-time high. 

19. Play with the house's money. 

20. Keep your head clear. 

21. Contribute to retirement accounts throughout the year. 

22. Mutual funds should be diversified, too. 

23. Playing defense is crucial in volatile markets. 

24. Invest in stocks with buyback programs. 

25. Don't stop looking at your monthly statement. 


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