Transcripts For KTIV Mad Money 20151128

Even when things are tough and you make those mistakes. The rules protect against your own bad judgment. If youre going to make money using stocks because you just cant get much of return anywhere else these days, thats pretty much the case, youre doing to have to work harder with your money to do so. And that requires discipline. Discipline because once you start buying and selling stococ, you can make more mistakes than if you just do nothing with your money. If you do nothing with your money, you have a whole lot of nothing to show for it. Thats why were doing a show on how to trade and invest responsibly to make your money work for you. How to tend it, how to make it grow, what kind of gardners of money tonight, how to keep it growing from active money management. Its a sin and a lot of you practice it. I want you to do it right. Before we dig into the ways to hands on about it, i want to delve into a little psychology of stock ownership. One question im asking repeatedly, i go back and forth from the street, to squawk on the street and wall street or they ask me at jim cramer on twter is, dont you worry about your stocks . Now, it is true, i dont own any individual stocks i invest just for charity with all profits and dichbs given away to chartble causes. But believe me, i still worry as i want to be able to give as much money to charity as i can. Plus i disclose everything i own and tell you explain what im going to do before i do is part of it. You bet i have concern. I can be down right embarrassing when i get it wrong. Yep, im always worried about the trust stocks especially when they go down. Im definitely worried when they go down when the market as a whole e going up, thats a sign to me that something is wrong, someone knows something that i dont know i better find out or i wont be able to take advantage of the weakness. Thats the chief reason why im always bugging you about reading the news releases, the guidance and going to the web sitesor more informrmion. You cant be informed d you dont try to inform yourself. I know that those who dont know what they own and cant articulate what they own and dont know what a Company Makes or sale know why it will be going down either, they dont know whether to buy or sell into a big sell off. Were talking abobo psychology here. The psychology of the m md when all that homework doesnt pan out. Believe me, it is frustrating. When we select a stock on the show the highlight we do a mass amount of work on it every single time. It is really difficult to see it go down, but there are plenty of times when there is, say, theres plenty of times when theres popping by management and you dont know by the truth. I talk about press releases that make things sound much better than they are. Who wants to start by saying were pleased to that sales increased by 12 . It sounds good accept the analysts were loooong for 20 . Withthhat 12 youve got a hideous shortfall, or worse than that kind of puck ri, when you own a stock and someone out there knows the truth and you dont, maybe someone found out about them playing golf with executive, maybe some hedge funds played under the table to get the truth as weve time and time foror years and years. Even somee ended up in jail for doing it. The insiders had the call, you didnt. There are also tops of time when you simply own too much stock, we call this being too long. You are too long as a presentationals say, you cant buy any more stock on the way down youre so out of capital, or worse, or borrowing money to finance your portfolio, which i think is just a terrible idea. Stocks arent houses, you cant fall back and live them if you have a mortgage on them, they just get taken away by the margrg nerds. So what do you do, how do you manage a portfolio under conditions where things go wrong with the stocks you own all the time and things go wrong in the market all the time, wholly a part of whats going on at the end of the dual companies in which you own shares. There are no magic bullets but i believe when in doubt, t ts one principle is key, discipline trumps conviction. Memorize that term, discipline trumps conviction. I staired at a yellow post it with those words for many years when i was managing money professionally to remind myself that things go wrong and you need to have a scheme to help you deal with those situations when things go wrong as thehe evidentblele do. Yes, i put a discipline trumps conviction sign on my personal computer to remind me what to do in the stock market when things go wrong. One of my best forms of protection to recognize if youre not tough and you like all of your equally, you cant be flexible. You cant change up when things go wrong, thats bad, people. Thats why ive come up with a system of ranking my stocks when things are good and times are plateauing and these a2e hedges against yourself for whe things get tough. You know, when its really calm out there, you can do good decision making. Not all stocks are created equal, you circle the wagon, juststike a wagon train going out west in the 18 hundreds around a good few stocks, buy them down to get a better basis or avrng price. Why does this matter so much . We must expect corrections and declines as a matter of court. We must anticipate the days where we wake up and hear the good people saying the