of people who just buy every stock i recommend. i do not know who these people are. and the press would probably hound me. no matter what. because i can't stop myself from shooting my mouth off. but there is a serious point to be made here. i think it's important to show all of you how this show is supposed to be watched. how it's supposed to get you started. this way i can help you get the absolute most out of "mad money." and to make sure you don't hurt yourself because you haven't read the user's manual jim cramer's "mad money," watch tv, "get rich or die trying." written under my famous alias, 50 billion cent. tonight's show devoted entirely to teaching all of you the best way to watch "mad money."

most shows do not need a guide about how to watch them. this one does. it's different. there are the right ways and the wrong ways. there are the right takeaways and the wong takeaways from different segments. the most valuable stuff, the weak from the chaff, not that i put in a lot of chaff. but for example, should you take the lightning round as seriously as the rest of the show? what about when i bring on these ceos for those phone calls on the line, am i just letting them show for their companies? do they own me? do i own them? and, really, what can i do for you? and what can't i do for you? that's the big question. you watch "mad money," what is cramer supposed to do for you? i'm night genie in a bottle. i can't grant you instant wealth but i'm also not a sad clown who just sips cheap scotch on a dirty linoleum floor. i can't make you rich.

i can't make you good-looking either. although if you look at this some of the stuff that allergen's got i have to tell you as a 63-year-old man, they've got something for your wrinkles. i am here to give you advice, advice. i'm not here to stand up on a soap box and pontificate. that was my old show. uh-huh. i don't try to tell you to do this, do that. i don't tell you how to think even if i sometimes sound exactly like that's what i'm doing. i've got a lot of experience in the market. and even though i am a self-hating, generally self-effacing guy, i'm not ashamed to say that i'm darn good at picking stocks and understanding the market. that's my -- that's my track

record. now there's always going to be naysayers who say that was his track record. he stinks going forward. well you know what, that's not what the probabilities say. i also think i'm a great teacher but what i'm not is your financial dictator. your portfolio's equivalent of stalin during the first five-year plan. or mao's great leap forward. >> the house of pain. >> heres what i'm getting at you can't reasonable expect to do every single thing i say and make mad money. in a given might i might recommend a dozen stocks excluding the lightning round. clearly, you shouldn't just buy every single one of those stocks. you shouldn't follow my advice uncritically either. but trying to do every single thing i mention is just the wrong way to go. it'll leave you in tears. if i say i like a stock, that doesn't mean everybody should go

do this -- >> buy, buy, buy. >> if it doesn't -- it doesn't mean that if you buy that stock you will absolutely, positively, make lots of money. that is not. that is not how the game work. i'm going to be wrong often. obviously i wouldn't bring you any ideas unless i thought they were right. but unlike the people you see on tv, any decent money manager knows that you're going to have some losers. some of them that just go off the track even after you told people -- >> all aboard. >> -- you're welcome to write me some hate e-mail, if i like a stock and it goes down. go right ahead. frankly i'm used to it because some picks are going to be wrong. but you need to get it into your head that you're always going to own some losers. and this is especially true if you're running what i really want you to did a diversified portfolio. that has to be. but you've got to accept, as i

have come to accept, that every now and then you're going to have a serious blowup and you're going to have stocks that don't do anything. so we know what you're not going to get out of the show. no getting rich quick. no stock picks that are right every time. not as much handholding as some of you might want but that still leaves a lot of room for me to help you. a lot of my stock picks are right and should continue to be right. listen to me, do your research. and if you like them, i believe you can come out on top. "mad money," though, isn't about the stock picks. i mean that's what the precipice is all about. no. "mad money" offers the stock. you don't go into the restaurant and order every item on the menu. you can expect me to educate you. nothing is more important than learning about the market. thinking outs the tricks and the methods that the pros use so that you can use them yourself. this is why i have a give a man fish, teach a man a fish gag almost in every show.

