Things you need to balance that it can be hard to keep track of everything you need to do and a lot is much more important than day to day action. Without the right discipline, frame work, dare i say philosop philosophy, youll get yourself into trouble but i also know that big picture Financial Advice cob haan be ha process. A lot of it seems down right contradictory to most people we tell you to have convictions and stick with the companies you believe in and change your mind on the dime. You need to be cautious because its so dangerous out there but you also need to be ready to pounce on opportunities when they present themselves. You need to be skeptical but also need to know when to suspend your belief, your disbelief. You need to avoid chasing stocks that have run too much, but you also shouldnt care too much where a stock is coming from if you believe its headed higher you know the rules it doesnt matter where a stock is coming from but where its headed to. Believe me, i get it i get it take all my rules literally and youre going to be running around in circles tearing your hair out how do you think i went bull tonight well take a step back and put this discipline stuff into perspective if you pick your own stocks, the thing you really need above Everything Else is good judgment good investing judgement is not anything someone can teach you in an hour of television or a year of television for that matter thats why i try to help you build good habits and better ways to think about individual stocks and the whole market. The tools you need to develop your own judgment. My best mr. Feprofessors focuse teaching how to think, not what to think ive always tried to take muy cu from them. The problem is, thats a heck of a lot to process so lets try to put it in context. First and foremost, when youre managing youre own money, before any other consideration you need to know yourself. Ive said this before, ill keep saying it because its important. You cant know which stocks to buy if you havent taken the time to consider your own personal objectives and i cant decide them for you. You need to build your wealth to make a major lifechanging purchase like your home. Do you have money to burn youre willing to take risk on more speculative propositions those are different mind sets. The truth is, there is no one side fits all and anybody that tells you differently is dangerously misinformed or flat out lying to you probably in order to sell you something, but far too often people invest in the stock market with the simple goal of making some money. Yeah, all we want to do, want to make money, everybody wants to make money but how quickly do you want that return are you willing to risk to get there . How much can you even afford to risk in the first place . These are really important questions that you need to know before you start and because that will clearly define a goal. You have no way to determine which stocks you should be buying in other words, your 401 k or ira do not exist in a vacuum if youre trying to save up for retirement, netflix might be the most appropriate place to put your capital and you have a descentsized nest egg and you want appreciation, netflix and the rest of its fast growing facebook, amazon, google, alphabet, they seem lets just say they start to look more attractive given the mind set. In short, before you can start making judgments about individual stocks, you have to figure out what your own internal yard will look like so you can find stocks suitable to your particular needs let me put it another way. If you want to fly across the pacific ocean, you do it in an airport. You dont fly in a ford fiesta if you want to pick up your kids from school, taxing down main street in a 747 would be impractical and would be much better with the ford fiesta. How about if youre renovating your house and you need to go to home depot for limber and paint, the ford fiesta is too small you wont fit it in a packed home depot parking lot. The pickup might be perfect. The same way with stocks when youre saving for retirement, you want lowrisk holdings with a slow and steady return for those of you that dont have time to search the stocks, you cant go wrong with a basic lowcost s p 500 index fund that tries to mimic the performance of the broader market. I recommended index funds endlessly because they are phenomenal at their best they help the incredible engine of Wealth Creation that is the u. S. Stock market america remains america is a growing economy and business friendly to the developed world and when you buy an s p 500, youre betting on the longterm performance. You know what youre betting on . Progress historically thats a very good bet. Thats why i always say that you need to invest your first 10,000 in an index fund dont bother to try to pick individual stocks until you have more money than that again, first 10,000 index fund. If youre looking to make slow and steady money over a period of decades, thats a retirement investment and individual stocks like consistent steady companies with big dividends because of compounding. A 4 yield may not sound spectacular but if the stock goes nowhere, the 4 annual return will double the money in 18 years thanks to the magic of compounding. Of course, not every investor is trying to fund their retirement. Even if you are, that may not be the only thing you want to do with your savings. This is another important point. You can have multiple objectives and multiple pools of money. I like to break things up into the retirement portfolio and the extra money you dont need to support yourself after latestage capitalism has ground you down and youre no longer able to work that portfolio is