Mad Money w/ Jim Cramer 11/11/24
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Cnbc has quick and easy to understand business news updates at the open midday and close every weekday. Markets, money and more from wall street to main street. I, C N B C, Jessica edger, follow and listen to C, C, business news updates wherever you get your pocket.

My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a more work summer, and I promised to help you find that they have money starts now.

Hey, i'm cramer. Welcome to have money away to creme america. Other people want to make friends.

I'm just trying to make a little money. My jobs not just entertain, but they teach you. So call me one hundred seven worth P.

P. You put me in cramer in a boat market. There is nothing worse to watching the average war higher, while your profit just sits there.

barely. Movie IT makes you feel like a complete dope, doesn't IT like the stock market IT must be for a total show game. But really IT just means you might be making a few basic mistakes.

That's right. Tonight i'm in the whole show of my playroom. Protect to be abused with the so called bear market, which is a bogus term.

People threw around whenever stocks go up at a time when the intelligence a thinks they should be going down. I give you my game plan for handling short term games. Now I know what a lot of you are thinking.

What kind of company to do needs a guy to make money rally? What next is to draw the diagram, spend how to pick your nose? I mean, made party training.

Should I just start reading picture books to children? Hey, we've already got the animal. Maybe feel like that that's the same level of difficulty is making money when the stock market is on fire. Who needs help in the dance of hundreds of points in the day, or even Better, during a multiday rally, a real run of by fast.

Do you really need my voice to help you deal with what a huge profit? No, I not buying in the biggest small through investing more money, more problems, but knowing how to approach a quick run the right way can make you a Better investor. In tonight, I want to teach you some of the discipline that we demonstrated for the cmc, investing up all the time.

Sure, everybody makes money in a big rally. Can even feel like you're run your proposed run itself that IT doesn't feel like that. But i'm not here to talk about how to make the most money possible in the mark up big.

Not a crucial no. The most important lesson for dealing with the major shorter move higher is that you always have to work hard to prepare yourself for the future, otherwise you'll end up letting some great opportunities too. So so as you buy so that's right.

Just as we can give in to despair when the market stand, you simply don't want to give in to europe. And bye ye bye when the market worry that's not when you should buy IT is when you should be taking some tips off the table. Remember, you don't actually have a profit to.

You sell something. You aren't making money until the register is. And the idea that you should buy and hold through both the best of times and the worst of times as well being incredibly foolish, with only very few exceptions.

You need to use strength to lighten up gently on stocks of copies with decorating fundamentals. That's why I always see if you do your stay comment, because how long will you know what on old? If you don't want to do IT yourself, you know what?

You can join our club and club every do a lot of homer for you and with you. Why is IT so hard to sell this string? Good question.

Let me put IT this way. Nobody wants to miss rally. If you sold every stock you own, right for a year up day, you feel like a stuyvie mp. Let's look at another way, say you're in stocks for the rally and you have massive gains, but you don't do anything. You let them ride, so to speak.

And then gradually, maybe not so gradually, your stocks come back down if you are over too long, if you let your gains right until baby, how is that any different from missing the entire rally? IT isn't making lots of money on a great day or a great months. A great year is wonderful, but you give you rally is just a day or a few days.

We are portfolio went up and value nothing more. You need to see IT as the time to take action, even if you don't face yourself for trade and try not to time in the market. Even if you're like that and I encourage you to be like that, you have to make an exception for some very good but sharp of Brownes.

That's what i'm talking about. Just you need to remember the good days during the cell s to keep yourself in the game, you need remember the downside when the markets warned to keep yourself tether reality. Don't pass up and up to you trim or positions just because you're in stocks for the long holes and investor, not a trader.

And my onion ball of the positions, that's not what i'm saying i'm talking about doing. Be an investor does not absolve you of the need to have judgment. In other words, you should have put every rally with a grain of pessimism about what's coming next.

That shouldn't be that. Think about this. They like the post cover meltdown in twenty two. Not many one to. So I want to look too great, right? Because we believe market buying the tips made you a fortune, but that affect to clear war on inflation.

And those games disappear if you would sold subscribers in the way up, as I told you do you were much Better shape as the markets' the next seven months, just getting a binary. There's nothing wrong with feeling good about a rallies, someone with some violent move, ways that have a reach for that cheap scotch line, dirty olin floor. When you yet that really bad, take to tell you, I recognize that you celebrating your stocks when times are good, you for that is fine.