it's a knock-off of what you need to do. it's very important they apart all of my ways of accumulated wisdom of how to make the market work. that's the "mad money" manifesto. i'm trying to make you laugh. remember, nighttime show about stocks? i mean, come on, you know what people will do if they do not get entertained. >> boo. >> they'll give me the hook. also, something else i like to do, i want to unite the world's workers. workers of the world unite. you have nothing to lose but your chains. i don't know, work for a while it works. the rest of the show will be more detailed. how should you watch different segments? what do i consider important about what i'm saying? what should you do with my advice? there's a bottom line every

time. the bottom line this time, this show is not your get rich quick ticket but that doesn't mean it can't make you mad money. let's take some calls. let's start with kathy in new hampshire. kathy? >> caller: hi, jim. thank you for taking my call. >> my pleasure. >> caller: i love the show. >> thank you. >> caller: i'm in the process of reading your latest book. >> thanks a lot, kathy. i mean it. a lot of people say nice things about the show. i don't say nice things to them doing it all the time. thank you. >> caller: you're welcome. and i truly appreciate all of the efforts that you make to inform your audience. please keep up the good work. >> thank you. i'll still try. >> caller: my question is this, you make the best of breed sound so appealing on the show. anything wrong with building up a retirement portfolio consisting of just best of breed from different sectors of course? >> as long as it's from different sectors, i think that is an admirable way to go and let me explain why to people who are new to the show. a best of reit company will bounce back if something goes wrong. that means as it goes down, you can buy more rather than have it than just sell, sell, sell. because you know that the

company ain't so hot. let's go to jim in kansas, please. jim? >> caller: jimbo, a great boo-yah. >> that's what the show is about. >> caller: i'm a value kind of a guy. >> me too. >> caller: i know that you like stocks to pay good dividends. anyway over the last couple of years i've been able to buy and sell a handful of stocks that basically have cost me nothing now but yet they pay me good dividends. when should i sell them? i mean short of us is spending the dividend payment i really like the idea of just keeping the things and just collecting the free money. >> jim, you and i agree. one of the reasons i like dividend-paying stocks is because that's a company -- those companies -- have cash. i'm a cash guy. when that dividend goes up, talk about the verification of what i'm really looking for. let me augment you, jim, not

only i do want dividends i want companies that pay more dividend each year. those are winners. those are what we're staying with. if they break their policy, we've got do some work. maybe we have a damaged company. not a damaged stock. let's go to cindy in california. cindy? >> caller: and a very happy and sunny southern california boo-yah to you, cramer. >> could there be anything more year-round, less seasonal than that kind of boo-yah? what do you got? >> caller: i'm an old investor and you've taught me a lot of new tricks and i want to thank you very much. >> thank you. >> caller: you talk about pigs getting slaughtered. >> oh, yeah. >> caller: okay. however i'm a nervous investor. and knowing that, should i still be looking for those tops that you talked about or is a 20% good enough? what point do i become a hog? >> cindy, let's institutionalize this point. thank you for this question. i like to take the top and

bottom out of the equation by selling on the way up and then when you got your cost basis out then you don't have to worry. i say don't wait for a top. anticipate that there will always be tops and sell on the way up. but keep a little bit. when you're done, pay them for the position. introducing the all new chevy equinox. with an epa estimated 32 miles per gallon. and up to 600 miles between fill ups. it's the most fuel efficient crossover on the highway. better than honda cr-v, toyota rav4 and even the ford escape hybrid.

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this is a unique "mad money" show. i'm not trying to teach you about the market tonight. no. we do that a lot. no, tonight i'm trying to teach you, the viewer, how to make the best use of a show that's not like a lot of other shows. of a show that gives you ideas and teaches you but also pointedly tries to get you to do some work. i want you to use the show. i want it to help you make money. but you need to know what you're doing first. most shows you put them on it's like, hey, i get it. this show isn't like that.

you need to know what to watch with cramer who is the supreme arbiter of truth, justice and significance thinks is important. if you approach this show as a source of stock picks alone, i don't want to say you're ruin yourself but you're certainly not making good use of your time. if you'red into a zooidded that the only thing that matters in had show is what i recommend in the lightning round i have to tell you where do you think that i put all of the thought in the lightning round? or in the stocks they talk about at the top of the show and after the lightning round? people don't usually think about how to watch something. it's one of those weird questions. doesn't make a lot of sense. until you've chewed it over for a while. how should you watch cramer if you're trying to make money? i'm going through the different kinds of segments we have on the show so that i can tell you how i would approach them if i were in your shoes. let's start with something standard, generic "mad money" story. cramer says buy such and such stock.

