There are plenty of mistakes that investors can make in the stock market. But of all them, this is perhaps most trecherous.
No matter how attractive a stock may be - no matter how well run a company is or how great the balance sheet is -- it's absolutely critical that you know how to play the price is right!
No, Jim Cramer doesn't mean become a contestant on the game show - he means learn how to buy stocks at a fair price, 'without going over'.
"You could have a fantastic idea, but if you get the wrong price, you'll get more than a buzzer and a frown from a pretty model. You may not make any money at all," Cramer warned.
And that begs the question - how will you know when the price is right?
Cramer's answer may surprise you - you won't. "You're never going to get an all-clear signal from the market telling you that it's time to buy," said the "Mad Money" host.
But that doesn't mean you can't get the right price. You absolutely can.
That is, if you adopt a strategy widely used by Cramer as well as other Wall Street pros.