Saturday, August 8, 2015

CRAMER'S TWENTY -FIVE RULES FOR INVESTING :- SATURDAY THOUGHTS


Dear readers,

 Read this article, it may boost your investment skills. All credit goes to original author cramer.

ABOUT CRAMER

James J. "Jim" Cramer (born February 10, 1955) is an American television personality, former hedge fund manager, and best-selling author. Cramer is the host of CNBC's Mad Money and a co-founder and chairman of TheStreet.com, Inc.





Cramer's Twenty-five Rules for Investing



Rule 1: Bulls, Bears Make Money, Pigs Get Slaughtered

It's essential for all traders to know when to take some off the table. More

Rule 2: It's OK to Pay the Taxes

Stop fearing the tax man and start fearing the loss man because gains can be fleeting. More

Rule 3: Don't Buy All at Once

To maximize your profits, stage your buys, work your orders and try to get the best price over time. More

Rule 4: Buy Damaged Stocks, Not Damaged Companies

There are no refunds on Wall Street, so do your research and focus your trades on damaged stocks rather than companies. More

Rule 5: Diversify to Control Risk

If you control the downside and diversify your holdings, the upside will take care of itself. More

Rule 6: Do Your Stock Homework

Before you buy any stock, it's important to research all aspects of the company. More

Rule 7: No One Made a Dime by Panicking

There will always be a better time to leave the table, so it is best to avoid the fleeing masses. More

Rule 8: Buy Best-of-Breed Companies

Investing in the more expensive stock is invariably worth it because you get piece of mind. More

Rule 9: Defend Some Stocks, Not All

When trading gets tough, pick your favorite stocks and defend only those. More

Rule 10: Bad Buys Won't Become Takeovers

Bad companies never get bids, so it's the good fundamentals you need to focus on. More

Rule 11: Don't Own Too Many Names

It can be constraining, but it's better to have a few positions you know well and like. More

Rule 12: Cash Is for Winners

If you don't like the market or have anything compelling to buy, it's never wrong to go with cash. More

Rule 13: No Woulda, Shoulda, Couldas

This damaging emotion is destructive to the positive mindset needed to make investment decisions. More

Rule 14: Expect, Don't Fear Corrections

It is not always clear when a correction will strike, so expect and be prepared for one at all times. More

Rule 15: Don't Forget Bonds

It's important to watch more than stocks, and bonds are stocks' direct competition. More

Rule 16: Never Subsidize Losers With Winners

Any trader stuck in this position would do well to sell sinking stocks and wait a day. More

Rule 17: Check Hope at the Door

Hope is emotion, pure and simple, and trading is not a game of emotion. More

Rule 18: Be Flexible

Recognize and be open to the unexpected shifts in the market because business, by nature, is dynamic, not static. More

Rule 19: When the Chiefs Retreat, So Should You

High-level executives don't quit a company for personal reasons, so that is a sign something is wrong. More

Rule 20: Giving Up on Value Is a Sin

If you don't have patience, think about letting someone who does run your money. More

Rule 21: Be a TV Critic

Accept that what you hear on television is probably right, but no more than that. More

Rule 22: Wait 30 Days After Preannouncements

Preannouncements signal ongoing weakness, wait 30 days to see if anything has gotten better before you pull the trigger to buy. More

Rule 23: Beware of Wall Street Hype

Never underestimate the promotion machine because analysts get behind stocks and can keep them propelled in an up direction well beyond reason. More

Rule 24: Explain Your Picks

Buying stocks is a solitary event, too solitary in fact, so always make sure you can articulate your reasoning to someone else. More

Rule 25: There's Always a Bull Market

It's OK if you have to work hard to find it, just don't default to what's in bear mode because you are time-constrained or intellectually lazy. More


9 comments:

  1. Wonderful article on rules of investing,which many of us know but always forget to put in practice..

    ReplyDelete
  2. may I know your mail id, would like to talk regarding stock market investment. Also please add my id dineshengg@gmail.com to your valueablegems group to receive your tips.

    ReplyDelete
    Replies
    1. Always welcome stock related questions(mail id : valueablegems@gmail.com)

      Delete
  3. Hello sir
    Is this like 2000/2007 bubble in midcap/small??
    Evry stock going up and up..
    Plz share your view

    ReplyDelete
    Replies
    1. Poor fundamental stocks should correct.If you owned stock not giving earning matches to prices just sell it(if you think future growth is dim) caution always good for health and wealth.

      Delete
  4. Thank you sir
    Advice on dynamic products. .

    ReplyDelete
  5. Hello sir,

    what is ur view on arrow textiles and lawreshwar polymers?

    ReplyDelete
  6. Pls we can enter govind rubber after this qtr results

    ReplyDelete