where but mighty people in the portfolio will be less important than the retirement because its not just retire the if you went to pay for a house, you want to send your kids to college, take a more conservative approach to managing the money whatever account you put it in, your strategy for colleague tuition savings or future house savings should look more like your retirement portfolio and please and the rabbit hole trust me, i get it when you get excited stock, you want to dive in. Ive been there before first, you need to consider what youre trying to get out of the market the answer to that question is not going to be the same for everyone but Everything Else stems from it. You cant make judgments about stocks until you know what characteristics you actually value. Lets go to paul in texas. Paul caller booyah, jim. Booyah, paul. Caller ive noticed companies, a lot of them will exceed on one and miss on the other in reference to revenue and earnings per share, so as a shareholder in the companies im looking for, if they are going to exceed one and miss one, would it be more important for them to exceed on revenue or would it be more important for them to exceed on earnings per share . Holy cow, what a great question because ive actually done a huge amount of research and thank you, paul, for asking. Its Revenue Growth. We want to see pure Revenue Growth that means that there is demand for the product. The earnings per share are manufactured by tax rate and buying stock back. Okay no advice sell always consider what youre trying to get out of the market before you dive into a stock on mad money today help you with the flexibility im talking about. Ill reveal the back bends you should be doing to get your portfolio in order and feeling about the stock fix . Ill tell you why its time to snap out of it and how the late great maya angelou offered some of the best investing advice ive ever heard. So stick with cramer. Dont miss a second of mad money. Follow jimcramer on twitter, send an email to madmoney cnbc. Com or give us a call at 1800743cnbc miss something head to mad money dot cnbc. Com osamah cancer is. The ugliest disease mankind has ever faced. henry i thought it was unfair. When when you hear those words that you get diagnosed with cancer. osamah successfully treating it still remains one of the most enormous challenges facing us today. We realized that, if we developed the technology that could take 2dimensional patient imaging and convert it into 3dimensional holographic renderings, we could enable surgeons to dissect around the cancer so we can precisely remove it. When we first started, we felt like this might just not be possible because Computing Power just wasnt there, but verizon 5g ultra wideband will give us the ability to do this. We wont rest until we see this technology being able to change lives. Regular viewers know ive got a lot of rules the result of more than 30 years in the Money Management business versus broker and Hedge Fund Manager and commentator. I got rules for investing rules for trading and rules what do in a rally and picking winners and avoiding losers. That can be a lot to take in as i mentioned before, the point of all these rules is to help you learn from my mistakes and develop your own judgment. I just explained why you need to have a clear understanding of your own objectives before you start buying stocks. Something more focused than merely trying to make some money. Lets pretend youve done some selfreflection and you know what youre trying to accomplish know you can start buying individual stocks enough to fill out a diversefied Portfolio Five to ten names, right . Hold up. Before you buy anything, i need you to do one more thing first, you have to do the homework ive covered this before ill give you a quick version now. If you invest in a company, you need to know how the company does and how it makes the money and how much the internet made this process easier when i first started the show, this is adele lig delight you can go online and read the filings and listen to or read the transcripts of the Conference Calls which i regard as the best way to get familiar with the business and the key met tricks that will drive the stock. Feel free to reach journalism and opinions from both companies itself and the stock trades and written i dont know, a half dozen books about how to do the homework the Actual Research is just part of doing the homework. After youve learned what you can and developed a thesis, a theory about why you think the stock is set higher, there is one final step you have to explain that theory to another living, breathing human being. It doesnt have to be a professional you can talk to your mom, your kids, a friend the important thing is you put your thesis into words that you can basically comprehend it yourself layout why you want to buy this and why its headed higher if there are major holes in your theory or rely on wishful thinking, even a mature teenager will be able to catch that once youve done that, though, then you are ready to pull the trigger. For those of you tuning me out because you cant stand to hear another word about homework, im done thats it. Thats all i say about that process preparing to buy a stock because tonight im trying to focus on the bigger picture. Lets fast forward once youve done the homework, you can build a diverse versifi Portfolio Five to ten stocks the idea is you should be able to do this in your spare time, not that youll turn Money Management into a second or third job. Have so many stocks for action alerts which you can follow along and subscribe. I got research assistance. Youre doing it yourself lets assume you own shares in