Jim Cramer has some advice for investors buying when the market is soaring.
Here's what he had to say on Twitter early this morning.
Watch the video above to see what advice he has.
Speaking of confusion, you were tweeting this morning that a lot of investors seem to be confused. You called them morons who came in to buy when the Dow was up 500 this morning. So Jim, what would you say to these investors who didn't heed your warning?
Well, I mean, first of all, the directional nature of the future's [inaudible 00:05:06]. So look for all I know there's some really smart people on the other side of the trade, so I don't want to discourage them, but I just think that the market is thin enough. You don't need to test things at 4:15 [inaudible 00:05:18] say, "Oh wow, because Italy's coming back and the market's up a little I'm going to go buy our futures," or because oil looks like it stabilizing, which doesn't ... I mean, these are people that are just fools.
I learned that lesson in 1989 when Japan was peaking. I used to buy Tokyo Electron and then short Tokyo Railway. I mean, yeah I used to play that game. I had a lot of energy. I still have a lot of energy, but I used to pick days not to sleep and trade furiously overnight, but I always knew what I was doing. I had always done a lot of work. I mean, these people are trading because they're like, I indicated they should go [inaudible 00:05:58] The Gambler. They are trying to hit double zero, and double zero is statistically very difficult to hit. I'd rather have them playing cards, going for shoot the moon. But what is absolutely wrong is the think that you can make money in the regular market by trading in the overnight. You're going to be wrong-
I think that sound advice.
I mean again, look I have the benefit of looking at and trying to have done ... This is probably the most important. What do I really have the benefit of my age? It just has to do with how many times I've tried something, and I've realized that the definition of insanity is indeed that you keep thinking that it's going to change if you do the same thing over and over again. So what I've learned is that don't do it, and I want to impart upon people not to do it. You don't know what you're doing, and that that's no fun.