As long IT doesn't lead to complacency complacently, is your emmis a big up day? You can be thrill. You just don't don't forget that you're getting a trip c opportunity to lights on summer stocks. That's what short noise for. But it's very easy to be swept away by the positivity when the markets opened.

Everybody pop to miss you, the less seeing people want to do to sell once you believe in the market again, when everything seems wonderful, how could you ever want to sol stock in three? We all know you supposed to billow in cl, hi. But in practice, that could be a lot harder than in sales.

This is why we constantly teach you the disband selling in the strength when you join the clumb, because we do IT all the time in the travel trust would peel some. But I know the feel you're sit, they're watching the games rolled in. And if you like, selling from stock would be the most same thing in the world.

Because what happens, this really keeps going doesn't matter. We saw in the strength, but we also never sell out. Once that way, timings less of an issue, take some off.

And if the rally holds up well, you can sell more later. The name of the game is preparation. While there's no real way to prepare for rally other than by only stocks, you can use a rally to prepare yourself for potential downside in the future.

Little camera, intuitive, but IT works best time. Just a portfolio like that is when stock are going hard, not in the going lower. Think about what you will need of the markets south and consider what you can do for your portfolio today, the day of the road that you couldn't do yesterday, the same latus that you can sell part.

Just take a venge of higher Prices. Remember, we never ever buy or sell all at once. That's not my style.

But on big up days, you can sell in large of increments in the rest of you are going to go through the whole made money rally playbook and explain what to sell, how to sell IT and why are so. But right now, here's the bottom line. When the stock markets had a big short term on short time, they Carried away by the optimism.

Instead, keep your head on straight, check your emotions, focus on a long term and think about ringing the register. Special stocks that would be getting too high. More on that later. Let's go to Michael and passive of this.

Michael a jim guy a this is Michael filly burbs. Um a i'm looking to sell my house, uh, for about five hundred thousand and i'm buying a new place for about three fifty OK. And by the time I am all done, i'm probably gonna a have one hundred thousand hours to invest for my retirement.

which I have.

that I am looking to what do I do short term high growth and what do I do long term dividends? Like.

okay, okay. Now my back love, I am a different kind from most everybody else. I want to battle my long term life.

I want to be able to say, look, I think live long and very. I think, I think this is the great C. E, O of blackrock, I think that you should be buying dividend stocks.

I'm trying to urge you to not move in the cash. Dividend stocks are a great way to protect yourself. Try to pick months that are four, five percent, and I think you'll do very well and you do IT yourself. I knew you can build this.

Steve kansas, please. Steve jam, you do.

I am doing well, Steve, have you?

I'm great. And thank taking my call.

sure.

Gym, by the way, andy reads says number three this year.

I love IT. When I say code trees, the best coach, tell me, read some believe, or what a great family, how can I help you?

So jim, i'm hidden to retirement at the end of this year, and I have been invested on my life, one hundred percent equity, no bonds. At the begin of twenty twenty two, I moved about forty percent of my portfolio into value. So i'm a sixty, forty big like growth value, big, big growth all of my life to the most part. What is your opinion about staying with that type of the sixty? And I ve IT is .

right in my wheel. I would not do a thing I think you're doing IT right. I was so RAID and you're going to say i'm thinking about switching twenty ba 2 co S S。 The short ter mates are high.

I get that. But I like your position because you're betting with your life, not against your life. And that's what I teach people to do when the stock liers had a big short term run.

Please don't get Carried away by your optimism. Instead, kick your head on straight was the long time. But also think about reading the region special socks that might be getting too high and I know you owe some that real big right.

I'm give you everything you need to know about market reales with my bad money rally capable. Thank you. How you can tell whether you take you too much risk when you should use race, race cash and the things you should never do in a Green tape. So stay with cream.

Miss the money, follow adm. Cramer on x have a question. Tweet cramer, ash tag mad mansions, send you many. Emails to a mad money at C N B C 点 com give at one hundred cnbc that come。

Cnbc has quick and easy to understand business news updates at open midday and close every weekday, markets, money and more from wall street to main street. I C N B C, Jessica adding, follow and listen to see nc business news updates wherever you get your podcasts.