companies you believe in you have a thesis for each one there is no sec tar ovtor over p which means you have distinct industries with diversification. In short, you have what is an ideal portfolio. Whats the most important thing for you to keep in mind . Above and beyond, the perfect portfolio wont stay perfect for long those five to ten stocks you thought were winners, unless youre certainly lucky, not all of them will stay winners. Some will be losers. Some will do nothing some of the companies that you liked best will disappoint you what can i say the game is full of heartbreak which brings me to my next rule. Always please, please try to stay flexible. You have to be flexible because business by its very nature is dynamic, not static. Things do change and markets change and new competitors under cut existing players to take market share and start executing poorly and weve seenthat time and again. Customers cancel orders. Unforeseen events happen that hurt business or make some category of stocks seem less attractive to the Money Managers who dominate the market. When a story of a company you own shares in, you have to be willing to acknowledge things are different. The reason you gave for buying a stock is no longer valid, this is why you need to explain your picks to another person so you can recognize when your idea is unworkable for decades experts peddle the idea when you buy a stock, you need to be prepared to hold on to it until the death of the universe how many times have you heard someone say buy and hold buy and hold i got to tell you thats nonsense dont get me wrong i would love to buy a stock and hold it from here to eternity because the story pans out and the darn thing keeps going higher at the story doesnt pan out or after a long time, this are big changes in the industry, you got to be willing to sell. At least sell some thats why i always tell you its buy and homework, not buy and hold i wish they would adopt buy and homework we would save people a lot of money. I bring this up because people hate, hate, hate admit when they made a mistake they hate selling anything because they are worried about taxes but once we make up our minds things are great, you cant afford to fall in love with the stock when you buy shares in publicly traded company, youre not joining thestock in holy matrimony and dont swear to stick with it in sickness and health and richer or poorer. Acknowledge when something changed. If you buy a stock because you believe the Underlying Company will take a ton of market share and fails to do so, dont move the goalpost on yourself dont search for reasons to hang on just get out of there. You must be willing to recognize that companies can take a turn for the worst. Managements headacmake mistakes. Ceo make bad errors every day. Lets pick one lets pick bed, bath and beyond. You may know that. Spend 5. 4 million buying from 2013 to 2017 and no fate attempt to boost earnings per share by shrinking the denominator but it didnt work. The company kept losing share to competitors like amazon. By the summer ocf 2018, there wa 2. 7 billion they spend twice that amount on the buy back if they put that money in a mattress, the company would be worth twice as much. You know what their mistake was . The guys running bed bath and beyond werent flexible. They kept buying back in the mistake and belief it would help, dont make the same error. When something goes wrong with the company you own, you are ready to stop hoping and start selling. Listen, being unwilling to recognize the term for the worst as bad as it might be, almost always seems to lead to much larger losses than youve already accrued. The bottom line, lets bring it together before you buy a stock, do homework and come up with the thesis a reason why you think that stock is headed higher, once you own it, please stay flexible if your thesis doesnt play out, sell the darn stock. Dont keep bashing your head against the wall recognize that things dont always go your way and then. Sell, sell. Move on. Liam in massachusetts. Caller booyah, jim. Booyah. Caller i had a quick question index funds sure. Caller you say with certain stocks, buy them at certain times like monthly or quarterly or at a good price you say to purchase 10,000. What im trying to do is make it so you dont necessarily come in at once a lot of people put the money to work i like to space things out and catch, when you get a real downtu downturn, if you put your money in before then you cant take advantage of it. Thats why i like to be flexible mike in texas, mike . Caller hi, jim, thanks for taking my call. Of course caller jim, id like to own some individual names in the tech space but i find that the prices of these stocks are just too expensive so ive started looking at etfs and mutual funds as an affordable ware to gain exposure and id really like to hear what your thoughts are on the matter what do you think . One of the things i dont like, they may be buying the same stocks you think are too pricey thats what your doing, the same deal you have to decide that the market is too rich or the group is too ruich and not to buy or f course, say im going to take a longterm view and not game it and maybe all at once but space out your buys. Matthew in arizona caller hey, jim, this is matt, how is it going . Well. How about you . Caller good, couldnt be better i got a thing for you. Is it a good idea to invest in the government if so, should it be short term or longterm investment . Cash is short term and longer term you want to take advantage of higher rates and get in there and use the power of compounding. Ator who is older should think of treasury you need to take on more risk, not less