Drive Chain adjustment

Sorry for the all the newb questions, but this is my first bike, and it's older than I am.

The chain on my bike is pretty loose, and there isn't much room for adjustment via the chain tensioner from what I can see. What I'm wondering is if I can take a chain breaker, and take out a link or two, and put it back on the bike and still be ok? I'm not real crazy about the idea of a $100+ chain on my $50 bike, but I guess I will do what I have to do. I was hoping that I could get the rest of the (abbreviated Wisconsin) season out of this chain sans a couple links.

Thank you for all your help thus far, and the help that's sure to come in the future.

You can remove some of the links, but it sounds as if the chain has reached it's limit. It's always best to go ahead and replace both chain and both sprockets at the same time as the teeth might have wear. Try www.z1enterprises.com or www.chaparral-racing.com , but look around I sure you can find a good deal if your bike is stock.