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Road Rules
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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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Aug.28
6:35 PM ET
Thursday, 28 Aug 2008
For Lightning Round - Think Sectors, Not Stocks

Nowhere is Cramer more misunderstood than during the Lightning Round, he says. The problem? People take his recommendations from that segment and equate them with those from the rest of the show.

It’s not that the advice Cramer gives during the Lightning Round isn’t sound – it is – but it isn’t as well developed as the rest of the show, and you should weigh that accordingly. Remember that the Lightning Round is supposed to be entertaining, like a game show. The real question is whether or not Cramer can get through it without having a heart attack. But it’s also about interactivity and the viewers and the stocks they think are important.

To make the most of the Lightning Round, Cramer recommends thinking of it as sector analysis. You might notice while watching that if he dislikes a stock, it’s probably because he’s not hot on the sector. Or if he likes the sector, then maybe there are other best-of-breed companies the caller doesn’t know about. And that’s what is important: what sectors he likes, which he doesn’t, and the stocks he considers best in show from any given sector.

Bottom Line: The Lightning Round can be a valuable money-making resource so long as you approach it from the perspective of Cramer analyzing sectors – not Cramer saying, “buy this, buy that,” with no rhyme or reason. There’s always a method to his madness.





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