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Tuesday, August 09, 2005

Cramer's 'Mad Money' Recap: When to Speculate

There has been a lot of critisism about Jim Cramer lately, but I found an article, where he talked very reasonably. He calls attention to some really nice snippets about stock markets.

Cramer's 'Mad Money' Recap: When to Speculate

8/9/2005 7:02 PM EDT
Speculation is something that can keep investors interested and enthusiastic about their money, and it can even be necessary under the right circumstances, Jim Cramer said on CNBC's "Mad Money."

"I've got a long track record, and almost all of my biggest wins have come from pure speculation," he said. "You must learn how to do it right. You've got to know the rules before I give you permission to use the tools."

"We do not want to speculate on companies with bad balance sheets. You can speculate in the young companies and the ones with good balance sheets."

"Luck should not be part of the equation," he said, and he recommended against using margin for speculation.

Cramer also spoke about the importance of market bottoms, which are good buying opportunities if called correctly -- and of course that's the hard part. Don't rely on technical analysis alone, Cramer said, because fundamentals must also be considered. Clues to a market bottom include sentiment reaching very low levels and bulls capitulating and becoming bearish.

For the strategy to work its best, "you need to be right, when almost everybody else in the market is wrong," he said.
I agree with his last words about acting controversially to others. This is basically the old saying: Buy when there's blood in the street.

Read further: Cramer's 'Mad Money' Recap: When to Speculate


Anonymous PENNY STOCKS said...

Cramer knows his stuff alright.

12/03/2012 02:30:00 PM  

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