futures are down, theyre down a great deal and the market looks to open down a half a percent or a down a percent, youve heard that so many times. Weve learned so much over the years about which triggers correction on that too. The most important thing to have a game plan you know even when youve done all the homework discipline dictates you must assume theres something you dont know going on with individual stocks or that theres something happening in the world thats beyond the control of your acumen and youre being victimized by the event. My ranking system will get you through the chaotic, when all others fumbling and fretting and desiting they cant take it any more and have to get out of dodge at the exact worst time. Here is the bottom line, in order to be able to deal with the decline in your stocks or the stock market as a whole, you have to accept that something is wrong at the companies you own shares in that you might not know about or maybe theres something happening in the stock market you didnt foresee. Therefore you must be ready with a game plan that can bell you out shortrt term so that your money works for you and not against you at a time when you needs it most. Frank in new york. Jim, i understand why a Company Goes Public to raise capital for various difference reasons, why would a company want to go private . This is a great question. They want because they think its worth a lot more than what the stock market is paying for when that is typically because the owners of the company, the managers recognize, theres so much value and the stockholders and buyers know. They take it private, make it look better and they tend to bring it public again. Ann in california, please, ann. I h hent seen any perspective on spock splits lately, im curious when theyre dpoipg to split their stock . Companies tend to be very close to us to divest about it. When you split it you get two pieces two for one split for the same company it doesnt create any wealth at all. It happens to be exciting, when stocks do split, some of the smaller r vest stores get a chanceceo buy. Alalright, that they didnt have otherwise, so i am prosplit but does it not create any wealth and you cant determine when it will happen. Discipline isnt but but it is necessary when you want to make big money in the market. Readad ll helpou out on mad money there are investments ill explain why understanding the difference will save you from a world from hurt. Headlines might be black and white. Plus a correction is always working around the corner, ill help you protect yourself when so stick with cramer. Karl, dont you have friends coming over . Yeah, so . It stinks in h he. Youve got totoash this whole room are you kikiing . Wash it . Lets wash it with febreze. For all the things you cant wash, use. Febreze fabric refresher whoa hey mrs. Webber inhales hey, it smells nice in here and try pluggable febreze. To continuously eliminate odors for. Up to 45 days of freshness pluggable febreze and fabric refresher. [inhale exhale mnemonic]. Tonight were going over the rules. The rules make it so loss rules that keep you in the game when others are freaking out. I used to talk about these rules all the time so they became Second Nature to. That w w years ago now, when i think about it its usually in the response to a tweet that the rules answer. Thats why i kind of dust them off and maybe sure people im not ducking the questions im looking for a better format to flesh them out than 140 characters where i cant b be thoughtful. I want to be thoughtful, but its hard. Here is a typical question, some will mention the stock, theyll ask, what do i do now . I often then turn the table on the person asking why did you buy in the first place . The followers regard that as arrogant or flip. What im really trying to doo is figugu out if they bought it as an investment, which means it might be fine for them in a longer time horizon and they should buy more or if they do it for a traz and perhaps they should cut their losses, why does this matter, because one of my cardinal rules is to never turn a trade into an investment. If theres one concept to take away, never ever turn a trade into something that it wasnt meant to be, a longterm investment. Lets talk about the process of buying a stock, the actual check data you must do before you pull the trigger. When i decide im going to buy an oil driller, i have to declare, right up front to myself whether i am buying it for a trade or for an investment, whats the difference . A trade means im buying it because of the specific catalyst, the reason that will drive it higher, recommendation, than expected or some news that we always talk about, break up into several pieces or some other material event is going to occur. In other words theres a moment to pull the trigger, a moment to buy. Perhaps because you think that oi is about to spike because of shutdown because of spigot in russia or some problems in the middle east and then theres a moment when the event occurs and youre done. You must declare first before you buy, here is why, the vast majority of you will buy a stock for a reason, neither the reason occurs nothing happens to the stock, you decide, ill got it investment, i wont wont worry about it or perhaps never the reason never occurs and you decide to hold on to whats the worst thing that can happen, the