Cramer's 'Mad Money' Recap: How to Get the Most Out of the Show

Stock quotes in this article: CMCSA  

To get the most out of a story where Cramer says he likes some stock, first people must consider the rationale behind the buy, he said. This "is always more important than what you're buying." Usually Cramer said he talks about the sector when he recommends a stock.

"It's more important to know what I think about a sector, than it is to know what I think about a single stock," he said. "You want to listen for that."

For example, when Cramer says he likes cable this is "much more important" than when Cramer says he likes Comcast (CMCSA Quote), "because 50% of where a stock goes is determined entirely by its sector," he explained.

"I'm usually trying to teach a bigger lesson when I single in on a bigger stock -- either something about the market in general, or about the market at a specific time," Cramer said.

For instance, if he recommends a stock with a great big dividend, then it's important for viewers to get the bigger takeaway that he likes stocks with big dividends, than to pick out the one stock he focuses in on.

Similarly if he tells investors to buy a secular stock, the bigger lesson isn't to go buy Procter & Gamble (PG Quote) but that "at this point in the business cycle, you want to own these kinds of supermarket stocks," Cramer said.

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