Jim Cramer Mad Money – What Is It?

by Anne Durrell

Jim Cramer is out of his mind. When you see his shows, he likes to screams and jump about like a mad man.

But last year he earned 12% compared to 6% average from investments he picked, so after all that proved he is not crazy at all.

Hundreds of thousands of investors watch Jim Cramer mad money on CNBC each week.

Jim Cramer was one of the few persons who can be followed and was listened by many people when the world was spinning out of control and the stock market was spinning down to the toilet and investors were panicking.

When a stock has started going up, Jim Cramer mad money likes to ride it up and buy. His shows plan for the market to keep doing what is doing, so his mad money picks end to be aggressive.

Usually Jim Cramer dump the stocks when it starts to fall before it falls further. His technique is not a bad at all when the market is not volatile and the swings are not move forward or more predictable.

But when things are going badly, they go badly quickly and stocks can reverse direction in a hurry.

One big problem Cramer has is when he interviews executives; he will normally recommend that you buy their stock.

If you’re wondering on what stocks to pick, the best advices can actually be gained from Jim Cramer mad money shows, not Cramer’s recommends on those executives stocks.

It is clear there will be a short term jump in price for those stocks after he recommends it, as many people will run out and buy these stocks.

If you are quick on the draw, meaning you already bought those stocks just before he recommends it to people, you can do just the opposite, ready to sell when he says “buy”, that way you can expect to do very well.

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