7 Rules of Investing

The host of CNBC’s MadMoney, Jim Cramer, says some of the simplest rules for investing are themost relevant.  Here are seven of his toptips to help today’s personal investors: 

1. Don’t own too many stocks worth less than $10.
2. Own around 10 stocks at any given time.
3. Diversify, not only in terms of companies andsectors, but also in terms of geography, strategy, strengths, and weaknesses.
4. Don’t undervalue the importance of dividends.
5. Don’t use market orders; use limited ordersinstead.
6. Never purchase stocks on margin.
7. Spend at least an hour a week keeping up withthe companies in your portfolio.

See Kurtis Droge, Jim Cramer’s 7 Basic Rules of Investing,Wall St. Cheat Sheet, Oct. 15, 2013.

Special thanks to Brian Cohan (Attorneyat Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to myattention.