Wall Street 2 Wisconsin Trimester Three Eighth Grade Interpretation of

Cramer, Jim.

Ten Commandments of Trading

Simon & Schuster

Copyright 2005

1.  Never turn a trade into an investment.

The general idea of this commandment is don't keep the stock forever.

Once you have made money on the stock, don't keep it and expect to make more money because it could go down.

One question our group has for the author is what is a good way to get into the habit of to never turn a trade into an investment?

2.  Your first loss is your best loss.

the point of this commandment is to say that if you take a loss move on from it and learn from your mistake. Also that you should get over your lose quickly and move on. It affects our strategy because if we think we have a good stock then we won't want to sell it which could make us lose even more money$$. I don't need to ask the author any questions because I understand what he means and have to concerns.

3.  It’s okay to take a loss when you already have

1.Don't stay in a stock if you have lost big amounts of money already because it hurts long term performances.

2. It effects me because I lost money on sears holdings, but I didn't trade it and it eventually made me lots of money.

2.This helps me because I've lost a lot of money on a stock then ended up loosing more but after reading this I will sell those stocks that loose me a lot.

3. I personally don't have any questions because he really stated it well.

4. Why isn't it good to keep a stock you have lost money on because there's a good possibility the stock will go back up.

4.  Never turn a trading gain into an investment loss.

You could gain a huge profit but you might give it back.

You shouldn't hold onto your stocks if they are making you money stay with it a bit then leave the stock.

We don't have any questions for the author.

Never stay with a stock for to long.

5.  Tips are for waiters.

The commandment means that tips usually don't work. For the most part, this commandment is focused on searching for takeovers and making a large profit on them. There are two reasons for someone to say a tip. One is if he/she is an insider, but insiders giving news about companies is illegal. The other is if someone is in a bad spot and they need to spread a rumor for one of their rough stocks to go up. Overall, the commandment states that if you hear a tip, stay away from it because tips are bad news in the stock market.  Also some people could try to just make you lose money and the bad thing is is that you probaly beloved them don't believe anything that anyone says cause you never know if it is right or wrong go off of what you read and researched. I sometimes trade off tips so this affects me a little bit. I don't have any questions about the article.

6.  You don’t have a profit until you sell.

This commandment is saying that you're only going to profit from your stocks if you sell the stock you have made a gain on. This doesn't really apply to me because I don't sell my stocks that often, if they're at a gain I just keep them. I don't have any questions for the author.

 This commandment says you should sell after you have made a huge gain because you will only profit and it takes away the chance of it dropping and you loosening all your gains.

7.  Control losses; winners take care of themselves.

1. You don't want to just keep losing money.  If you do end up losing money in the beginning, set stop orders in the future so you can save money

2. This effects my investment stratagey because I will be more cautious with my investing and will create more stop orders.

3. What are some other ways to make sure you don't lose too much money in the stock market?  Is there something else besides stop orders

4.  It seems kind of hard to focus on not losing money and trying to gain money at the same time.

8.  Don’t fear missing anything.

Don't play catch up with your stocks.

it could affect you because if u play catch up u could loose money so I won't play catch up.

A question for the author is why is this a commandments.

We have no more questions or comments

9.  Don’t trade headlines.

WhenYou want to trade  and you see a very tempting title about a stock you automatically think its a good stock, and then maybe you  won't even research the stock because the media said it was good. This commandment doesn't effect my investing stratigies because I don't watch the news or read articles that much and if I do find a good article about a stock I research the company.

You have to be patient on the stock based on the headlines, you have to read into the news. This affects my strategy because when I see a good headline I never read into the headline, I would just buy it but now I will read into the headline. I currently have no questions for Mr.Cramer.

10.  Don’t trade flow.

people should not take chances by buying a stock that tons of people are buying at that particular moment. This would affect your strategy by being more cautious in t buy.what stock you will invest in. No questions for the author.