Mad Money’s constant pursuit is to educate its viewers. The goal has always been to level the playing field and give the everyday investor a chance against Wall Street’s titans. Over the years, Cramer has collected some key dos and don’ts into a handbook of sorts, and he regularly opens it to teach so-called amateurs how to trade like pros. Today, he shared five more rules that every home-gamer needs to know.
Consider the reaction to Cramer’s near-bottom call in early March. When the Dow hit 6,500 in March 2009, he urged investors to start buying. Why? Because he’d run the numbers on a worst-case scenario for the index, including the complete collapse of every financial component – Bank of America , Citigroup , JPMorgan Chase , even General Electric – the elimination of Caterpillar and 3M’s dividends and the bankruptcy of Alcoa , but even that wouldn’t have taken the Dow much lower. Cramer figured a rebound was imminent.