With stocks trading at or near all time highs, how can you protect your profits while still riding a wave that may have a great deal of energy left?
Of course, it's never a mistake to ring the register, but Jim Cramer would not stay out of the market for long. He believes there's more upside ahead. That is, unless the next shoe drops which is always a possibility. How do you navigate all that?
The "Mad Money" host believes the key to success in this market involves discipline. And he believes no discipline is more important than diversification.
"This is the single most important concept in investing," he said. "It's the key to avoiding enormous losses and making sure you can weather a storm."
The idea behind diversification is critical whether you own 5 stocks or 500. That is, diversification spreads out risk and therefore helps shareholders mitigate all kinds of developments, especially unexpected and negative developments.