People always want to help in the market cells off. They want me to tell them what to do to vitalize their fears. When stocks get hammer to investors freak out, they panic, or at least they want to panic.

I think that's right. I mean, I obvious ly don't want you to plan, but that's what people are doing. Many don't know what's going wrong. You can easily handle all the trauma, big losses and even the smartest Operations, once of expert advice.

But after more than four decades in this industry, I can't recall single time when someone come up to me and plantier ly as jim, the markets rally like crazy. What the hell do we do? Hey, that's unfortunate.

Just as you need a playbook to deal with the clients, like I just mentioned, you you rather ly playbook, a guide that tells you what to do in the markets having a big short term run, not so off, but run. I never received wisdom that nobody wants to help the rally, but you need to reject that idea that people only need help in the market. Scouser, there are all kinds of mistakes you can make when the stocks are going higher.

In fact, the rally playbook might be more important in the cell of playbook only because so few people think they need one. So here's my first room for handling a rally. Always be really, really, really tough when your I just down this, but on the big update, the only time you should be harder on the stops you own is when you're in the miss of a brutal decline with no end in sight and the needs of circle the wagons, meaning dump everything you aren't thrill to own and use the cash, your positions in the stock where you have the most conviction.

Obviously, that's the worst case. How exactly do you get tough in your purfoy when you need to give IT every one of your stocks the harshest possible evaluation? Suspend the benefit dealt, assume everything you own is guilty to prove innocent, focus on the worst quality of your stocks ever, size the downside, make each and every company you own proof you that is worth holding all over again if this trick you was silly, even unfair, your favors stocks alone, you explain, please, what a good day or a good week.

You're ready to fall above with your positions because they made you so much money. That's typical, but it's also some mistake. You can love your space.

You love your kids. You can love your pets. I like one. You can love your country, you can even love your car, just as long as you don't become a number with your stocks.

Silly pieces of paper that you boy for the sole purpose of making money. They're not gonna ve you. In fact, when more in the miss of big role, you really shouldn't give your stocks too much credit for making your money, unless they dramatically APP for the rest of the market yet.

Even then, you need to give your stocks a hard time, want to stop you a fortune, the Normal reaction is to like that stock or like IT more. However, think about this most of the time. You should like IT less.

But the simple region that stocks get more expensive when they go higher during a major market, why rally? Unless there's some serious value enhancing good news, your stocks become precious and therefore less viral. If you don't know, you know this, right, you look at IT that sucks up too much.

For example, no matter how much you like mi soft company and I do mics oft, the stocks a lot more tracked to say two fifty and years, three fifty, correct? In other words, in the wake of a big up move, your entire profile just got less attract. Like I could explain, the members, the cbc, investing club, Price matters.

And when the stock Price goes up, the risk reward becomes worse. okay? Valuation makes IT more value.

You made money which is White more after, but you can't let that prejudice e in favor of any particular stock. Just like black jack, the cards have no memory. People why your stocks they have gone up when the market was worrying.

That doesn't have much bearing. But where IT goes tomorrow does IT. The second reason to get tough in your portfolio in a rally is that you can figure out which ones to sell and sell hard.

I can, on the train, all done, but I recognize ideas. To the contrary, you ation and rally. Everyone else is buying like crazy. You feel great about your thoughts and you certainly don't want to sell, but you have to because there's no Better time to sell them during a major shorter move, higher.

Oh, and by the way, this selling doctor apply to everything, even mutual funds, if you have organised shorter gates, is okay during the register on some of them. I like that again. We all know this is sure on some level, we know by low sell high. But that's hard to execute the moment you have to know, because the facts have borne IT out for years, even as nobody likes being told to sell a winning stock into a smoking hot rally.

So how do you fight your instincts? How do you get to a place where you can sell in spite of your emotions civil? Just like I said before, you get tough in your portfolio about your stocks and demand a lot more for them, then you really would, especially since they were expensive than they were day before because they went up.

Now i've got a very special way of grading my stocks that i've used by hedge. Five days every week, I ranked the socks in my child trust, which you can fall along with by in the cmc vesc. I really do.

I ranking from one to ones are stocks you would buy at the current Price tools, or stocks you would buy if they pull back, freeze stock you'd sell at a higher Price and force stocks. Well, let's say you don't want to take any action on without more information, period. And when they come this ranking system, a rally has a way of simplifying things.

