Cramer's 'Mad Money' Recap: Disciples of Discipline

Stock quotes in this article: CIB , ANDE , CSCO , MSFT , ADM , VSE  

Difficult to Gauge

Rule No. 4 is to "be a lemming," Cramer continued. Although it might sound "stupid" and "terrible," he told his viewers not to be original or unique and to instead "follow the Street's lead because most of the time it works."

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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At the time of original publication, Cramer had no positions in stocks mentioned.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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