Cramer's 'Mad Money' Recap: A Study in Stents

If the panel says that stents are safe and the stock spikes, "you should sell it right then and there," Cramer advised. "Boston Scientific is not an investment, but a trade."

Boston Scientific is risky, but it is also cheap, he went on to say. Although its buyout of Guidant was risky, there's "serious potential there," Cramer said. In addition, even though the company recently had a bad quarter, he believes there is no reason it should repeat it.

There is also an age component to factor in when making a trading decision, he told his viewers. At 51, Cramer said he would not buy Boston Scientific, because he believes someone that age is too old to make such a risky trade. When you're young you have all the time to make your money back, but "once you get older it's better to stay risk averse," he said.

Investor, Know Thyself

As long as people know what they are looking for and the type of money they're trying to make, they can make more rational decisions as to which stocks they should get into, Cramer told his viewers.

Among the factors people should consider when trading are their age, wealth and what they are planning on using their money for, he said. The answers to these questions should affect an individual's investments.

All of these factors are discussed in Cramer's new book, Jim Cramer's Mad Money: Watch TV, Get Rich, which hit bookstores today.

Getting back to discussing the merits of stents, Cramer said Johnson & Johnson should not take a big hit if stents are not approved. But at the same time, he said it won't go up very much if they are approved.

If market players want to get in the stent game but are not comfortable getting in a pure-stents play like Boston Scientific, Cramer advised getting into Johnson & Johnson. He believes this stock should go up regardless of what the panel decides, but it will not go up as much as Boston Scientific if stents are approved.