Dear Jim: Love your show. In the current volatile market, can you guide us in the use of stop losses or sells and trailing stops, whether in a dollar amount or percentage? Also, is the strategy different when applied to investment vs. speculative stock? --Michael
Cramer says: “…Do not put these stops in. Because you are going to get an execution price that is not good enough. If you are going to trade stocks, you need to be focused on the stocks…If you’re going to invest, it’s different. You can check once a week. But if you’re going to trade, you better be there…Also, no market orders…Trading requires some time, all right? And I don’t ever want to make it sound like it’s an easy thing to do on this show.”
Jim: My name is Matt, and I have been enlisted for almost 12 years. I began investing in October of 2008 and proceeded to lose 50% of my portfolio. I was ready to quit, but I watch your show as often as I can, and it has kept me in the market. I have since made up all of my losses and have even turned a small profit. I just wanted to say thank you for keeping me in the game! --Matthew
Cramer says: “First of all, thank you for serving. Second, you did it right. I want to keep people, not too euphoric when things are good and not too negative when things are bad. Right down the middle so I keep you in the greatest game in the world.”
Call Cramer: 1-800-743-CBNC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? email@example.com