I remember him saying the exact opposite a year or so ago, making fun of the "momentum" investors.
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Blodget Rips Jim Cramer In Slate Article
- Thread starter ByLoSellHi
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I remember him saying the exact opposite a year or so ago, making fun of the "momentum" investors.
umm, chood...
buy high, sell higher DOES work. it works better for individuals than funds, because individuals will only buy a few hundred-thousand of a stock, and can get in / out quickly without moving the market. and as long as you have stops, and just buy strong stocks on pullbacks, you'll do better than trying to bottom-fish when the tides are against you.
now, if people don't have stops? their problem. but buy high, sell higher has higher % reward, with (if properly done) lower % risk than buy low, sell high.
(edit - and obviously, in a bear market, you prefer to sell breakouts a little more, and short breakdowns heavy - thus, sell low, buy lower).
buy high, sell higher DOES work. it works better for individuals than funds, because individuals will only buy a few hundred-thousand of a stock, and can get in / out quickly without moving the market. and as long as you have stops, and just buy strong stocks on pullbacks, you'll do better than trying to bottom-fish when the tides are against you.
now, if people don't have stops? their problem. but buy high, sell higher has higher % reward, with (if properly done) lower % risk than buy low, sell high.
(edit - and obviously, in a bear market, you prefer to sell breakouts a little more, and short breakdowns heavy - thus, sell low, buy lower).
Quote from gaj:
umm, chood...
buy high, sell higher DOES work. it works better for individuals than funds . . .
How is it working LATELY? Because LATELY, or RECENTLY, is when Cramer spake the promotion. And, another poster above says Cramer was touting precisely the opposite a year ago. I wouldn't know myself (usually, I see the guy only for the latency of my channel changer, ie. thumb), but that would seem in character.
Quote from Chood:
How is it working LATELY? Because LATELY, or RECENTLY, is when Cramer spake the promotion. And, another poster above says Cramer was touting precisely the opposite a year ago. I wouldn't know myself (usually, I see the guy only for the latency of my channel changer, ie. thumb), but that would seem in character.
well, buy high sell higher (on non-big caps) has worked well.
now, if you took cramer's picks, you were basically treading water with the s&p. but i didn't reply to defend cramer's picks, just the buy high / sell higher part.
i haven't watched the show because he's no longer giving me anything i can trade. for a while, i could at least fade his 'picks', but the reliability of that has dropped relative to my risk. buying the picks hasn't been consistently profitable for a real long time.
btw, if you want a good laugh, check out his comments RE: ebay. something close to this:
(december) recos ebay. 'going to 40!' or something like that.
stock drops a few points. earnings come out. it gaps up, i think at .25 over where he reco'd it. "sell 1/4 position!". so risking a few bucks to make 25c.
then, yesterday? a buy again.
btw, i do have the 'short cramer picks' blog on my reading, and i continue to do the research on action, hoping i can again make some money from cramer...but hasn't been that way in a while. i'd take trading with him if it made money, but nothing there.
Quote from semiopen:
Is there an objective list of how well Cramer actually does on his recommendations? His TV show doesn't seem to go into money management much (and for a non watcher, I've never seen him make a really good call) but maybe his premium services.
semi - as of last november, his 5 year performance on action alerts (his premium services, which he always refers ppl to on his show - "sell this, buy this which is part of my action alerts portfolio" was roughly 24%. the s&p performance over the same time was roughly 22%. if you search through the archives here you can find out the exact numbers.
doesn't go into money management - because he doesn't believe in stops. he's written before on it years ago...does some bad things like doubling down on losers, among other things (see NT).
Quote from gaj:
. . .btw, if you want a good laugh, check out his comments RE: ebay. something close to this:
(december) recos ebay. 'going to 40!' or something like that.
stock drops a few points. earnings come out. it gaps up, i think at .25 over where he reco'd it. "sell 1/4 position!". so risking a few bucks to make 25c.
I'd guess that Cramer isn't anywhere as amateurish as your example suggests, only his audience is. Obviously, he's not an amateur (anymore than I'm a professional). Leonard isn't either for that matter. Just goes to show you the heights anyone can reach in America.