Yemen's Houthi rebels have claimed responsibility for the attacks, which created a huge fire at a processor essential to global energy supplies.Politicsread more
Oil prices are expected to jump as much as $10 per barrel after a coordinated drone strike hit Saudi Arabia's largest oil field, forcing the kingdom to cut its oil output in...Marketsread more
Trusii's hydrogen water machines were supposed to help users with their health problems, but customers claim the company is involved in a giant scam.Technologyread more
The decoupling of the world's two weightiest economies seems as inescapable as its extent and global impact remains incalculable.Politicsread more
The trucking industry is worth hundreds of billions of dollars per year. Uber is going after this market with Uber Freight, an online platform that matches truckers with...Technologyread more
BlackBerry has reinvented itself to become a leader in securing mobile communications and in embedded communications. Next year it plans to roll out new products. CEO John...Evolveread more
Trailers have become a cult phenomenon. Even short teasers that reveal little about the plot of the upcoming film are headline-worthy. Blogs and forums have become devoted...Entertainmentread more
Thanks to the performance of Beyond Meat, investors who focus on venture-backed tech IPOs have done well this year despite some notable disappointments.Technologyread more
Software company Intuit, maker of tax helper TurboTax, is in its eleventh year of stock gains and up 36% this year.Investingread more
CNBC did a deep dive through the most recent Wall Street research to find stocks with upside potential.Marketsread more
The benchmark 10-year Treasury note yield tested 1.5% in late August and early September, bouncing off that level and most recently trading around 1.8%. However, another...Marketsread more
He does it because he is passionate about educating investors on the ultimate insider's perspective for the market and how to make money.
"What I'd really like to do is empower you, and that starts with me teaching you all the many tricks I use to pick out great stocks and trade them like a pro," the "Mad Money" host said.
This is why he decided to share the methods that have served him well in his four decades of investing — and to successfully run a hedge fund.
So what does he look for when picking a stock?
One of the easiest ways for Cramer to identify the stocks that should be on his radar is to look at the new-high list. These are stocks that hit a new high in trading for the day, especially on days when the market is in bad shape. If it is hitting a new high on a down day, then obviously it has something good going for it.
When Cramer sees a stock on the new-high list, it is either because it is part of a bull market, it announced fantastic earnings, or there is tremendous sales momentum within the sector.
However, that doesn't mean Cramer recommends chasing after every stock on the new-high list. The list is merely meant to be used as a jumping off point for stocks to start looking at. Then, the time-tested method of doing your homework comes in to play to ensure that the fundamentals of the company are sound.
One thing to keep in mind is that the market is not that hard to play, as long as it is understood that there is often more continuity than change. That means once you buy a stock, things will pretty much keep going the way they were until there is a major shift. Then, you must change your approach and be prepared with a Plan B.
A trick that Cramer likes to use is to wait for a pullback before pulling the trigger to buy a stock. He always tries to buy on weakness and sell into strength. He recommended waiting until a high-quality stock is down at least 5 percent, as that will give you a solid entry point.
"You only buy stocks that have pulled back from the new-high list if you are confident they will make a comeback for substantive reasons not having to do with the market," Cramer said.
But the most important tip is to make sure you understand why a stock has pulled back. Make sure there isn't a really good reason why everyone is selling the stock and driving the price down. Then you could get caught with your hand in the cookie jar!
So make sure that you are eyeing a stock that has been only momentarily damaged, and it isn't a troubled company that is headed down the tubes. How can you tell?
Cramer said that as long as the fundamentals haven't changed and a stock just pulled back for mechanical reasons, such as market-wide panic or profit-taking, you are OK.
"Some of my best picks have come out of this process, and hopefully some of yours can, too," Cramer said. (Tweet This)