he tells you the reasons why. then you think, well, i don't know, let me mow it over. let me do the homework and then you buy the stock. >> buy, buy, buy. >> or you don't. >> don't buy. don't buy. >> is that how it's supposed to work? not at all. no, no. no matter how many times i say this show is about education, no matter how often i run naked through the streets of manhattan in the dark of night screaming that "mad money's" educational, people still don't want to approach the show that way. i'm going to do a little dissection, a little deconstruction to hardly misuse a horrible term that i got so

sick of when i was at college i decided i was never going to use it again other than just now i want to talk about where i recommend a stock. it's rare for me to devote an entire segment of the show to saying buy "x." this is an example. i don't mean u.s. steel. ipusing "x" in the mathematical sense for once. if you want to use the stocks they like you are welcome to listen to that takeaway alone. i think that you are missing the parts of the show, the education. how i would get the most out of the story where i say i like some stock. first, i would ask, what's the reasoning cramer's using behind liking the stock? the rationale behind a buy is always more important than the particular stock you might be buying. so what's the thesis i give you? is it broad and sector base? is it company specific? if so, can we find those same positive traits in other companies? usually i talk about the sector when i recommend a stock. it's more important to know what i think about a sector than it is to know what i think about a single stock. you want to listen to that. cramer says he likes cable. that's much more person than cramer says he likes comcast. and there's a mathematical reason. there's an empirical reason. 50% of a stock, 50% of where a

stock goes, is determined entirely by its sector. if i pick a sector that's bad, probably the stock they recommended in the sector's no good. that's why i spend so much time trying to find sectors i like. i'm usually trying to teach a bigger lesson when i single in, when i hone in on a particular stock. either something about the market in general or about the market at a specific time. if i recommend a big stock with a greater dividend. i like stocks with big dividends which i really do. dividends like hips rarely dissemble which is a corollary to what my kids would say. if i am telling you that i think i should buy a secular growth stock, one that doesn't need the economy to go higher something that you would find in the grocery store or the pharmacy, something you'd find in your refrigerator our your medicine chest, the bigger lesson isn't -- buy procter & gamble.

no, at had point it's in the business cycle, you want to own these kinds of secular growth supermarket stocks. sometimes i'll even set up an aisle. sometimes i'll clean up on aisle 4. i'll talk all about a lot of stocks on this show, okay? it's always going to be more important that you catch whatever big-picture point i'm trying to make. this pen you latch onto that one stock. when i hear people say when i walk down the street "hey, cramer, i heard you say haynes." that's great. it was really a story about aerospace and steel in which i used haines as an example. i did a series on stocks that i thought that were great private equity takeover targets. i had six stocks but they were not the takeaway. the takeaway was that private equity funds, like stocks, with big cash flows and operations that could easily improve by taking the company private. so why don't you look for those characteristics when you speculate? we love to speculate, inform speculation. that's something i applaud. uninformed speculation -- >> boo. >> you want to get into the hallelujah zone.

>> hallelujah! >> when the market fell apart at the end of february of 2007, remember that? because china was bad, or was it the kerry trade. what was the excuse they gave? i devoted a segment to telling you that i thought you should be defensive. buy those secular growth stocks the ones don't need the economy, buy them first. buy the stock in the supermarket. that wasn't the big picture point. what was much more important to take away from the story is that

the market bottoms in thirds. these defensive stocks bottom first. that's the way it always works. that way the next time you get a big downturn you've been educated by cramer. you won't need me to tell you what to do. you'll understand how the market >> and bigger lesson is what i want you, the bigger lesson is worth what you should focus on. let's go to jim in maryland please. jim? >> caller: hey, jim. a big boo-yah maryland boo-yah to you. >> hey. >> caller: quick question for you, jim. you've explained to us many times the importance of owning stocks that pay dividends. >> yeah, you know it's a safety blanket.