Prices are up. So the former ones, stocks that were worth buying at their current Price suddenly become two stocks only worth by and pull back because most things we've gotten too expensive at this Better keep you out of dry, wait for settle off down the road before you do any more by. Meanwhile, a lot of your three stocks that you want to sell, the strength become for stocks.

You don't want taking action with that formation. Now this is just a preliminary approach to what you should sell in a short term. I I will give you more details later in the shop.

The reason we rank our stocks like this keep our emotions in check. We exactly understand that we frail, okay? So we buy low. We fell high instead of buying high just because IT feels good at that moment.

Most people, for reasons we don't have time to go into out now, least really enjoy buying stocks but see selling them as a defeat. But rain the registers, not a defeat when you're getting top dollar Prices during a juicy rally. First though, you have to put yourself in salmo and you start doing that by getting tough on your portal folio bottom during a big up day and after.

Don't get swept away by you oria. Okay, don't listen to the buy and hold doctor. This says is not work if you actually want to buy a little profit of merchandise, because the whole point of only stocks is that you're supposed to sell them when they are go higher to make money, if the fundamental aren't changed, if the company hasn't improved and IT might have gotten too expensive as the stocks because of the round. So when the markets worrying, give your stocks a hard time, please hold them to a higher standard and bring the dawn registered on some of the stuff, both the names you write, the beast, and, of course, even the ones Better up the most, their moneys back in the world, coming up one.

to preserve those traffic after a big rally, cramer revealing the next after of his playbook, and how to build the most important part of every investors portfolio next.

Who are for the emperor of in america? S.

K, you got me around off the now. Thank you so much .

for all you do for us. I enjoy your shell in .

the kind of very entertaining and informative.

I wash your first ever united six PME10 plus， join the C N B C investing club and stick with cramer around the clock.

Cnbc has quick and easy to understand business news updates at the open the day and close every weekday. Markets, money and more from wall street to main street. I'm C N B C, Jessica, and follow and listen to C, N, B, C business news updates wherever you get through podcasts.

Tonight we're giving to the mad money valley playbook. Teach you the disciples will let you take maximum vantage of a big update over over again. I've been telling you that short term relays are opportunities to not by exon the version of something made some really obvious, but can be hard to put into practice because IT runs canada.

What our motion say we should be doing when stocks are worry. Of course, most people don't like to hear about selling stocks, except when they're panic and they think the whole world's calling part, then they want to be given permission to sell as they want to show everything, even though that's almost always a mistake. Generally, most especially wanted know about buying, especially what to buy.

But you know why you should have a plan for selling every single one of your stocks, even the best ones, and you should make that plan before you ever purchase them simply as part of the process. People invest means knowing when to get out, and it's Better make those decision for him rather than waiting until the heat of the moment. Of course, you always want things to stay and never have to sell, but you know, listen to be on this.

Stocks and good companies can get too expensive. IT happens all the time and a big relish stocks of big companies also get too specific, but it's easy to sell something when you know it's Better, isn't much harder and mode something you genuinely like for legitimate reasons. For just twenty twenty one, which is protecting the rally in first going cloud based software stocks, the whole group got too expensive, but the low quality specular names with no warnings and the higher quality establish copies with great numbers.

Well, they all want a and then IT includes many cramer faves like sales force in service. Now they're got too hot. And he had to sell ministration because after the federal are warm inflation, the cloud software cover spent the dex all eleven months, getting more all the proper once help up a lot Better.

But there's dogs still got a visceral, and you could aside step much of that pain if you simply ran the register on the way up. Now let me make this clear. Selling into a raly is not solely about turning a profit then.

And there obviously, we're looking to buy low and sell high. So big up there to gives you a great in sell. But the best reason that takes some profits or culture your losses during rally all boils down to what I talked about at the beginning of the show preparation.

Let me I believe you should be prepared for the bad days down the room, maybe because i'm a glass have kind of guy, except of course, from being a glass full kind of, but most of because the bad days are justice and have the most of the good ones. And what's the best time to get ready for these inevitable downside? How about turning or right after a big update that's the perfect member to take something of the table race cash.

In other words, a short term, ley is your best oppor, you protect yourself from potential downside. Trust me, you get the most mileage out of preparing for the worst days on the best days. Don't get me wrong.

And that doesn't mean you should sell everything in any kind of strength. That would be self. The feeling IT doesn't mean you should believe that all rallies are a meal and not to be trusted.

Here there's an army stages and being your money matches. And commentators were concerned ager to convince you that every upmove is temporary, or even losy alchemy. They want to scare you. I am not one of those.

I know the planet relations of staying power and and can take you higher and higher and project you will installed drive without that light and casino event, you can believe in a rally and still use a big update to take some profit. That's how you get ready for days in the future that likely won't be good. There's no cognitive directions here.

We're just trying to baLance the concept of capital. You need to keep money secure with capital appreciation. They need to grow your money.

Both of these are pure necessities and they're not always mutually you use a ready to take a profit that when the market comes back down, you'll have cash on the size lize cash you can put to work buying stocks that have been suddenly put on sale away the rilla. We were a prolog to the cell of playbook. We use the rally to stop how everything that will need in case things get bad.

And one of those things is cash, various cash. Yet bomb's citizen of the united states, I always pay my respect to the one two king, which is cash pay. Cash is probably the single most important part of your port foil.

Most of the hometown S I talk, you do not know this. I have people all the time tell me the full investing, many every time of their money that's earmarked for investing in part in stocks. And whenever someone tells me that they always think is a good thing, cash, my friends, who is what makes everything else possible.

Back of my own hash friend, I would never ever have less than five percent before in cash. And i'd tried to get IT up the time if I could have, especially after a nice run. Cash is flexibility when the market pols back giving you an opening to start a position in the stock you like or you take you, you need to have some cash on the sidelines and order do you're buying.

Otherwise you have to sell up the on on the fly or use margin mean power for your broker. And that's something I never recommend to, is to rescue hey, speaking modern a bit really gives you the best opportunity of margin. And started investing like the same person rather than someone with a financial death wish.

What is going to doing this? Finding the rally? We would like to be heavily invested with a little cash for the rally, trying to call one advances too difficult, but the best time to race cash, which many of you absolutely must do if you're fully invested and the rest of you should want to do, is right after a giant move up.

This is why we always have some cash and satellite travel trust. Here's how I think of IT. You're profile cash positions like clear cost guest tag.

You don't have at least five percent cash and you run or an empty and you Better fellow up the next time you SHE is to whenever you sell to race cash. And we will talk about that after the break, you get a much Better deal after rally. But listen, I not saying that rallies have a great time to cat going into all cash.

Not at all. I'm saying I believe essentially raise some cash during her after rally, everyone some really that's that's the goal. I don't care how much you like stocks not selling something to raise the cash when the markets making IT easy for you is downright reckless.

With the child l trust, i've taken my test at times four, around twenty percent when I sense too much eufor a when the market eventually pulled back, put that swing cash back to work and stocks we like a lot more than the ones we previously sold. Even so, the quality company is you own isn't enough part of the equation or IT isn't a part of that. actually.

It's the Price of the stocks that matter. And some will get very extended in every rally. So trim them, you can buy them back later with the cash you raised from selling.

That's the entire point. The next time things goes sour, you'll have that every part of cash you've heard up to you feel great. You will have going to buy into week as you won't feel happ like so many who don't do this.

This isn't about getting a great deal, people about protect yourself. Bottomline, the next time we get a big update or two, please, I am begging. Use the strength to raise some cash you might not know IT, but without cash to portfolio, zero flexibility and the best time to raise the cash is when the market is on fire.

It's to doing a viginti ing. mr. r. cramer. Thank you your time today as the i'd be grateful for any guidance you could offer students like myself as I prepare to enter the extremely competitive field of high finance.

Thanks so much for advice all right um work cord, work cord than everybody else. If you see anyone common in seven comment at six and working in six command at five, be the last personal leave. Okay, I don't care.

Why be the last person? Look around, if ever, if anyone else is so there you stay later. That is what the bosses want to see about.

We do some work. You're there. I mean, no, I don't want to play in salt there, but work harder than everybody else. That's the secret of the work from home people run and .

south colton run.

Well, right? How are you?

Uh, as best can be expected. Hey, I M seven years old, I have retirement account grow in A I R A roll over OK .

couple years ago.

I reduced my equities are a hundred thousand in each account and bat treasury's rought thirty day treasuries. And so my treasuries roll over every week. Me, they pay me hours, getting ready, start thinking about getting in a little more back in the equity wheen yv 配音， i'm kind of a little bit on the edge.

You give me OK, right? You are like .

many people .

in this position, which is that you kind of believe that that will you earn so much money in your cash? Why should risk being stocks? So just what you're gonna do, you're gonna wait to down seven to ten percent move before you take off a quote, your cash put the market unless you get that the client, I don't want you to do anything, stay where you are. It's going to london or I enda.

Hello, ba, tim.

And what's .

going is so wonderful to talk to you. I call you mr. Magic money maker.

awesome. This is thank you for your wisdom and this is my question. I'm a retired possible employee who work for forty five years. I have no financial, uh, investment knowledge. I wanted to know, how do I buy stocks? And I wanted to ask you, should I try to invest my uh with savings plan money in uh S M P index phone or magnificent in seven or in video or or in video.

我 you sweet to to uh to trust me， I do want you to start with your first ten thousand dollars in the index fun. You'll buy IT this follow way you will put if you can, if you can put A A couple hundred hours to work each month. I don't want to know that once.

okay? I don't. If the market drops pensively being more than ten percent, I want you to take the months would have bought two months from now and put IT to work with that current month.

That's how you're gone to get the best places, stick by that discipline and don't go any faster. And then i'm confident you'll get good Prices and not feel like somehow you got heard. I love in video, not the right method of diversification when you're facing a big update, here's what I want to do.

I want you to use the string to rather little cash, I know. But without cash, your people, you has zero, zero flexible. And the best time to raise cash is when the market is on fire.

Now when is going lower? There's much more made money here. You probably think it's code when your portfolio update.

Ms, even a big realize. Guess what? You be wrong. Don't worry, i'm explaining why.

Let me take you all your burning market questions with my investing club colleague, jp Marks. So stay well later, mr. Or thank you. Thank you for everything you do.

You've such a wonderful source of information with your teachings. I to say, thank thank you for all your and taking us from our health, your advice. Let me quit a job that I hate that I love you to .

thank you for everything do. Thanks for making this money more important. Thanks for keeping from losing money.

You're watching the mad money rally playbook where i'm teaching you the best way to take advantage of the market. That's a big over a short period member that's casual, just a Spike, right? If you're just turn in. I'm deeply wounded by the cold shelter you gave me when we, you lovely, chose not to watch me, at least watch most the show I know you did IT is a caland this attempt urt my field IT worked open, happy back business. Most of I rally, play basketball.

About what you can benefit through the benefit from higher stock places, how you can use the rally to set up for the inevitable rough patches that the markets runs into solar or later by raising cash in which stocks you should sell in order. Do IT the way as part of my rally play, because is a little different. It's not about what you can do during or right after rally, which we've already covered.

Instead, I would hide what what a major move higher can teach you about your portfolio. Israelis are incredibly illuminating. I'm not to worry about anyone seriously underperformed the average on a big update because that's something you can easily study and fixed by getting more exposure to the sectors that were up the most.

No, what should get you truly concern is watching your stocks dramatically upper for the hours dramatically up. That's the keyword in mark wide value. You heard me right.

Making too much money on a given day can be a problem. At least a red fg, a sitting where your games are trying to warn you about something is very counter to prepare with me. The warning is very simple.

When you're put foo leaves the averages in the dust on the day when the market tory IT make sure take you way too much risk with your portfolio. And I don't strike many of you as as most investor RAM. I get that in the fact that I do this show every day, even though I probably doubles my odds of a heart condition, doesn't help my case by taking an a nessa. Risking your portfolio kes absolutely no sense.

And watching how your stocks move in a market White rally is a proof way to figure out if perhaps you taking on the this risk, say the really comes and you make much more than the averages, the question why where you're using margin borrow ing money from your broker to get that extra bit of leverage that will help you crush the average and rally, but will also get you crushed by your losses in a sell off that is not worth the people. What else could cause your portfolio? Matic, ally APP, for the benchmark, a powerful market wide rally.

Well, IT could be bigosh not diverse for enough. That's a way to make bottles of money in a short frame time. Rame, let's see the rally.

LED by, is LED by tech? okay? In your proposed fifty percent, you be a big winner right for day or two. But those games are a camera. They went less.

