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: How to Gain From the Long-Term Game

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


This program was last aired on Aug. 24.

NEW YORK ( TheStreet) -- Anyone can turn a profit in the stock market, Jim Cramer told "Mad Money" viewers, if they're willing to put in the time and effort. Anyone can do it, but only if done the right way, he added.

That's why Cramer dedicated his entire show to the notion of long-term investing, a term that's gotten somewhat confusing over the years -- so much so that the notion of long-term investing has become one of the biggest obstacles for new investors. That's why Cramer said he's setting the record straight.

Cramer said that too often the term "long-term investing" is used as an alibi or excuse for poor performance resulting from simply not paying attention. The term "buy and hold" often means "buy and forget," which is a terrible investing strategy.

Being in the game for the long term does not mean investors can afford to take short-term losses. Nor does it justify owning damaged goods, hoping they'll recover "someday." Investors must always keep track of their investments, said Cramer, and fortunately it's never been easier to do.

Whether its looking over SEC filings or searching the Web for the latest news and analysis, finding out what's happening at the companies you own is a necessity. There's no excuse for laziness, said Cramer, especially in an age where quarterly conference calls are only a click away.

"Stocks are still the best way to make money," Cramer concluded, but the notion of "buy and hold" needs to become a thing of the past.

Price Matters

Cramer's next lesson for investors? Few things are more important than price.

Whether you're a short-term investor or planning on owning a stock for years and years, the right price matters. Put simply, when you pay too much, it's that much harder to rack up big gains. But fortunately, if your time horizon is a long one, you can afford to wait and be patient for that perfect price to arrive.

In the real world, though, the notion of the "right" price is a farce, said Cramer. There will never be an "all clear" signal that now if the right time to buy. So how should investors approach this problem? Buy in increments.
1 of 4

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $121.30 0.00%
FB $94.01 0.00%
GOOG $625.61 0.00%
TSLA $266.15 0.00%
YHOO $36.67 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs