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Desperately seeking market pain relief

Monday, 27 Jan 2014 | 6:53 PM ET

With both the S&P 500 and the Dow Jones Industrial Average extending last week's losses on Monday, Jim Cramer knows that some investors may be finding themselves in a world of pain.

The continuing declines have generated chatter that a major correction may be imminent ."The next level of support is 1,775. I don't think we are in a correction yet but if we go below this level, then we might have to reassess,'' said Peter Cardillo, chief market economist at Rockwell Global.

If you're among those investors who are in so much pain, you're doubled over with tears running down your cheeks, there's something Cramer wants you to know.

"You aren't alone."

Dimitri Vervitsiotis | Photodisc | Getty Images

We know, that sounds like some kind of feel-good advice you'd expect more from Dr. Phil, than Jim Cramer but the "Mad Money" host isn't saying it just to boost your self-esteem.

As a professional investor he believes it's critical to understand what others are doing at the very same moment.

"You have to know that others are giving up at the same time," he said. However, eventually, that selling will be exhausted. Therefore folding your position when the pain gets too intense could lead to selling at the bottom. That's something Cramer hates to do.

Don't forget there are other investors in the market too – call them opportunists. "They're waiting for this juicy pullback to get in," Cramer noted. And when they begin buying, sentiment could shift. In fact, it could shift in a big way.

In other words the dynamics could shift on a dime. The question becomes will they?

To answer that question Cramer thinks you need to be honest with yourself.

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"You need to know what the company does, how it is doing, and why it is going down," Cramer said.

If you're holding the stock of a good company with solid management; one that has a solid financial position and maintains a leadership position in its industry, and, in this case, has limited exposure to the financial woes of China, then chances are the pain will abate.

If you're holding that kind of stock, Cramer would tough it out – tolerate the pain.

"Your pain tolerance does not just stem from your constitution. It stems from your knowledge. Knowledge equals power in this situation. If your thesis for buying the stock remains intact, then have confidence in yourself. Knowledge is the ultimate pain reliever," said Cramer.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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