answer almost plenty. The answer you would have never bought it in the first place if you didnt think the reason is going to occur, theres no reasin for you to own it in the ive seen a myriad of invest stores turn trades into investments to full themselves theyre doing the right thing thats because they dont make the distinction between a trade and investment. Its the reason why i bought the oil company at Higher Oil Prices does it materialize, i cant say hold on to it because it has a swell dividend. The only thing that would have saved that from being cut Higher Oil Prices without them the idea for the trade is going into the dividend, now, when i want to invest in a company, not trade, invest in a company i buy a small amountnt of it to srt and hope the market will knock down the stock so i then buy more at a better price, thats right, i actually when i invest want the correction, which is always the way you want to be thinking if youre trying to start a new investing position. You dont want to buy investment stock. But, theres nothing like a get you better prices on your buy, trading is the opposite. I put the maximum on at the beginning because i believe the data point or the event is about to occur. I never buy anything for a trade without that defined catalyst thats the word we use. I never buy anything for a trade hoping it will go higher it can be no hopepe in the equation of buying a stock. I buy down lower prices when im investing. I cut my losses immediately when i am trading. Its the reason im trading the stock doesnt pan out. Thats why i like to say that my first loss can be my best loss. If you buy a stock for trade and it starts going against you in a meaningful way, cline of 50 cents is meanful, you may have a real problem on you hand. When it comes to trading im a disciplined person to the penny. I like to cut my losses quickly and get over them quickly, thats why i say my first loss is my best loss. All other losses tend to be lower levels. Again, ople, anyonee watching, feel the trade going arye but because of eco, pig headedness, they dont want to heed the thunder and they stay in, only to let the panic out at lower levels when the catalyst doesnt occur and the whole reason to own the darn stock evaporates. Dont fool yourself, cut your losses quickly when you put a trade on and it starts to go arye. Sure, theres an occasion or two when its about to pan out, but for the most part it does and youre probably going to be wrong, just a fact of life. Come pen yum of all the studies ive made, the bottom line never turn a trade into investmentnt take thehe lossss because believe me the percentages say youll most likely new money, if you do so do it earlier rather than later. Because it is the latter that can wipe it all out. Theres much more mad money ahead. Chasing g esnt always havee a happy ending. Corrections are certain, dont miss my take on to how to prepare yourself for the inevitable. Plus its easy to get attention for your hold, holding on too long can burn you in the end. Ill let you know whehe to stuckck the cordrd stick with cramer. Your clever moves wont stop the cold and flu. But disinfecting with lysol can. Because lysol wipes and spray are approved to kill more types of germs than clorox. Including those that cananake you sick. For a healththhome this cold and flu season. Lysol that. I couldnt sleep and get up in time. Then i found aleve pm. Aleve pm is the only one to combine a safe sleep aid plus the 12 hour pain relieving strength of aleve. Im back. Aleve pm for a better am. Were all familiar with this, axe daily fragrances. But what you wouldnt have seen is this, axe dry spray antiperspirant. Why are you touching your armpit . I was just checking to see if its dry. Dont, thats weird. The first ever dry spray antiperspirant from axe. Kelloggs frosted miniwheats. 8 layers of wheat. And one thats sweet. For the adult and kid in all of us. Kelloggs frosted miniwheats feed your inner kidult covergirl is the easy way to draw attention Perfect Point liner smudge with spongetip to create a smokin kitten eye lash blast mascara adds an instant blast of volume add a pow to your brow wow from easy, breezy, beaututul we are going over the rules that have gotten me at this point where in my career where i can play for charity instead of treading in my own hedge fund which i retired from. The lessons are very mucuc with me and im going overr them tonight in thi special show to help you in your portfolio. If it werent for that darn buy of, i would have been up big, i will be making a huge amount of money in the market if only i hadnt let blank lets use fire eye run against me when there was all that Insider Selling darn it, all. It makes one or two losers to wreck a portfolio. I try to devote far more of my time analyzing loser stocks than streak, rather, i recognize that stocks often telegraph decline ahead of time, loss control is power a aunt concern for allll ose in the market because the winners, the good stucks, they take care of themselves. Take the loss before it gets hideous. Dont buy into the notion that you cant sell until it comes back and then you promise not to do it again. How many times have i heard that one . Thats how losers think. You need to think like a winner not a loser. You want one of my answer focus on twitter youre obviously un unfocused. The flip side