Making Mad Money with Jim Cramer

Market is not so hot these past three days, but the plan ended fairly well for the month.

Here is how the month of November ended:

Realized Gains: $5,825
Unrealized Gains: $ 370
Total: $6,195
Commissions: $ (300)
Net: $5,895

Currently holding 14 positions for $70,000.

Max buying power used in plan $85,000.

Return so far: 5,895/85,000 = 6.93%

Winning %: 56.9%
Win/Loss Ratio: 2.13:1

That's a decent return on capital for the month I think, but maybe you guys that trade at firms or successfully on your own can tell me what is a good monthly return on capital, what kind of return does your firm expect, etc...?

P.S. Commissions are based on an average of 257 shares a stock for 58 closed out trades this month, around 29,812 shares, given IB's $.01/share commissions that would get you a rounded up $300.

Attached is the spreadsheet.
 

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What exactly are you using for your trading. YOu indicated you were going to change the time you bought in the AM because of the gap ups and also change the stop and limits. What are you using now?
 
Quote from vhehn:

Get to Work on Deep In-the-Money Calls

By James J. Cramer
RealMoney.com Columnist
11/21/2005 4:47 PM EST
Click here for more stories by James J. Cramer
Tough to fight this tape -- no, make that brutal. We are in the season when people can't help themselves, where managers feel they can tack on points just buy buying stocks and where sellers, so prevalent when mutual funds were taking gains and losses, now seem to only sporadic in nature.

Plus, this week is one of those weeks where you can just feel the bullishness if you walk down Wall Street.

How would I play this?


What I used to do, in moments like right now, was pick the five strongest stocks, stocks like Apple (AAPL:Nasdaq - commentary - research - Cramer's Take) and Broadcom (BRCM:Nasdaq - commentary - research - Cramer's Take) and Marvell (MRVL:Nasdaq - commentary - research - Cramer's Take) and Google (GOOG:Nasdaq - commentary - research - Cramer's Take), and buy deep in-the-money calls on them for February or March.

I would use them as my proxy for when managers start throwing money at winners.

I would get 1,000 in of each, and then I would hope they came down!

This strategy, which I used almost every Thanksgiving week until 2000, when I knew I was hanging things up at the ol' hedge fund, worked nine out of 10 times.

Go to work.
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??? Hope they would come down??? I must be confused regarding the payoff of call options.
 
Quote from quantdropout:

??? Hope they would come down??? I must be confused regarding the payoff of call options.
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That was just Cramer-speak for "I'd buy a whole bunch more" and "I want you in DKS right now. They are going to report a BLOWOUT quarter!..." :D
 
Quote from johnmarg:

What exactly are you using for your trading. YOu indicated you were going to change the time you bought in the AM because of the gap ups and also change the stop and limits. What are you using now?
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My buys are discretionary but usually around 9:45-10am. Stops and limits haven't changed, they are working out fine.
 
Not trying to be a wet blanket, but I just wanted to point out that the Nasdaq Composite was up 5.32% in the month of November, meaning that your performance of 7%+, while great, occurred in a month when the entire market was cranking. I'd be interested to see how your strategy performs during a down month. If you can still outperform the market during those periods, then I think you really got something.
 
Quote from HotTip:

Not trying to be a wet blanket, but I just wanted to point out that the Nasdaq Composite was up 5.32% in the month of November, meaning that your performance of 7%+, while great, occurred in a month when the entire market was cranking. I'd be interested to see how your strategy performs during a down month. If you can still outperform the market during those periods, then I think you really got something.
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You are being a wet blanket, haha. But yes I know that the plan does better in a bull market and the month of november was definately in bull mode. That said, I still had a better return than the indices. The true test will be when we are in a bear market, also the true test will be on October 31, 2006 - what was my return vs. what is the return on the dow, s&p or naz for the year to date.
 
I Just thought this was interesting. Here is a spreadsheet of cramers top ten picks and his worst ten picks for the month of November. Pretty impressive, although I know some of you will hate and say anyone could have made money in the market in november, it is still interesting to see these kind of results.
 

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Hey Cramerholic:

I notice that when I watch his show which starts at 6PM EST and he recommends a stock in the first part, the stock prices have already jumped. My question is: there must be an internet site that allows someone to find out which stocks will be profiled on his show. DO you know what that might be. Is there a subscription he offers where he reveals the stocks before the program? I figured you would be since you are a Cramerholic. Thanks.
 
some people have special skills to guess which stock he is going to be talking about by hints etc.

For ex: he talked about uggs shoes before he mentioned the company DECK. Those in the know what cramer is talking about faster than those who has to wait for an exact company name.
 
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