got your whole life to make up the money if you lose it before you own a stock, come up with a thesis why you think its headed higher and once you own it, stay flexible. Much more mad money ahead. There is not crying in investing. Why its time to take emotions out when it comes time to pick stocks and how maya angelou gave me some of the best Investment Advice ive heard and i say this always a bull market somewhere every night, right tonight im telling you where to find it. Stick with cramer. This is the couple who wanted to get away who used expedia to book the Vacation Rental which led to the discovery that sometimes a little down time can lift you right up. Expedia. Everything you need to go. Tonight, were zooming out and talking about the big picture. The stuff you have to do to manage your money in the stock market before i get back into it, let me say if you dont feel like reflecting on what you need from the stock market, if you dont want to do the homework, if you dont want to watch the under lying come opinion knees and give up on the stocks when something goes wrong, nobody is forcing you to do that there is no gun to your head its okay if stock picking is not for you. Thats why van guard invented index funds. So if youre going to play the stock market, i use the word play loosely if youre going to invest in it, then you should put in the effort to do it right. Dont you think . I think stocks are the greatest engine of Wealth Creation in history and you can harness that and make it work for you if you know what youre doing all right . A lot of this comes down to discipline the stuff ive been talking about all night but there is another important component. Call it the emotional side of the equation you need the right attitude toward the market because without the right attitude, stocks will break you. I mean, there is a brutal game and you need to make sure you have the right head space to play it. I cannot stress this enough. For many of you managing emotions will be the hardest part than investing, harder than picking winners and identifying trends and knowing when to cut your losses. Why . Because the market is harsh. At times owning stocks can feel like being in an abusive relationship but we keep coming back because longterm it is a great way to try to make money the thing is, unless you can perfectly predict the future, youre going to make lots and lots of mistakes its inevitable. When mistakes lose you money, that can be tough to handle. You need the patience, the patience of the dalai lama to not get upset when you buy a stock and it falls off a cliff imagine what it was like for me before i mellowed out. I was the opposite of the dalai lama when i got something wrong, i would flip out you did not want to be around me on a down day especially if i was way too long i can tell you from experience, this is not a productive attitude if you did read confession of a street addict you would know the attitude i was hell to live with. I know better than anybody you need to remain calm because constantly getting mad at yourself is not sustainable. Youll run out of patience and giving up on the asset class im not telling you to be the dalai lama or a Buddhist Monk to be a good investor its okay to get mad or sad when the market punishes you with its behavior i still do if my stock gets hit, i feel awful. I do i cant get it out of my system but you know what . I have to. You cant afford to punish yourself the market is brutal enough on its own. In other words, get your head on straight your head matters in this game you need to have it on right every day if you spot opportunities. Yet so many of us approach the market with an inferior attitude and state of mind. Our heads are clouded by negative thoughts that throw us off target making the us do the wrong thing. Youll be in the wrong frame of mind so let me be your stock market therapist for a moment there are a lot of harmful reoccurring thoughts you can have that will mess with your judgment but the worst of the worst, when you think to yourself if only, if only as in if only i acted sooner on electronic cards or if only i stayed short i could have made a fortune. Dont get hung up on that. Dont get hung up on the would have, should have, coulds have this is wasted damaging emotion were talking about. It destructive to the positive sipsychology you need. For a long time, i took it to an extreme and sit and be memorized but things i got wrong and obsess over and over and over again. It wouldnt just be over i can put it out of my head in a couple hours im talking about days on end. Not anymore. I dont do that. Took me a long time to learn but eve eventually, i was able to see how playing the would have, could have, should have game could be if youre an emotional guy, you need to trick yourself in a pattern of thought i had to build in all sorts of methods of tricking my mind to not play the game removing the stock from my desktop and mobile stock list going in, all my skin taking it off. Okay you look at it every day and scroll down. Just clear it out. Buy it back but dont tell me what you could have done or should have done you didnt whether you walked into a big loss or missed out on a big game, its irrelevant. Stop beating yourself up for heaven sake. Bottom line, the stock market can be punishing enough. You dont need to make things harder dont play the if only game. If you need help curving this kind of destructive thinking, go to that extreme. Take the stocks off your monitor or portfolio watch, off your cell phone youll be surprised how much better your decisionmaking becomes when you stop the would have, should have, coulds have devin in florida, devin . Caller hey, jim, how