it's a "mad money" lovely blanket. >> caller: it is. it is but i have never heard you tell us what we should do with those dividends. automatically invest it or pay them in cash so that we can deplore them at a better time and place? too jim, i have to tell you one of those instances where i will say you should reinvest and here is why because i have seen many account when i worked as a broker at goldman sachs that let that cash accumulate, didn't put it to work. people get sidetracked, people have other things to focus on. this way that money's always being put to work exactly in the stocks you like. i favor bringing those dividends automatically. go to wes in ohio. >> caller: a big buc eye boo-yah to you, jim. >> i like that accent. what's up? >> caller: jim, you talked about the stock buyback story. when a company uses cash to buyback outstanding stock, this is positive for the shareholder. but what should we think about companies that issue debt to buy back their stock? >> i have historically not liked that kind of buyback. there are periods where a

company might take an extraordinary step and say i want to buy 20% of my company right up here and i'm borrowing money. that's good. a lot of times when i see a borrowed money buyback what it is they'll do a convertible bond. the people who buy that bond will short the stock. that knocks it down. then the company comes in and buys it back. that's neutral. as a matter of fact, that's stupid. when we have regular buybacks out of cash flow, we like them. when we borrow money and we don't net out to anything at all, we head of. there's more to it than just buying and selling individual stocks. i want you to listen. i want you to listen for the rationale and i want you to stay tuned for this special edition of "mad money." i'm here on this tiny little plane, and guess what...

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♪ yes, you're lovely... ♪ what do you think? hey, why don't we use our points from chase sapphire and take a break? we can't. sure, we can. the points don't expire... ♪ there is nothing for me... ♪ there's no travel restrictions... we could leave tomorrow. we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters. get your new chase sapphire card at chase.com/sapphire. welcome to progressive. how may i help you? i'm looking for a deal on car insurance. i think i might have a coupon in here. there's an easier way. we've got the "name your price" option. you do? follow me.

you tell us how much you want to pay, and we'll build you a policy that fits your budget. and i still get great coverage? uh-huh. go ahead. you're the boss. i'm the boss of savings. more like the c.e.o. oh, oh. no glass ceiling. the freedom to name your price. now, that's progressive. call or click today. today, you're getting your "mad money" user's manual. although admittedly an hour on tv is a lot less useful than the entire contents of you guessed it jim cramer's "mad money," "get rich or die trying." my pen name. why use a user's manual for a show?

you sit there and say oh "law & order" it starts off with a crime and then you solve. no. this is a show -- this is a show where a guy plays around with stuffed animals. bites the head off of a bull. takes a bobblehead off and throws it off. has buttons for sound effects that are silly. hey let's be fair, this also the only show to address the effects of late-stage capitalism on virtually every aspect of our culture 14 a strict marxist perspective, and oh the fact they took seven marxist courses at harvard and of course having to mention harvard every show because i'm an intellectual. all right, i'm not actually an ivory-tower kind of guy i've noticed. nope. i'm a guy who sold ice cream and soaps in philadelphia. and ail want to do is try to help you make mad money. i can't tell you what each and every segment means. we won't get every day.

evaluating the relevant importance of the lightning round or a sudden death a boo-yah free zone. i wouldn't have any time to give you any of the important content if i did that. as it is i have to cut a minute and a half of the show for some fantastic stuttering boo-yahs. we're saving most of the explanation for this show. this one that you're watching. it's entirely devoted to helping you get the most out of the "mad money" experience. people keep joining the show. i regard it as a bit of a club and i think they want to know, what's the initiation? this. no the jim cramer experience. which i do say myself franks up with the jimmi hendrix fan. and also the hardest working show businessman post-james brown. or at least in this state of new jersey, i'm the least understood in the best. when i'm doing that wacko lightning round i'm never more

criticized when he does the lightning round. he throws the chair. i hurt my back. he talks too fast. he shouts. he hits the button. he has a strange higher register. the worst is when people take my recommendations from the lightning round and equate them with my recommendations in the rest of the show which of course the media has to do because it's so important to discredit cramer. cramer makes it so that the brokers don't get paid as much. cramer makes it so that certain ceos look bad. cramer just wrecks it for everybody at least in the industry. so before i tell you how to get the most out of the lightning round i should probably tell you what it is. as my advice in the lightning

round sound? sure. but it's not as well developed as the rest of the show and you should weigh that accordingly. if i spend five, ten minutes talking about a stock at the very top of the show, that means a lot more than i would give a stock a thumbs-up during the lightning round and then move on. and the lightning round has a true entertainment component to it. it's supposed to be almost like a game show. "the gong show." can cramer really pull this off? that's what they worry about. will cramer have a heart attack? will his head pop off? hey, it has. i know, i've been asked in the press more than once does your head pop off after lightning round? is it during the commercial that you glue it back on? but beyond that the lightning round is your opportunity to ask me what i think of the stocks that you care about and it's also an opportunity to interact. the web is supposed to be the only place that people interact. tv, no, we don't want the chattering masses, classes speaking.

