If it makes money in 6-12 months then we can all say, ok cramer might have some bad picks here and there but if you trade him right you can make money on them. That's all this is, can you make money trading his picks. If it does then cramer haters can stop posting negatives.
Making Mad Money with Jim Cramer
- Thread starter Cramerholic
- Start date
If it makes money in 6-12 months then we can all say, ok cramer might have some bad picks here and there but if you trade him right you can make money on them. That's all this is, can you make money trading his picks. If it does then cramer haters can stop posting negatives.
It cannot just be about making money, it is how much. If he tracks the S&P, then not so good. If he beats it by 5 - 10%, then it becomes more interesting...
Just make sure you reinforce that these are NOT lightening round pikcs but his specific picks outside the round.
Phil
Just make sure you reinforce that these are NOT lightening round pikcs but his specific picks outside the round.
Phil
Ok, glad you cleared that up, S&P Tuesday morning was 1207.01 right now it's 1216. A gain of 0.7%.
Realized Gains in the mad money portfolio is $2,039, divided by the maximum investment at one time of $55,000 = 3.7%. Currently we are beating the S&P by 528%.
I will update this every friday so we can get a better Idea as one week does not indicate anything. We will use the November 1st S&P opening price of 1207.01 for this.
Apologies if there's any misunderstanding, and I have no intention to praise or bash Cramer. I meant, how well this strategy will work, trading the picks he stressed by the rules you set. By the end of the year, regardless the return of this strategy, you have done your job as a trader, that's all. In fact, if you abandon it after say 3 months because of negative return, it is still commendable. Finding new ways to trade--that's what trading is all about.
And regardless of the return of the strategy, it says nothing of Cramer's ability to pick stocks, as his time frame (if any) is different from the one of your strategy. Again I have no opinion of Cramer's picks (though I have some of Cramer as character).
Here is a website you may find interesting:
http://www.booyahboyaudit.com/A-C.html
I have no info on this website other than knowing it exists. I haven't checked the validity of any of the data. It may be correct, or it may be totally incorrect. I present it only as a source for those who may want to investigate this topic further.
I think it would be interesting to examine some short term action on Cramer's trades. I say short term because I wonder if there is any play in the "Cramer effect" without regard to whether his picks are accurate or not. Just the action from his pronouncements of them would be interesting to analyze.
Cash
http://www.booyahboyaudit.com/A-C.html
I have no info on this website other than knowing it exists. I haven't checked the validity of any of the data. It may be correct, or it may be totally incorrect. I present it only as a source for those who may want to investigate this topic further.
I think it would be interesting to examine some short term action on Cramer's trades. I say short term because I wonder if there is any play in the "Cramer effect" without regard to whether his picks are accurate or not. Just the action from his pronouncements of them would be interesting to analyze.
Cash
Since this is only an experiment, how are you determining the sell price? I see some trades are executing right at the limit while others are trading above. How are you determining where you sell?
Also, are you planning on factoring in slippage since trades don't always happen at the limit/stop price?
Also, are you planning on factoring in slippage since trades don't always happen at the limit/stop price?
For the one's sold above the limit price (URBN + GGC), they happened due to gap ups at the open, they were sold when the price started dropping from the gap up. If this were to happen to stops I will do the same and take a bigger loss than the stop.
I won't be calculating slippage in the spreadsheet. Most if not all of the limits this week were actually exceeded anyway. If I set a limit for a certain price it gets filled at that price with my broker, maybe yours is different.
Someone else posted this website on ET. Problem with this website is that they think Cramer needs to hold their hand and tell them when to sell. They don't close out a trade unless Cramer mentions a sell on that stock on the show.
Cramer mentions hundreds of stocks each month, do you think he has time in his show to run down all the stocks he mentioned three weeks ago and say "yea I think you should sell these 50 stocks that I mentioned 3 weeks ago." There's just not enough time in his show for him to hold your hand.
There's a column on my spreadsheet called Cramer's MoJo which is essentially the Cramer effect on a stock, as you can see the average percentage he moves a stock by the open the next day is 2.85% this week. He definately has a short term effect on stocks, but he also has very good fundamentals backing up his picks.
Here's how we ended for the week.
Realized: $2,289
Unrealized: ($9)
Total: $2,280
Holding three positions (SIRI, ABB, ISRG) into the weekend for a total of $15,000.
S&P Return by Friday: (1220.14-1207.01)/1207.01 = 1.088%
MMP Return by Friday: 2,280/55,000 = 4.145%
Beating the S&P by 380%
Attached is the spreadsheet.
Realized: $2,289
Unrealized: ($9)
Total: $2,280
Holding three positions (SIRI, ABB, ISRG) into the weekend for a total of $15,000.
S&P Return by Friday: (1220.14-1207.01)/1207.01 = 1.088%
MMP Return by Friday: 2,280/55,000 = 4.145%
Beating the S&P by 380%
Attached is the spreadsheet.
You have a great idea on an interesting thread. It'll be important to watch over time!!!!
You started the thread on a date with a highly trending market, so naturally you are going to have more long winners than losers.
I'll be fascinated to see your long term results.
The madmoney.com site is a paid member site. I never watch the show. Is anyone aware of a free site listing his picks?
You started the thread on a date with a highly trending market, so naturally you are going to have more long winners than losers.
I'll be fascinated to see your long term results.
The madmoney.com site is a paid member site. I never watch the show. Is anyone aware of a free site listing his picks?