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March Madness lesson for stock pickers

Are your March Madness brackets filled out? As you make your picks, Cramer says there's a lesson to be learned for investors.

"I had a chance to talk with John Gasaway, ESPN's resident bracketologist for the NCAA tournament. I wanted to know the biggest mistakes people make in filling in brackets for the tourney. He answered in one word: emotion."

And that wisdom got Cramer thinking.

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Individual investors often make similar mistakes picking stocks. That is, they let emotion influence how and where they put money to work.

That's a mistake.

If you want to win, "You have to be coolly rational and unemotional when you pick stocks, just like in March Madness," Cramer said.

That is, you have to look at your stock pick with a cool head and clear strategy and make your decisions based on the best players in the game, here and now.

If you make emotional bets, you will likely stumble.

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And Cramer can't help but wonder if investors establishing positions in stocks such as Plug Power, Fuel Cell, Ballard Power are making emotional bets, rather than looking at the abilities of these players to deliver.

"Whether it's rooting for your alma mater, betting on a hometown team, or buying a stock just because it's hot, when the game is over, if you've made a move based on emotion, you probably won't win," said Cramer.

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