Jim Cramer is crazy. On his show, Jim Cramer mad money, he jumps about and screams like a crazy guy.
But the investments he picked last year earned 12% compared to 6% average for the market by some measures, so maybe he is not so crazy after all.
A lot of investors love Jim Cramer mad money shows on CNBC that they like to watch it each week.
While the world was spinning out of control, and the market was spinning straight down the toilet, investors were panicking and Cramer was one of the few voices who could be heard above the chaos and people listened to him.
Jim Cramer mad money picks end to be aggressive. They plan for the market to keep doing what it is doing. In other words, if a stock has started going up, Cramer wants to buy and ride it up.
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 market are going badly, stocks can reverse direction in a hurry and this will make them go badly quickly too.
One big problem Cramer has is when he interviews executives; he will normally recommend that you buy their stock.
My advice about what stocks to pick is actually be gained from his shows, Jim Cramer mad money, not his recommends buying the stock of those executives.
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.
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.