Not only that, but the outsize profits are a huge warning, screaming at you to sell your dark tech positions, maybe trim back at least, and maybe called me up and play. I might diverse y if you are diverse y if you obvious sockets in one basket, then you could get wiped out the heartbeat. Just ask all the investors who loaded up on cloud software stocks are electing vehicle place before they peach in november twenty twenty one.

Those people then got blown out the whole business. They just got out with massive voices they couldn't take in. They were all beating.

The stuff is out the benchMarks and lay twenty, twenty and the book of twenty one. They were making too much money. That's right, too much money. Just like take investors for the dot com bubble, over two thousand if they pay attention to this rule.

Something we remind you of constantly, if you happen to be a member of the cbc investing club, then they might have been able to avoid the damage from the hideous tech losses in twenty twenty two. They could have adjusted their holidays and lightened up on their biggest winners so that no single sector made up more than twenty percent of the world foil. So let me give you the bottom mind here.

The best time to figure out if you're making too much money, meaning you're taking a dangerous ous about rest, is doing a big market wide rally. Use these runs as diagnostic test. See if your portfolio as tool diversity and too much risk or if it's a okay, make money to be right coming up.

Have a fear of missing out cram's giving you his guy book on how to keep those emotions in shack after a big run for the market. next.

For him, I love you, man, after watching you from .

the day one, thank you for all .

the wonderful voice you provide us.

You so much watching your your G, A, G. Thank world. We consider you the money market maker, and we .

thank you for .

all you do for you. So and we think is the most entertaining program and city.

Like i've been saying all night, you may not think you need you need help at all when the market seems to be elevating, but the reality you probably do when starts go up, especially when the a big people get emotional and emotions make us bad investors, period always does. And that's why the mare money rally playbook is all about 了， helping you combat your intuitive emotional reactions so you can make sound, rational decisions.

By the way, we teach us disable same more detailed to members, the cms investing club every single day as we managed channel trust. Remember, when you catch a pig up, data is selling opportunity, right? You want to use IT to unloaded some your best performance, along with your liars and the stocks you wanted to get rid of anyway.

Also, you can raise some cash for a rainy day. That's the most important thing to keep minor for major move fire, which brings me to my final rally rule at a moments in raising cash is essential. Spending cash is absolutely prohibited.

After big one day move, I know you're gonna be tempted buy some stocks the next day. I know this big up days make us more bullish. Investors love to chase rallies the same way dogs like the chase covers.

When you're less experience in the market was having actly, all your stocks produce huge gains. Of course you're gonna feel like by, but that's another case where your feelings are the U. S.

Strain for good investing. Do not buy stocks after the average of just bite. Don't chase be marter than at the, I wanted to take advances of rice.

But when you buy stocks the day after that, the ones death that they just got marked up big, you're getting the rally take advantage of you. I know you're doing this too. I I read on apps for my twitter actually equipment all day after every big rally.

And that's when people are just most excited. That's when they want to open their walls and art. The stocks don't ado IT.

I know this sounds like common sense, something any clown could figure out, said after cramer fave bozo. But I don't waste your time on the show. Of course. You know it's silly. By the day after rally or after stocks just had he run, you know, IT right up moment when you get swept the way by your evora, which is a mistake we all make, including your truly, that's why you need to play book. You need rules to prevent yourself from getting swept away in making mistakes that you did your obviously going to regret later on.

So please, if you want to buy a stock in the market, just had a mark on, do me a favor and tell yourself you is IT just say dinner I miss IT and take a pass at is IT very less keep your battle on your shoulder and wait for a Better pesh and cheap er Price is the smartest thing you can do in that situation. And I could save you a lot of pain down the road. Here's the bottom mine.

I always tell you to buy in your weakness and sell in the trend, but that really means you need to sell some of your winners at the moment. Win, they're at the hottest and you probably shouldn't buy anything when the market feels like it's fire. If you do your new stock, things will likely be consumed in the aftermarket of that fire. And you want to much to show for all that aren't one money that went up in.

Rep to what you show, I have to thank you for making us money. When is to be made?

Our world is a Better place with you. and.

About this entire showed me, if you explain you how to protect and play your port poil in for market, I want to teach my viewers, but I also love learning from them, which is why I always say my favorite part of the show is taking questions right from you. And I joined by jeff Marks, my portfolio and s and yes, part room crime, the cnbc investing club. And we're going to answer some of your burning questions.