is it going . Real good how about you, devin caller good. Good. What do you got caller all right im 25 years old and maxes out a roth ira and i know you always suggested invest income lowcost index if you believfunds. Right caller should i be 100 in index funds or multiple infectiindex funds to build a diversified portfolio . You should put the preponderance in an s p 500 and after that pick one or two i dont want you to be mutual fund to mutual fund and a couple of others. Maybe you like health care, maybe you like tech. That would be my voice michael in california, michael caller hey, jim, thank you for taking my call. Of course. Caller i had a question about 401 k plans, my compan just put out their 401 k plan and being a novembst, what percentage of my paycheck would be a good starting amount to contribute. Whatever the max youre allowed because what happens is that this if you use the power of time, the power of compounding, you will have so much but you got to put it all in and i always advice people take the max take the max take the max enough with the would have, should have, could have. Dont play the if only game. Youll be surprised how much better your Decision Making comes once you stop that much more ahead. I see your true colors shining through. Its not just a great song, its investment wisdom. Ill tell you why. Im helping you find the bull market no matter where youre hindiding and im answerg the questions you send on twitter. Stay with cramer so. How are you feeling on a scale of one to five . Wait. One to five . When it comes to feelings, its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry, clive actually, really angry. Thank you. And seat 36b angry. Youre clive owen. And youre barefoot. Yeah. Theres also apprehension. Regret. Relief. Oh and theres empathy. Ah, i got this in zurich actually, whats the opposite of empathy . But what if your business could understand what your customers are feeling. And then do something about it. You can turn disappointment into gratitude. Clive, you got to try this. I cant im working. Turn problems into opportunities. Thanks drone. Change the future of your business change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. You mighyour joints. Ng for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally discovered in jellyfish, prevagen has been shown in Clinical Trials to improve shortterm memory. Prevagen. Healthier brain. Better life. Let me give you a piece of advice that would have saved me a lot of cash and more heartache back when i was running money professionally but didnt know it this is some genuine sage investing wisdom from the lake great maya angelou when someone shows you who they are, believe them the first time i know she wasnt actually talking about publicly traded companies but man, if the shoe fits, wear it. Ive been trying to hammer home investing and this is essential. When some Company Shows you who they are, believe them the first time when a ceo tells you business is bad, take their word for it. Dont try to make excuses. Dont bend over backwards finding justification so you can keep owning the stock of a company thats not delivering. Get the heck out at least until the smoke clears and you can better assess the damage the better i do for my charitable trust, its because of this rule, the worse i do, well, you know what im talking about. Let me read you the rest of the maya angelou quote because there is a variable insight in here. She continues people know themselves much better than you do thats why its important to stop expecting them to be something other than who they are. All right. Same thing holds true in the corporate world. Companies executives are almost always going to know the business better than you will unless they are being ridiculously neglect they have access to information you dont. They can spend 80 hours or more investing money fulltime time, there literally arent enough hours in the day to devote half of that time to a single stock thats why its so important to listen to what the ceos and cfos have to say on the Conference Call or come visiting on the show or seven someone elses show high level executives, they are your best resource i wouldnt have them on if i didnt think that. Doesnt get me wrong, you cant just take everything that comes out f aof a ceos mouth as gaos. What im looking for are people not wearing these. Okay these are actually rosecolored glasses. I try to ask more questions because i dont want to i cant have you get snowed by watching the interviews that i do occasionally ceos can be misleading, almost never flat out dishonest because lying about Material Information is a crime. So sometimes you need to take what they say with a grain of salt if not a full carton of mortins iodized. How many straight shooters, youll find, i believe that, i dont want to be too scenical here and again, when we have someone on the show with a track record of being extremely candidate or reliable or both, i try to point that out. It matters when honest smart executives tell you something is going awry, you should believe them and when they say its going incredibly well, the might be a reason to buy. This can be profitable if you get it right so lets take an example when mark, the bankable ceo of salesforce. Com came on the show during the depths of the great rescission and said the Cloud Based Software would be fine, you had to grit your teeth and buy it from november of 2008 to july of 2018, sales force gave you a 1,900 the 1,900 gain when you had to get it in when he said things were fine when patty doyle came on in february of 20110 and said how they would turn things around, and 2, these guys earn the benefit of