is true too, you dont have a profit. Listen to me, you do not have a profit until you sell the stock and nail it down. s not a profit, people constantly confuse big gains, real gains you can take to the a cashmere sweater in the Nice Department store with phony paper gains they can be taken away in a heartbeat. Most people were also reluctant to ever book a profit they dont want to pay taxes. I always tell people if i can just rewind the tape to january of 2000 or july of 2007 when people were sitting on literally trillions of dollars in unrealized gains because they didnt want to pay the tax man, we will be able to drill this point home well enough people will respect. Gains not taken can be losses that will be taken. Gains taken never become losses, its that simple. I stress this point because we have all been brainwashed not to sell. Somehow we think its simple. Its trading, whoa, its common sense cal to sell, its logical to sell it may be the only way to get rich in a choppy business, but its just counter to human nature. When it comes to stock human nature, i this i think youve got to learn to count. Its hard to resist. I cant tell you how many times ive had my heart in my throat pounding, pounding because i didnt own enough stock in a rising market. I didnt have enough exposure. I cant tell you how often i felt that i had to play. I had to be big in stocks because the market was going higher and it was going higher without me. Do you know thatat every t te i had that feeling, that instinct almo every time i had that i cant miss this action dro ma playing around in my head, do you know what happened, thats right, i lost money. Disappointed is the most important rule of winning and investing. Its teaching. Sometimes that discipline means admitting youu missed the opportunititand it is already too late. I almost always feel like i missed something right near the top of the market, the top of the move. When i was a hedge fund manager, i turned that sentiment boo a Profit Center by betting against myself in the market when i thought i was missing the upside. That heart stuck in the throat feeling core lated with the tops of moves not the bottom ones. I made money saying theres that pain again, sell. I always remember its the best time to buy when it feels most awful not when it would relieve the pain of fearing youre going to miss the big rally. You must protect yourself against over trading, trust me, there arent me great i ias to act on. The real great guys dont have that many ideau. You have to think aut when youre proned to this. For instance, want to go on twitter, im always amazed how people want me to opine a stock that just reported they want me to do it in one headline alone. I find that business wires that report these numbers are almost wrong ininhe quick t teaways an complicated than the press release. Headlines have presented stories about such and such number being better than expected are the type of d the realili is that theress something else, some other metric that might be more important thats manufacture with one time gains that happens all the time. I think you have to read the whole story and listen to the conference call, which part is the portion before the q and a when they lays out its guidance that moment, and not what the headline writer is responding to yoyo will see make the stock move, thats where you get the rack at move from. Everytng else, guess work. We cant do much with just guess work accept get in trouble. So many of you want to get in trouble periodically want to trade on the headline. Electronic trading you can move too fast and many too, its like learn the wholestory, iff its a great opportunity you will not miss it. Be sure you know what to look for and what matters. You might want to have a grid of what all the analysts have been saying about what is about to occur. That way you wont be fooled by the first move which can be taken by people who areless informed by youu and theyre less infofoed believe me, u uerstand that the headline for Many Companies earning doesnt tell you how theyre doing on the key metrics. What are you looking for, production growth, not earnings per share, hotels, revenue pa route, not earnings per share, revenue per seat mile. Many times ive seen up h hdline money to learn theyre guiding down expectations the key metric estimate wasnt beaten even though the headline says it was. The bottom line, dont let gains turn into losses, certainly never trade because you fear the market going up without you, or a stock rallying the headline just maybe might be wrong as they so often are. Ed in california, ed . Jim, iike yourr opinion on the strategy that ive been using i deep in the money calls going out anywhere from 6 to 12 months on stocks that you recommend this is to avoid any market swings what do you think of that . This is exactly what i want. Ed is doing exactly what i want. I talked about this. 800 page chapter i decided to t back. Hes doing stock replacement, hes taking the risk out of common stock and by stopping the decline and getting the upside, big percentage gains, youre the man. You know what i have to say, you have horse sets, jacob in california, please, jacob. Hey, jiji how are you . I love thehe show. Thank you. I love the advice its phenomenal. Thank you. As an initial, you know, first time invest store, what is your