Do you know the steps to take to make a stock pick?

In his November Action Alerts Plus members-only call, Jim Cramer broke down the steps he takes when he's making a stock pick. 

One rule, which is relevant at this time, is watching global political issues. 

"We absolutely must be screening exposure to the sinking fortunes of China. You must ask yourself before you buy a stock, is it too levered to a geographic region with too many fundamental issues that are hard to grasp and seem intractable for the foreseeable future," said Cramer. 

Wondering why Cramer thinks this is such an important rule for investors?

"As you know by now, I've become less sanguine about resolution to our trade issues in 2018. And, while, I'm not holding out hope that we could get positive news at the G20 Summit, I'm not willing to wait and find out," said Cramer. "Investing in hope is a losers game. We don't do that here, we're professionals. We look at what we know and what we know right now is that China and the U.S. are both too proud to let the other be viewed as the victor in this trade dispute."

Cramer went through his seven rules to picking a stock during his members-only Action Alerts Plus call. Members can watch a full replay of the call on Action Alerts Plus.

 

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