the doubt and didnt miss out on some monster moves and look, i dont want to be too proud here but say hey, listen, i believe this guy and that helps. It helps to have me say it because i thought about this a lot and talked to for and that tells you something was wrong or take them extra seriously. Whether a Company Announce as short fall, you need to wait 30 days a lot of people attempt to buy as they are pummelling on to bad news and bad lows. In practice, i found that other than rare exceptions, the opposite is the case when business is so ugly a company is forced to coal out ugly, it means there is more bad news ahead or they wouldnt say anything why . It comes back to maya angelou. When someone shows you who they are, believe them the first time and the preannouncement the first time when they announce a bad first quarter, they arent just looking at the past but the order back to the future if there were any hope the business would get better, the company wouldnt have to cut numbers between the quarterly reports. If they thought something could get better, not worse in the next 30 day, they keep their darn mouth shut and wait the on going week will continue. Thats why i recommend waiting that 30 days to see if anything improved before you think about buying that kind of stock and this will really keep you out of trouble because i can count on one hand the number of times things got better within a month. Sure now youre going to miss great opportunities like i said. Maybe a half dozen sometimes the stock bottoms early. Most of the time after 30 days, youll sidestep another brutal leg down i know 30 days sounds arbitrary but ive done a lot of homework and found it usually takes at least a month for the bad news to get fully baked into the stock price, if not longer the bottom line, sometimes it can seem like we live in a post truth world where its impossible to know who to believe but the most skeptical among you should believe executives when they preannounce an earnings short fall they dont like slashing their own numbers. They do it because they dont see much hope of things improving by the time their company is they had duscheduled the next quarter the stock wont be bouncing back for the next 30 days, you should treat it as a falling knife. In short, if youre not a huge fan of Maya Angelous poetry, you should trust her Investment Advice stick with cramer. Oh, wow. You two are going to have such a great trip. Thanks to you, we will. This is why voya helps reach todays goals. All while helping you to and through retirement. Can you help with these . Were more of the plan, invest and protect kind of help. Voya. Helping you to and through retirement. I spent a lot of time tonight talking about the many ways in which you can make mistakes and the need to guard against them by knowing when to admit that youre wrong. Let me be clear, the market can be as long as any individual investor the market makes mistakes any day. This is my next big picture, dont assume the action necessarily makes sense. A lot of stocks are up and down for the wrong reason or no reason or out right stupid reason when a Company Reports earnings and a stock goes down, there is an impulse to believe the Company Might have disappointed and must have been a big quarter. Why else is stock going down you know what . Often that will be true. But its not always true sometimes there are other forces at work. Stocks will go down and bounce back when management explains things or vice versa which is why i always tell you not to jump to conclusions until after you listen to the call which is a huge drag but must be done in the middle of earnings season with hundreds of Companies Reporting, market makes a ton of mistakes but not just about errors and judgment. Stock prices do not always reflect the underlying fundamentals and how the business is doing. They are a big part of it. Over the long term, the most important part which is why i spend so much time focussing on them butthey arent the whole picture. You have to understand a stock market is first and foremost a market of stocks and just like any other market, its prone to all sorts of distortions. When adam smith wrote about the invisible hand of free market capitalism, he forgot to mention its the hand of someone with bad reflexes, lousy coordination and possibly some kind of neurological disorder and short stock prices do not somehow reflect reality all the time by magic. There is much as wall street and mat c ka c mechanics. By the way, this is why its possible for you to beat the performance of the averages by investing in individual stocks if the market worked perfectly you would never be able to exploit opportunities because the whole point is to stop stocks mispriced why do i bring this up when the action is irrational, it can be frustrating. I want you to take advantage of the moments where stock prices are wrong or at the very least, dont throw up your hands in disgust and give up on the enterprise because nothing makes sense. That would be bad. Remember when i say about stocks, greatest wealth engine created. Let me go over some of the largest distortions. I spent a lot of time talking about the etf of stocks this has become a major issue for the market for most of the my investing career, half of the stocks performance came from a sector meaning how the sector was doing and how wall street fell and came from the sexuactual fortune itself it was in control of half of the destin knee. You can generally do pretty well by researching companies to predict which would do better than competitors but the rise of efts changed the equation, especially sector efts and gimmick ones that are made up of fang, our acronym