Are you a little inside what we do? If you do not remember the club, you can just scan the code or code C, C, doc com slash investing club to sign up. I hope you do. Let's take our first question, jeff.

All right.

first stop. We've got, oh, when do you recommend investing in an IPO? Now this point, jf, i'm going you handle because there's nothing harder.

Yeah, look, I think if you can get in on the deal, that's always preferred, right? But if you are trying to uh, invest in a new IPO, just make sure that the valuation is in completely out of wac with some other companies in its peer group. One more consideration, lockup s always something to be mindful love.

When a company becomes public, often times, uh, the the the employees that the company, the major shareholders, they are restricted from selling stock. Once they become unrestricted, sometimes they unload their shares, right, a way that could create pressure on the stocks. So just be mindful of lock ups because if you are little bit patient, IT may lead .

to a Better Price. I want you for but yeah understand that I get very enthusiastic and jeff is to check on me all the time. What happens is some many of these ipos are so exciting, but that should never dictate why you buy something.

Excitement dos count next up, any california's hyg ym, you please explain how investors should be gap or nine gap only. Thank you. This very complicated, but I spice IT to say that I like why are known is traditionally a generally accepted accounting principal numbers in other ways. I don't want to hear fancy ways to make earnings when there is a traditional way that I learned in coming. And you learn to sure that all around gap .

is gold standard. I mean, at times IT is helpful to look at non gap because they will exclude some one time items that maybe a give you a great apples to apples comparison of earnings. But sometimes we know imagine teams, they like to take a very liberal view of those non get earnings. So you have to be careful, right? And sometimes around that.

and we don't share the notion, liberal view, there are so many companies out there that have straight port calling. Why reached to someone that doesn't I want to get a tod, minnesota, who is concerning what to buy. Doesn't IT only buying ash, adding to a stock when it's below basis dogmatically ensure we miss all my metals and participate in downturns.

I missed out on news runs in the four because I have had to add a partial position. This is a and art art, not a science CER. And what happens thought is that we end up, yes, we're going to miss them.

That's absolutely true. But we care more about the downside. If we stop the downside, if we protect against the downside, the upside is going to take care of itself.

IT is painful for me sometime again. And we've talked many times about we refused to violate basis. And this is something we fight every day to to the nail. But the fact we have proven evidence that we've save more money than we would look.

I like to apply A A strong interpretation when you're just putting on position on over those first couple weeks, maybe months only because you never might know what curve ball the market may throw at you. In that case, just being a little bit patient saves you. But in terms of when to violate, well, if you ve been owning the stock for a while and you've had a lot of good news come well, then it's just a Better company then from where .

you first started buying IT so that, that could a way I know that it'll be situations they're miss, but you just heard while we have to stick to our discipline, next up we have a question from Karen in new york. Yes, how do we find the rsi and is a reliable indicated for making investment decisions? Yeah this way the wells of strength index, I do like to look at IT, but i'm not wait to IT and we can find IT in the various different places. I don't know. I tend to just look at the chart myself.

yeah. Look, you can find IT on your trading platform. Keep mind our side. Uh, I could single when a stock maybe overbought or oversold, but overboard doesn't necessarily mean sell and oversold doesn't necessarily always mean, by the end of the day, the fundamental or what matter most. And if the stock is oversold for a long time, I could signal that something is fundamentally wrong.

very true. And we looking for entry point is a tool. Again, what I find most important entry point is whether i'm buying expensively or less expensively.

And as far on concern our side is just another arrow in the quiver, but not the most important one. I'd like to say there's always more marked somewhere I pumped to find IT just for you right here, made money on june craymer. See the next time.

All opinions expressed by gym m cramer on this podcast are solely cramer's opinions and do not reflect to the opinions of C N B, C, N B C universal or their parent company or a phillida's and may have been previously disseminated by cramer on television, radio, internet or another medium. You should not treat any opinion expressed by jim crime as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of ion cram's opinions are based upon information he consider reliable, but neither cnbc nor its a fillets and or subsidies where its completeness, accuracy and IT should not be relied upon as such. To view the full money declared, please visit C N B C dot com forward flash mad money disclaimer .

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