This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: Tools of Cramer's Trade

Click here for an archive of Jim Cramer's Mad Money recaps.


Editor's note: This show originally aired on June 25, 2007.

On Friday's "Mad Money" TV show, Jim Cramer continued filling viewers in on the methods of his madness -- all the little tricks and tools he uses to pick stocks, to know when to buy and sell, and generally to be a great investor.

He started off by giving people a "rainy day" tip for when the market is having a really bad, down day. "What you need to be looking for after a down day is buying opportunities," Cramer said. "There is no better opportunity to buy than when you find a stock that's been upgraded by some analyst on a down day."

Usually when a stock gets upgraded, it jumps higher immediately, he said. But not when that upgrade comes out on a bad day for the market. "On those days, a stock that gets upgraded isn't going higher. In fact, there's a good chance it will go lower depending on how awful the action is," Cramer said.

"And there is your opportunity -- the day after the selloff, when things have calmed down and are less negative," he said.

Another method to his madness, Cramer said, has to do with how he determines if an individual stock is truly undervalued. "People like to throw around terms like over- or undervalued," but Cramer said he has his own rule of thumb for figuring it out.

Cramer: When to Buy JNJ and Mickey D's

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs