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Road Rules
Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
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Jun.25
4:55 PM ET
Monday, 25 Jun 2007
Buy an Upgrade After a Down Day
Posted By:Tom Brennan
Topics:Stock Picks | Stock Market
If you catch an upgrade on a down day, that’s a great way to make some mad money, Cramer says.
Normally, an upgraded stock goes higher instantly. But that won’t happen when there’s a sell-off in the market.
Instead, the stock will wait for things to turn up. The goal for the smart investor is to buy just before this happens. When the sell-off simmers down, that’s when you make your move, Cramer says.
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This is why it’s important to stay disciplined when other investors are abandoning ship. The cool head gets the best merchandise.
Bottom Line: One more method to Cramer’s madness – buying stocks that have been upgraded on days when the market is down hard.
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