recommendation of how many positions once you have one should have without going over that had. We can only handle 30. Were pros, we get hurt. Which means i ihink more than a dozen in ann individual who may not be lets as so fis kated as we are going, so try to limit it. Its five with mad money thats a good way to get started larry in massachusetts. It was off said that Jack Kennedys greatest strength he surrounded himself with extraordinarily bright people, well i wouldnt be in the game at all but for your teaching through the many books, action alerts on the show. I have to tell you how much the folks that you gathered at the street. Com, brian, bob lang, and regina cliff, at the show. Holy cow. Youre a close followewe of e world i find myself living in. Whats going on. You know im a kra maniac. When does the core holding start looking long or something to be ditched in other words what characteristic made it a core holding . What a great action. Thank you for all those action alerts, here is what you look for, when Everybody Knows what you know, when theres single a analyst that doesnt love your stuff, when you con tantly hear that that company is great and ceo is great, you know what, its long in the. Got fomo, dont trade because you fear the market going up without you or if you fear a stock rallying that may be wrong, there is such thing over trading. Im here to help you out, coming up sure corrections will come. You dont have to suffer when they strike. Im going to show you how to prepare for those painful days and we all want our stocks to succeed, getting too attached to a portfolio killer. Ill explain why emotions and money dont mix, theyre oil and water. Plus im taking on your tweets, stick with cramer. I have asthma. One of many pieces in my life. So when my asthma symptoms kept coming back on my longterm control medicine, i talked to my doctor and found a missing piece in my asthma treatment. Oncedaily breo prevents asthma symptoms. Breo is for adults with asthma not well controlled on a longterm asthma control medicine, like an inhaled corticosteroid. Breo wont replace a rescue inhaler for sudden breathing problems. 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Kelloggs frosted mimiwheats. Layers of wheat. And one thats sweet. For the adult an kid in all of us. Kelloggs frosted miniwheats feed your inner kidult hey buddy, lets get these dayquil liquid gels and go. But these liquid gels are new. Mucinex fast max. Its the same differenen. These are multisymptom. Well so are these. This one is max strength and fights mucus. That one doesnt. Uh. Think fast you dropped something. Oh. Ill put it back on the shelf. New from mucinex fast max. The only cold and flu liquid gel thats maxstrength and fights mucus. Start the relief. Ditch the misery. Tonight were going ovevethe rules andd disciplines i have learned, holy cow, four decades of investing. Rules that i want you toknow, rules that i want you to just kind of learn by heart like i have. Hey, you know, not just like the stuff. This is real stuff here. A lot of people, for instance, dont think cororction is ever going to occur, you get loled into the market during good times a lot of people get in times when there have been months and months of good times. When bad times hit theyre eager to pin blame or be shock in disbelief. Instead of expecting corrections and not be fearful of this. When a correction occurs many invest stores decidedhey now want nothihi to doo with the market. Thats the correction signifies that something is wrong with the market as a whole as if these arent stocks of companies and, therefore, the market cant be touched. That is a really big mistake that is made constantly. Corrections happen all the time. They typically happen after big runs theyre to be anticipated. I l lrned this in n e great ter leverage y yrs ago, said anticipate these. You cant write off the market when they happen. Always like to put things in personalalties i tell the story of jody mauj owe, 56 straight hitting streak, when he failed to hit in games 57, should you have traded him, shohod youave cut him because of, well, whatever. Was he finished . Is that smart thinking . Same with the market. Corrections are to be expected and accepted as a matter of course, particularly after 56 great gays in the market youll get Something Like that. When they happen theyre not a reason t t panic. They can be great opportunities evev when people insist that the market is done because the charts are bad, taking out the moving average. Create death cross, whatever that is. Or the market is unpalble, some trap i hear every time it snaps a winning streak with a up couple of losses and we put on bears who come o o of hibernation, now. Given that so many dont expect corrections here is something that seems pretty common sensible, its avoided by people i have met. People wrongly believe in being fully invested at all times. Lots of managers think theyre supposed to be fully invested every y y. This i inonsense, lots of time the market just stinksou want to have some cash on hand im not saying going go in and off. Have some cash, pretty good, a lot of times its nothing to do accept have some cash. In fact, one of the chief reasons that out perform every manager in the business during my 14 year run, is there were substantial blocks of time i had a a t of caca. I was largely in cash including dropped. So its actually 22. 