In his bestseller Jim Cramer's Real Money: Sane Investing in an Insane World, the author lists ten commandments of trading and 25 investing rules to live by. Among the highlights:
Tips are for waiters, not investors. Be careful when someone offers you advice about a stock. If the tipster really knows exactly what will happen, then he or she is probably guilty of insider trading -- and you may be, too, if you take the tip. And if the person doesn't really know what will happen, then he or she should just shut up.
| Row 0 - Cell 0 | The Manic Universe of Jim Cramer |
| Row 1 - Cell 0 | Slide Show: The Faces of Cramer |
Buy and do your homework, don't buy and hold. Know what you own and be able to explain it to someone else. Spend one hour per week studying every stock you own. Buying and holding is much riskier than it sounds; the strategy is often an excuse for laziness, ignorance and neglect.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Never turn a trade into an investment. Make a trade because you believe a catalyst will move the stock. If the catalyst doesn't materialize, sell.
Be humble; don't buy all at once. Recognize that the world is unpredictable. Start with a small position and then hope the stock goes down so you can buy more at a better price.
Don't trade on headlines. The press's initial interpretation is often wrong. This is particularly true of earnings reports. News services are in a rush to beat their rivals. Read the whole news release. Listen to the conference call. Do your homework.
Bulls and bears make money; pigs get slaughtered. Cramer endlessly repeats this saw, which most amateurs routinely disregard. When you have a big winner, take some money off the table.
Don't panic. You may experience temporary emotional relief by selling at the point of maximum pessimism -- but you almost never get a good price. The price of the stock will be higher a day or a week later. That's a better time to sell, if that's what you want to do.
No woulda shoulda coulda. As Cramer writes, "to second-guess decisions is to put yourself in a loser mind-set." Amateurs do this all the time, and as a result, they're more likely to miss the next big opportunity because they're so consumed by regret over what they did or didn't do.
-
Stocks Slip to Start Fed Week: Stock Market TodayWhile a rate cut is widely expected this week, uncertainty is building around the Fed's future plans for monetary policy.
-
December Fed Meeting: Live Updates and CommentaryThe December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
This Is Why Investors Shouldn't Romanticize BitcoinInvestors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
Best Banks for High-Net-Worth Clientswealth management These banks welcome customers who keep high balances in deposit and investment accounts, showering them with fee breaks and access to financial-planning services.
-
Stock Market Holidays in 2025: NYSE, NASDAQ and Wall Street HolidaysMarkets When are the stock market holidays? Here, we look at which days the NYSE, Nasdaq and bond markets are off in 2025.
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?Markets When does the market open? While the stock market has regular hours, trading doesn't necessarily stop when the major exchanges close.
-
Bogleheads Stay the CourseBears and market volatility don’t scare these die-hard Vanguard investors.
-
The Current I-Bond Rate Is Mildly Attractive. Here's Why.Investing for Income The current I-bond rate is active until April 2026 and presents an attractive value, if not as attractive as in the recent past.
-
What Are I-Bonds? Inflation Made Them Popular. What Now?savings bonds Inflation has made Series I savings bonds, known as I-bonds, enormously popular with risk-averse investors. How do they work?
-
This New Sustainable ETF’s Pitch? Give Back Profits.investing Newday’s ETF partners with UNICEF and other groups.
-
As the Market Falls, New Retirees Need a Planretirement If you’re in the early stages of your retirement, you’re likely in a rough spot watching your portfolio shrink. We have some strategies to make the best of things.
