President Donald Trump lambasted Twitter, Google and other technology giants on Wednesday for what he sees as their efforts to repress his messaging.US Economyread more
JP Morgan's Jamie Dimon says student lending "is a disgrace and its hurting America," he told Yahoo Finance Tuesday.Economyread more
Mnuchin tells CNBC he's confident President Trump and China's Xi Jinping can make progress in stalled trade talks.World Economyread more
The first debates will give most of the contenders their biggest platform yet to present themselves to the American people.Politicsread more
President Trump says "I hope we don't" have a war with Iran but it "would not last very long."Politicsread more
The stock market is shrinking for several key reasons, but there's a way for investors to maneuver it, says Citi Research strategist Robert Buckland.Trading Nationread more
Stocks rose on Wednesday as comments from Treasury Secretary Steven Mnuchin lifted expectations of a potential trade deal between China and the U.S.Marketsread more
Presidents Donald Trump and Xi Jinping are scheduled to meet Saturday, the second day of the two-day G-20 summit in Osaka, Japan.Politicsread more
A small group of companies have gotten so big that they are essentially becoming the market, and when they do well, the markets do well.Trader Talk with Bob Pisaniread more
Retailers can't let Amazon have all the sales on Prime Day. Target and eBay are two companies trying to compete.Retailread more
Democrats want Mueller's testimony on his probe into Russian interference in the 2016 election and Trump's efforts to influence it.Politicsread more
When Jim Cramer first started out in trading, he didn't like rules. He believed that either they couldn't really help, or they would cut his upside and prevent him from making more money.
After getting burned too many times, he learned the value of discipline.
"The rules protect you against your own bad judgment about what's going on at the companies you own or what's happening in the market overall," the "Mad Money " host said.
In order to really make money in the market these days, investors need discipline. Mistakes can cost you in trading, but if you do nothing with your money, you will have a whole lot of nothing to show for it.
Cramer constantly worries about the stocks in his charitable trust. He sees danger when the stocks in his portfolio go down as the market goes up. That tells him that someone knows something he doesn't.
One nightmare scenario is what professionals refer to as being "too long." This means the price of a stock is falling, and investors can't buy any more stock because they are out of money. Then they decide to make the terrible decision to borrow money to finance your portfolio, a move that Cramer thinks is a terrible idea.
"Stocks aren't houses. You can't fall back and live in them if you have mortgages on them. They just get taken away," Cramer said.
So, what is the magic trick to bail you out of a bad situation?
"Discipline trumps conviction," Cramer added.
He recommended that investors find their own form of discipline to watch their stocks, and have a game plan for when things go wrong. For instance, Cramer has a system of ranking his stocks when things are good, so this way he can hedge himself when they go awry.
He also thinks it is important to "circle the wagons" on a few high-quality stocks, and be willing to buy them when they fall so you can get a better average price for your earnings.
Cramer's ranking system will get you through the chaotic times and allow you to remain cool and methodical when everyone is scrambling in chaos.
At the end of the day, Cramer wants investors to recognize that things will go wrong. There will be a stock that you own one day where there is something wrong with the company, and you don't know about it. Events will come that you cannot foresee.
The trick to reducing the damage to your portfolio is to be ready with a game plan that will bail you out in the short term and keep you in the market long term. This way, your money is ready to work for you when you need it most.