6 hit, to be precise. Times, even when it learns little and nothing. I regard perfect hedge as supposos to shortrtg the market, the market keeps going higher in 1999 or the year befor the Great Recession in 08. You can face devastating losses and continue to stay overvalued and climb and climb and climb. I think cash may be the single most under rated of investments, because nothing feels as good as cash when the market comes down. You u ow thats my trust, always good to be in great position if you follow my meft of how to trade, youll know if it spikes i take off stock off, sell a little, trim here and there and get ready to reposition myself for the next correction. Folks of you viewers k kw i sell strereth and buy weakness. When the time is right i almost always have that cash to put to work because i believe so strongly in cash as an option. If you dont raise that cash, here is what could happen, you might end up selling your winners to subsidize your losers, that is another common mistake people make. So many b b Portfolio Managers always sell their best stocks so they can hold on to the worst stocks. You can always tell wn you see this pat terch. Youll be reviewing someones portfolio i used to all the time, and the port foal you will be filled with junk and you will say, hey, what happened to all of your ill say what happened to all of your blue chips the kind of stock thatt allow you to come out smiling on the other side. Invariably i had to sell those. They kept going on. Many on tweeter seem to have this problem. Portfolios riddled with stocks that stop working a long time ago. Ive counselled enough professional invest stores to know the first thing to get sold are the best ocks. Theres alrlrdy a bid for the good s scks why the bad stocks seem to go straight down the line and fold under any pressure. When some of the more admired professionals have a handful of good and awful they dont sell the awful ones theyre down so much. Typical alibi, theyre probably going lower, please do not subsidize losing spots. If you own companies with deteriorating fundamentals, common occurrence, please sell the bad ones, take the loss, reapply the proceeds, go to the good ones, move on. Dont feel bad for yourself, lots of times and circumstances simply change for the stock market. Might do a lot of business in russia whichchould have been great, wit the fight on Ukraine Companies you recollecting. Thats nothing wrong with that, slow down the economy, thats caused shopper it is to stay away from expensive brands of products. Which happened i called the depantrying of america, the blind side many of the food stocks seriously thought to be safe, or perhaps like e company king fortunes and very big drugs and generic competition crushed the margins ch theyre so often kept because they had gone down and investors bought more of these stocks and sacrificed let mef give you the bottom line, its coming, have some cash on hand, when it happens dont sell the good ones to subsidize the bad, youll end up with a terrible portfolio that wont be able to bounce back when times turn better. Mad money is back after the break. Affordable renters insurance. With great coverage it protects my personal belongings should they get damaged, stolen or destroyed. [doorbell] uh, excuse me. Dedevery. Hey. Lo mein, szechwan chicken, chopsticks, soy sauce and you got some fortune cookies. Have a good one. Ah, these small new york apartments. Protect your belongings. Let geico help you with renters insurance. Americans. We try to live healthy. But many of us dont know there are nutrients that can help support our metabolism. Ke new one a day healthy metabolism support multivitamin with chromium to help use carbs from food and bvitamins to helpconvert food to fuel. One a day. Were all familiar with this, axe daily fragrances. But what you wouldnt have seen is this, axe dry spray antiperspirant. Why are you touching your armpit . I was just checking to see if its dry. Dont, thats weird. If you arent prepared mentally, you wont be tough enough to handle these moments and you will flee instead of thinking about whats really right to do or youll be paralyzed with fear and self doubt instead of mindful and opportunistic. Emotions have to be checked at the door in this business. I auch hear people say, i hope that a stoke goes up or they ask jim cramer on twitter, doesnt have to go up . Come compliant go up, doesnt a team have to win . People this is not a sport event. Were buying stocks that we believe should go higher and were avoiding stocks where the underlying business is getting bad and getting worse. People treat this business like a religion, like an etiology, they believe if they pray things will work out, maybe they will. Or they fall in love with these pieces of paper that love will be requited. Be realistic, hope, pray, love, these are all enemies of good stock picking. I recall the when i would get off the trading desk and she would say, whats the deal with this memorex a company that got crushed. I am hoping to get big contract. She would screen, hope. Hope. We need hope to make this work. Sell it and gete sometding where we have more in our favor than just hope. Man, what a beat down. Many times she didnt even ask, she just sold it after i used the word hope to see if i would