Why We Tell You To Wait

On Mad Money we're always telling you to wait for a pullback before you buy any of the stocks Jim recommends on air. Part of this is to help you avoid the so-called "Cramer effect" caused by people buying the stocks he recommends after hours and sending them immediately higher, above the price at which we actually recommended the stock. This was such a problem in the first year of the show that we had to write a whole book, Jim Cramer's Mad Money: Watch TV, Get Rich, just to teach people how to use the show properly. We said you have to wait at least two days, usually more like a week, before you pull the trigger on any of the stocks we highlight.

Not all of this is about avoiding the "Cramer effect," though. It's also just good sense to wait for a pullback, something we endlessly repeat on the show. And that's why today I wanted to highlight the great pullback in all the wildcatters we recommended last week. Ram Energy , Range Resources , BPZ Resources , and Rex Energy are all down big today, and Petrohawk has pulled back nicely too. This is a GOOD THING. It means you can buy these terrific stocks we recommended last week at LOWER PRICES.

I've read Jim's hate mail, and instead of crucifying the guy because the stocks he recommended last week are down today, even after having big runs earlier in the week (Petrohawk, BPZ Resources, and Ram Energy are still up from where Jim recommended them), why don't you take advantage of the lower prices and buy? This is exactly what we think you should do if you want to invest in a stock that Jim recommends on Mad Money. Be patient, do the homework, wait for a pullback, and then pull the trigger.

Cliff Mason is the Senior Writer of CNBC's Mad Money w/Jim Cramer, and has been that program's primary writer, in cooperation with and under the supervision of Jim Cramer, since he began at CNBC as an intern during the summer of 2005. Mason was the author of a column at TheStreet.com during 2007, which he describes as "hilarious, if short-lived." He graduated from Harvard College in 2007. It was at Harvard that Mason learned to multi-task, mastering the art of seeming to pay attention to professors while writing scripts for Mad Money. Mason has co-written two books with Jim Cramer: Jim Cramer's Mad Money: Watch TV, Get Rich and Stay Mad For Life: Get Rich, Stay Rich (Make Your Kids Even Richer). He is 100% responsible for any parts of either book that you did not like.

Mason has also had a fruitful relationship with Jim Cramer as his nephew for the last 23 years and will hopefully continue to hold that position for many more as long as he doesn't do anything to get himself kicked out of the family.

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