Understanding Jim Cramer Mad Money

Posted by admin | Uncategorized | Thursday 30 July 2009 11:38 pm

Jim Cramer is crazy. On his show, Jim Cramer mad money, he jumps about and screams like a crazy guy.

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.

A lot of investors love Jim Cramer mad money shows on CNBC that they like to watch it 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 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.

Conversely, if a stock starts to fall, Cramer wants to dump it before it falls further. This is not a bad technique when the market is less volatile and the swings are slower and more predictable.

But when market are going badly, stocks can reverse direction in a hurry and this will make them go badly quickly too.

On his shows, Jim Cramer mad money, it is not uncommon he recommends you to buy the stocks of the excecutives who were being interviewed by him. The executives who were being interviewed are usually those who have high dividend stocks only.

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 really doesn’t matter even if you want to take India stock market even you live in the US.

It is obvious that after he asked people to buy it, many people will buy these stocks, so there will be a short term jump in stock price.

So if you are quick on the draw and do just the opposite, ready to buy when he says “sell” and ready to sell on the margin when he says “buy” then you can expect to do quite well.

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