buy it back. I was hoping something would happen and once it was sold i felt, well relief. Sometimes the stocks of Good Companies do nothing and you get frustrated and you want to sell them. Good stocks can do nothing for ages. If youre a professional investor in a hedge fund this partners calling you, asking money. Pain. Individuals can sit on stocks slong they want. When i cancel patients many get ansi, theyll netflix, they went to gains they want it now. I say some of the best stocks require some incubation. You know how patient i was owning intel. Nothing, paint dry, nothing at all in late 1980s but i believed. I held on to it because at that time i had a few partners and none of them needed to know how much they were worth. A common stream asked how i was doing. Later in my career when partners hounded me daily, i would have never held on to intel that long. Lots of takes a long time. Lots of turn arounds take 18 months to 2 years when you buy a stock, market it so you dont get tired of it sell it and give up. Here is something to remember, stocks that are stuck tend t t mp when they are freed from the gates. Do you hear the patients . If you dont, let someone, no should have, would have, could haves. One of the most disspeckble trades second guesses. You buy some sell jean suddenly dupont the dayay before and sends it soaring, next thing you were filled with self doubt. Thats nonsense. Get it together. The market requires you to have the right head on at all times. You have to be ready to see the ball right for the next pitch, okay. Theres no time to get on down on yourself do that for fantasy f. You want to constructive, bracket some time at the end of each month or maybe at the end of the quarter to assess your strategy and your stock picking anlts to second guess your vat ji, mind you, i want the pain felt. When i thought one of the younger that was costly to me, i made them the wear the symbol of thetock that they scrcred up on as post it on thejr forehead for the day. I st them outside. If only i is time to keep you from getting the next big stock. Than men they lack second guessing instinct. Whatever, she did teach me to steal myself to come in the next day without the mental baggage of screw up so i can be ready to swing it. This business is not about hope. It is about fundamentals dont root for your stocks pick shares in good company and they will unless circumstances change dramatically that cause you to sell, theyll go higher. But be patient on the good ones and try too keep the sell p doubt to a minimum. Clear your head, get out there immediately and find out the next big winning ideas. Theres just no room for should and stick with cramer. Favorite part of the special, we go for what you want, thats right, weve got some tweets youf eve been sending me me jimcramer. My first tweet comes from Mark Richards auto dividend reinvevement take cash or buy selectively. Your take . A huge percentage that they have come exactly from dividend reinvestment. This is a no blainer there are few no brainers and prelaunchers in this business. Compounding is the secret behind great wealth. Reinvest. Here we are, who wants to know first came up with t t way yosay meyers that happened to be broker, can you imagine when cramer and i traded together, we had a broker who often recommended for some meyers he always said it that way. I decided, hey, thats the way its really pronounced. Lets take our next w wk fromm at craig which is smarter, add to a whole ring, if you do not want to buy more of that stock lower, then you should just sell it because if you liked it higher, you should love it lower. So the answer, buy more of the lower one or get rid of it. Up next at no too l whahaver. At whaha percent for profit should we sell shares. This is really important. Theres no firm rule. When a stock goes up about 50 , i like to sell some of it and then a little bit more and i sell more. But the all great investing, you play with the houses, money. Thats the way to do it. Always tryry to fighto get to the point where youre playing yes, stay with cramer. Hey buddy, lets get these dayquil liquid gels and go. But these liquid gels are new. Mucinex fast max. Its the same differencece these are multisymptom. M. Well so are these. This one is max strength and fights mucus. That one doesnt. Uh. Think fast you dropped something. Oh. Ill put it back on the shelf. New from mucinex fast max. The only cold and flu liquid gel thats maxstrength and fights mucus. Start the relief. Ditch the misery. Lets end this. I take pictures of sunrises, but with my back pain i couldnt sleep and get up in time. Then i found aleve pm. The 12 hour pain relieving strength of aleve. Im back. Aleve pm for a better am. Happy anniversary dinner, darlin can this much love be cleaned by a littltlbit of dawn ultra . Yeah. One bottle has the grease cleaning power of two bottles of this bargain brand. I like the say theres always a market somewhere, i promise try to find it just for you. Im jim cramer and ill see you next time. Cat greenleaf voiceover im cat greenleaf. And tonight on a special 1st look, im exploring the many faces of korea. From the Rolling Green hills of hadong its hard work. This is no joke. I mean, all of these mountains need to be picked. Cat greenleaf voiceover to the colorful port city of pusan. Youre a very good chopsticks user