The biggest mistake Jim Cramer sees investors make is thinking they are supposed to be fully invested at all times.
Heck, even some money managers have told him that they are supposed to have all their money in stocks.
This is complete nonsense!
Having cash on hand when a market correction occurs is the key to protecting a portfolio, Cramer says. Sometimes the market will stink, and there is nothing to do but just sit in cash.
"In fact, one of the chief reasons that I outperformed pretty much every manager in the business during my 14-year run as a professional money manager is that there were substantial blocks of time when I was largely in cash," the "Mad Money" host said.