Jim Cramer’s 5 Golden Investment Rules: The Host of Mad Money

Jim Cramer is Host of CNBC’s Mad Money (born 02, 10, 1955)

Jim Cramer is the commentator of Mad money finance program in an American television show. He is also chairman and co-founder of TheStreet.com. He shows the investors how to perform well in the stock market, through his valuable advice. In former, he was a manager of hedge fund.

During Philadelphia Phillies game, Jim Cramer was selling ice cream at Veterans stadium. He lived in New Jersey and studied in Springfield Township High School in Montgomery County. Then he received graduation BA from Harvard College. 

Jim Cramer started his carrier as a journalist with the Harvard crimson and became its president. Cramer worked few reporting jobs after completing his graduation from Harvard College. In this time he lost all of his by the robber. He lived out of his car for nine month. ‘I was living hand to mouth, and people would take me in now and then so I could get a shower, change, get a good night’s sleep,’ he explained.” Within six month he came back to Goldman Sachs and then he founded his own hedge fund and MainStreet.com. He is the host of CNBC’s ‘Mad Money. There are very few people in America who has overcome his own poverty as Jim Cramer did.

Jim Cramer was a student of law school, during this time he invested money in the stock market and made money $500,000 to $150,000 within next two years. It helped him to get employment as a stockbroker in Goldman Sachs. In 1987, his success in this job influenced him to found his personal hedge fund. Now Jim Cramer is working as a commentator in television of Mad money finance program in CNBC. It first started in 2005. Mad money program educates investors to create better investors.

Cramer’s Suggestions: How to Become a Great Investors?

There are many people who have much money to invest or there are some people who invest money but can’t able to make a profit. Sometimes investors thinks what place will be proper for investing and they become hesitate to invest. Finally they can’t take correct decisions. To reach investment goals, and to become great investors, Jim Cramer offers 5 important investing rules. If investors follow Cramer’s investing rules they will get help in any circumstance and investors will be able to maintain the losses. With the help of his own life experience Jim Cramer gives these suggestions.

# 1: “Don’t dig in your heels when you’re wrong”

Cramer’s first rule is chance mind with the conditions of stock market. If you make mistakes and losses in a project, don’t wait for gain profit from this project and don’t be passionate. Actually he wants to say that time is very valuable, don’t waste time. In this time you can invest in others project and make profit. He says, it will take more time to get profit from this project and making profit in new project will take less time. It is very difficult to chance mind but it will make you a great investor.

# 2: “Price matters”
Most of the people want to buy the stock that price has decreases or low. They want to make more profit to buy low rate stock but they don’t know it is very wrong decisions and they don’t know it is most important step for investing in a project.

Jim Cramer’s suggested not to invest and that is not suitable stock to invest as this Stock price is decreasing. He find many distance between low stock and high stock. The low stock will take much time than the high stock to get profit. When a campy stock price be constant in a certain level and the company are trying to overcome the situation it will be investable. 

Cramer suggested investors should invest more to buy the better company’s stock as it will give you more profit. He also suggested if you assume a company’s death be sure about the probability for becoming bankruptcy or not. Before occur bankruptcy invest others stock.

# 3: “Don’t take your cue from an inferior company”
If a company fall into bad situation and told that this section in all company is worst. Remember that, it’s not correct for others company. Jim Cramer also said that if any sector blame another sector for their bad performance, don’t believe this.

# 4: “Don’t believe the hype”
If a company advertises more and more about its best position don’t believe this. If a company’s quarterly reports show that, the company’s earnings per shares are greater than expected return of Wall Street. The every newspaper explained this as a surprising result. There are many different between the company’s professionals in quarterly impresses and the newspapers surprising headline. The newspapers writer doesn’t show the different between the high quality surprise and low quality surprise. The more than expected return create the high quality upside surprise.
On the other hand the low quality surprise denoted that the company has a good base. The company chance their management system such as bought back their share. Wall Street only consider that more sales than expected.

# 5: “Be critical of commentary”
You must have to be careful about television discussion about any company’s market status. Generally we think that the television commentators are saying truth. Don’t believe this always remember that you are buyer of stock, so they are trying to influence you by their presentation. Some people seem as the want help us but you remember that you need not help from any kinds of media. The television commentators recommended a stock people think that its own so he praise this company’s stock that means not it is better. But nobody noticed that they are criticizing the market and tying to hit stock down so that people by them in a low price. Think always take a step think what is the television commentators are saying or you are reading from print.
Totally your thinking is most important than the commentators or a printed papers.
Source: http://www.cnbc.com/id/48817988/Cramer039s_5_Rules_For_Becoming_a_Bet