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

Jim Cramer's 'Mad Money' Recap: How to Profit From My Market Mistakes

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


This program last aired Dec. 29, 2014.


NEW YORK (TheStreet) -- These are confusing times for the stock market, Jim Cramer told his "Mad Money" audience. There's always somebody telling you to do exactly the opposite of what you should really be doing.

But Cramer said it's not about sounding smart, it's about getting it right -- what to buy, what to sell, what direction the market's headed. "You get those things right, and it's a heck of a lot easier to make money in this or any market," Cramer said.

Must Read: Warren Buffett's Top 10 Stock Buys

By doing your homework "you just might learn something that will make you a better investor," he said, and a better investor is one who makes more money "because that's the goal here."

Cramer said he recently went back over every trade his charitable portfolio, Action Alerts PLUS, made over the last five years.

Here's what Cramer has learned.

Caterpillar (CAT) had been going down for weeks on end as analysts raced to cut their estimates ahead of what looked to be a particularly bad quarter, Cramer said. The analysts had turned bearish after CAT's business globally took huge hits because customers were struggling to get credit for new machines. This was at the depth of the Great Recession.

When Caterpillar finally reported, the quarter turned out to be even uglier than the analysts had predicted. But CAT's stock barely reacted to the bad news. "That's a classic sign that you're looking at a bottom," Cramer said. "The worst is over!" CAT roared and then rose.

It may seem counter-intuitive to buy a stock right after the estimates have been slashed but when you think about it, it actually makes a lot of sense. JPMorgan Chase (JPM) is another example of this, Cramer said.

Must Read: GE Shows It's Moving Quickly to Focus on Industrial Projects

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