Jim Cramer does not get up out of bed at 4 a.m. every day just so that he can dish out the hottest stock picks to the "Mad Money" audience. He does it because he is passionate about educating Cramerica to provide the ultimate insider's perspective on how the market works and how to make money.
"What I'd really like to do is empower you, and that starts with me teaching you all the many tricks I use to pick out great stocks and trade them like a pro," Cramer said.
These are the same methods that have served him well for his four decades of investing and allowed him to generate a 24 percent annual return at his hedge fund.
So what does the "Mad Money" host look for when picking a stock?
One of the easiest ways for Cramer to identify the stocks that should be on his radar is to look at the new-high list. These are stocks that hit a new high in trading for the day, especially on days when the market is in bad shape. If it is hitting a new high on a down day, then obviously it has something good going for it.
One thing to keep in mind is that the market is not that hard to play, as long as it is understood that there is often more continuity than change. That means once you buy a stock, things will pretty much keep going the way they were until there is a major shift. Then you must change your approach and be prepared with a Plan B.
One trick to the trade that Cramer likes is to wait for a pullback to occur before pulling the trigger to buy a stock. He always tries to buy on weakness and sell into strength. He recommends waiting until a high-quality stock is down at least 5 percent, as that will give you a solid entry point.
"You only buy stocks that have pulled back from the new-high list if you are confident they will make a comeback for substantive reasons not having to do with the market," the "Mad Money" host said.
Read More Cramer's secret to picking stocks