While this doesn't mean people should stop thinking, Cramer said that after doing their homework, if people agree with what the big institutions are buying, and they agree with most of the analysts, "then it's OK to be a follower."
"You don't have to feel bad about getting in late in the game or being a poseur," he said. "This isn't about being a unique and individual snowflake. It's about trying to make money." Moreover, Wall Street is often right, Cramer said. And stocks on the 52-week-high list often stay there for days or weeks by hitting new highs. While he warned against simply following the momentum, Cramer said as long as there is momentum and market players have done the homework, it's OK to follow the momentum of a stock they like. Cramer's last and "perhaps most poignant" rule of the night was "don't be afraid to say something is too hard." "There are some things that are just too difficult to game," no matter how much homework one does, he said. Restaurant same-store sales growth is something Cramer believes may be the most difficult to gauge. "Almost every time I've tried to game restaurant same-store sales, I've gotten burned," he said. "There are just too many factors at work, too many different things going on that could crush you if you get it wrong." While he said he's not telling people never to invest in restaurant stocks, Cramer advised viewers not to buy a restaurant stock expecting it to spike on a positive, better-than-expected same-store sales number. "There are too many better, easier ways to make money in the market," he said. "Restaurant CEOs have a hard time predicting their own same-store sales, and the weirdest, most unexpected factors can cause worse-than-expected results." Cramer said he means it when he says there's always a bull market somewhere. Therefore, he doesn't believe people should "beat their heads against the wall" trying to make money playing something that's just too hard.![]() |
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