Mad Money

Know Thyself

The emphasis on Wall Street is always on companies, their stocks and the industries in which they operate. Rarely is the spotlight turned on the person buying these equities.

But Cramer said that is of the utmost importance. The age-old adage “know thyself” isn’t just for philosophers and theologians. Investors, too, need to know themselves inside and out.

What are my investing goals? Do I like risk, or would I rather play it conservative? How well do I know my portfolio? Are my stocks long-term investments or short-term trades? Am I willing to admit that a stock I’ve picked just isn’t working anymore? These are all questions that every serious investor needs to answer.

If you can’t be honest with yourself, Cramer said, you won’t make a dime. But if you’re clear on your expectations, your plan and willing to make changes as necessary, you can make a lot of money. Watch the video for more.

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