Cramer's 'Mad Money' Recap: Back to Even

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.

---

Editor's Note: This program originally aired on April 1, 2010.

NEW YORK (TheStreet) -- "Sometimes you have to un-learn conventional wisdom to be a good investor," Jim Cramer told the viewers of his "Mad Money" TV show Friday.

He dedicated his entire show to teaching investors the secrets he revealed in his book Getting Back To Even.

Cramer said the first myth investors need to learn to ignore the notion of buy and hold. He said investors should instead pay attention to short-term market fluctuations so that they can take advantage of them to buy stocks they like at cheaper prices, and sell those that have been driven unrealistically high.

Cramer said that stocks are no different from any other kind of merchandise. He likened them to buying a sweater at a retail store, saying that if you see a nice sweater for $30, you might consider buying it, but if you returned the following day and saw it was selling for $55, you might think differently.

Cramer reminded viewers that unlike the retail store, the stock market gives you a different price every day. But, he noted, that the risk-reward equation of a stock changes with its price, so shares of Google (GOOG), for example, aren't the same at $600 a share as they are at $700 a share.

> > Bull or Bear? Vote in Our Poll

Cramer said investors need not become furious day traders, but in practical terms, they should keep an eye on their stocks, keeping a shopping list of what to buy when they "go on sale." He said price matters, and investors can only make mad money when they're paying attention to the short term.