Mad Money Mailbag: Bottom Fishing

Editor's note: The following are questions received from viewers of "Mad Money," seen every day at 6 p.m. EST on CNBC.


How do you look for a bottom in a stock?

-- Ed from Tennessee

James J. Cramer: That's a good question and one that I devoted an entire chapter of my latest book to answering.

In short, you must be able to gauge the market's sentiment to find a stock that is about to reverse its recent losses. And as with most strategies in this market, this is contrarian thinking.

The best time to try and buy a stock near its bottom is when you have analysts downgrading and investors running to sell a good, quality company.


Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

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