(This article was originally sent to Jim Cramer and members of CNBC Investing Club. Get the latest updates directly to your email subscribe here.)

Following the brutal start of 2015 for tech stocks, and the significant drawdown in high-quality names, it is hard to help but remind the Investing club of two key portfolio management principles that we apply for Charitable Trust.

Our first discipline is a simple one, and it’s a line that we repeat in our trade alerts:  Bulls make money, bears make money, and pigs get slaughtered. This discipline is put into practice when stocks rise between 5% and 10% in one day after receiving zero news.like Nucor yesterdayAfter a stock is sold, or after it has been on a long run.

Were we looking to trim, or something else? Marvell Tech (MRVL)We love… this past December at $92? Marvell Tech has a long history and so many opportunities in 5G, cloud and auto. This sale was difficult to reach.  MRVL rallied almost 30% in three trading sessions and we were forced to profit or risk being greedy. How about AMD (AMD)? Following the Investor Day, and the partnership with Meta Platforms announcements, share prices surged. AMD’s prospects were bright, however, the stock rose by 50% in the period October through November. compelling us to take some stock off the table. We also made gains in several stocks, including AbbVie (ABBV), Linde (LIN)Please see the following: Estee Lauder (EL) because their names were on the 52-week high list day after day.

Keep in mind that stock are sold and bought, not companies. Stocks can sometimes get too passionate about. The idea of buying stocks whose value is lower than the current price can be talked about by investors. However, this principle holds when stocks rise. You must not be willing to purchase a company of high quality when its price is low for no reason.

Was it possible to sell every product before the volatility of recent years? No. Of course not. In some ways, we have been like pigs. Nvidia (NVDA)We did not take any off our shoulders. Salesforce (CRM) because we thought their last quarter was not as bad as what the market reaction suggested. We believe that if we stick to the discipline of bulls making money and bears making money and pigs getting slaughtered, we’ll be able to lock in large gains long before the market changes. Then we can buy the stock back at a lower price with the money we raise.

However, you cannot limit the amount of stocks you own to those you’re up large. How do you deal with stocks that don’t work in the market?

We now move on to the second discipline. Your portfolio may end up with many losers if you don’t sell your winners. The AbbVies and Lindes can be cut and you won’t have enough to exit Estee Lauders. Wynn Resorts (WYNN) and PayPals (PYPL).

To protect against selling winners to fund losers, every once in a while, you must be willing to part with a stock that you are less enthusiastic about. For example, we have not been shy about selling Walmart  (WMT) at higher lower prices because we think there are better opportunities out there in the market. Be selective when looking for new opportunities. If you use your winnings cash to purchase the Teladocs and Docusigns of the world at ever-lower prices, it could lead to even more losses.

We are fortunate that we haven’t put good money after bad. Instead, we focus on companies that make stuff and do it well. You can see that our main focus was on healthcare and cyclicals such as energy in all our purchases since Thanksgiving.ChevronBanks (Morgan StanleyIndustries (Boeing  Honeywell).

Next, we will update you on where we stand today in relation to the market.

We are now looking to buy stocks after the brutal year of technology. These are the signals we are watching. Microsoft (MSFT) This is an important name to keep in mind because of its real earnings and large buyback. Analysts have recommended PayPal a lot this year. However, it was unable to maintain its gains before today. All indications are that Nvidia is having a strong quarter. And the semiconductors that we bought into enthusiasm? These semiconductors we bought into enthusiasm can be purchased to weaken because they were sold at much lower prices. Marvell Tech, which is one of the most rapidly-growing and earns real income, is at the top of our pecking list.

While we haven’t pulled the trigger yet on any stocks in tech, however, our team is looking closely at several stocks and monitoring pricing.

My Charitable Trust now has an official home at the CNBC Investing Club. This is where I share my market intelligence and every move that we have made for our portfolio. Action Alerts Plus has ceased to be affiliated with my writings and the Charitable Trust.

 You will be notified by Jim Cramer if you subscribe to CNBC Investing Club. Jim may then make a trade. Jim will wait 45 minutes to send a trade alert, before buying or selling stock from his charitable trust portfolio. Jim can wait up to 72 hours before trading a stock he mentioned on CNBC TV. See here for the investing disclaimer.

 Jim Cramer Charitable Trust has MRVL and AMD.