for facebook, amazon, netflix and google and there is resurging o stocks when netflix k5catches a cold, h others sneeze. They have little to do with the advertising business of facebook, a lot of times youll get situation where is sellers throw the baby out with the bath water. If the word industry reports bad numbers, the rest go down and those are your opportunities you got to pounce. Sometimes the market is just obtuse youll see Companies Report good quarter of good quarter to no real effect and a Critical Mass figures out yes, things are going well so the next time that business reports a strong number, the stock sores and in those cases you just need to be patient. The caveat is sometimes when the market makes a maistake, its nt worth fighting it. They can remain irrational for longer than you can remain solve solvent. An important economy mosteist io money manager. Your goal is not to be right but make money sometimes that means being scenical about other peoples expectations here is the bottom line. Dont assume that stocks that go down deserve it. In the immortal words of clientest wood, deserve has nothing do with it the market will make mistakes. Your job is to recognize when its doing something wrong and to try to take advantage of it stick with cramer. Ch enough . Everyone, look at your phones. The design thinking, the digital engineering, security, blockchain, and we will be first to market yes. When we do we launch . Unfortunately, in 2 or 3, hours. Why the delay . Cognizant is helping banks use Digital Technologies at scale to advance speed to market. I love hearing from the smartest audience in television. Thats you lets get to some tweets first tweet, he says jimcramer, why when a caller named richard calls in do you and your staff say his name in a high pitch thats a reference to the movie tommy boy. Chris farly and david spade. When a caller is named richard, we say richard a tweet says hi, any advice for new parents investing in something for the newborn child. Education, savings for tax free savings. So many options out there. You can do some to state by state but your gift to minors is the way to do it buy Growth Stocks. They have their whole lives ahead to make the money back buy high quality Growth Stocks next up is a tweet from wendy, i work with male teens and they think you sound like master yoda, lol im learning and so are they thank you, jim cramer. Youre awesome jimcramer. Okay yeah all right. Thats yeah thats precisely why my wife loves me so much okay here is a tweet from russ, jim, other than banks who benefit from raising interest rates, you know what . Not really many other companies i think that when rates go up, economy is really strong and people buy the industrials but the banks benefit because they charge you more. They make more money from your deposit and lend them when rates go higher and now a tweet from joey and he asks, jim, i absolutely love getting rich carefully. Will you be writing another book any time soon . Very interesting question because the economic haves chan changed. Ill work most nights and almost every weekend and then ill read the book and it used to be a very lucrative business to write books. Now its just a labor of love and i have other labors of love i want to perform including my garden here is a tweet from amy and she says i may not always watch mad money but when i do, i take notes so i can do my Research Later at nerd alert at mad money. I have to tell you, whenever im out with people, and i will say this references because my late dad would say this, too. Particularly people who are elderly who are playing the stock market, they come out with long lists of what they took down and i absolutely love it and they will go over i like this and that and it happens all the time to me and i think its terrific i think younger people dont know how to write down on a piece of paper anymore, thats the difference they are immediately putting it into their cell phone. They have no list because they have no pencil or paper. Here is a tweet and they a ask jimcramer, love the show. Can you explain annuity. Im 43 with a descent retirement nest egg i would say pick individual stocks and etfs and term Life Insurance is a fantist titastiy no fees whatsoever buy individual stocks other than the commission here is a tweet from gearhead and he asks what is really going on with inexpensive stocks with high yields . For example a 7 stock with 11 yield thank you love the show. Okay, what is going on there is a classic red flag meaning that people have gotten way too complacent and when a yield is that when a dividend is that high or distribution is that high, its often unsustainable. Here is a tweet fro from jaystanley can you suggest reading for a young firsttime investor . I want you to go to amazon and hit up the name peter lynch. Okay look at one up on wall street. The book i cut my teeth on its the book you can cut your teeth on all right. Well, thats all our tweets. So stick with cramer i like to say there is always a bull market somewhere and promise to find it for you here on mad money. Im jim cramer see you neck time. Narrator in this episode of american greed. Vitaly borker rules an 18 million eyewear empire hawking fake luxury designs online. There is no crime that ive ever come across where you can make this much money and face such little risk. Everybody wants something designer, something name brand for cheap. He had rayban, prada, gucci, chanel. Narrator customers think theyre scoring highend bargains. Instead, theyre getting hustled with bogus brands and violent threats when they dare to question vitaly borker. He just went nuts started yelling at me, started cursing at me