no, they don't know what they're doing. no, you do that's why you watch the show. all right now a lot of times you asked me about the stocks, i care about and ones that i don't. understand i do not pick the stocks in the lightning round and i certainly don't know them beforehand. for the rare occasions where i let people come in typically because they've bid on me for charity. they see, holy cow, he really doesn't have the stocks. i know a lot and i've usually got an opinion which i believe is right more often than not. i believe. that's the operative term. but game is about interactivity. it's about you getting your voice heard and me judging what i hear. so as a viewer, how do you make most of listening to other people call in and headquarter my response to the stocks they like? i don't know if you've noticed but the substance of the lightning round is mostly about sectors. what group of a stock's in, comcast is cable, right, a lockheed martin's defense, okay? pfizer, drugs. someone calls in about a stock, if i don't like it, most of the time it's because i don't like this sector, 50% of a stock's movement is determined by the sector. and that's what i'm really saying. that's the important takeaway for you. and i get sectors wrong, too. i just look at where we are in

the economy and i graph that on and pick the sector that works at the time. other times i'll like a stock usually because i like sector and i'll still tell somebody to swap into something else. some other stock i prefer in the sector. something that's closer to best of breed. it's almost like i'm a traffic cop trying to redirect people into the right course. to make the most of the show moneywise, you want to watch the lightning round sectors now because that's what it really is and i change views on sectors or else we would just run the same show, right? we'd run reruns of "mad money." reruns where i say i like ford, i hate ford, i like ford. that's what comes out. what sectors i like, which ones i don't like and which stocks i consider best of breed in any given sector. entertainmentwise, i don't think that you have to think too hard to get the most out of the lightning round. but the bottom line is that the lightning round can be a valuable moneymaking resource. so long -- and there's a big so long -- as you approach it from the perspective of cramer analyzing sectors and it's not cramer, saying buy this, buy that with no rhyme or reason.

trust me, there is always a message to my mad money. want to learn more about how you should be watching the show at "mad money" i urge you to stick with cramer.

welcome back, welcome back to the lazy man's guide to how to watch "mad money." where i tell you the best way to watch my show if you're trying to make the most of it, oh by the way, the show's about making money. let's not ever lose sight of that. the show is not about having face-offs between one person who likes a stock and one who doesn't and then leaves you in the lerch, no. it's what's known as a directional show. i tell you how i would be making money the way i used to when i worked at my hedge fund. now if you're not trying to make money, just sit back, relax,

watch me make a fool of myself. i'll warp a diaper to tell you if i kimberly-clark. i'll make homage. stuff that makes me sound like a lunatic. maybe i am. but i assume most of you want to try to make some money. even if you're lazy and not trying right now, at some point maybe you'll watch the show for the financial advice. who knows, right? i'm up against real entertainment shows so maybe you just think it is entertainment. that's fine too. now there got to be at least a few people left who do not think i'm just some sort of joker who cannot compete with that nasty but brilliant savvy stock picker by the name of leonard the monkey, whom the critics often bring up to say that i'm not as good as. obviously just to break my heart and to keep me from wondering if i should bother to do this show. i mean isn't that what it's

about? don't they just want me to go away? i'm not going away. okay, all right. all right paranoia. if you're going to watch the show effectively, you need to understand that i change my mind. i change it often. this is a monumentally important concept because, first, it's what every manager does. just doesn't like to come on tv and say it. but judging by the content of my hate mail, a lot of people either don't get it or don't get why i do it and just think it's -- well, a guy being inconsistent and a guy not being thoughtful. let me give you a standard form letter of cramer hate mail. "jim, you said this stock was a buy a month ago and then yesterday you said to sell it. can't you make up your mind? how stupid are you? i hate you. i want to stick bamboo chutes under your fingernails and light them." that's pretty mild on the cramer scale but you see where i am going. i will change my mind a lot. if you want to get the most out of "mad money" you have to

understand that i change my mind because the market is dynamic. things that companies constantly change. so, therefore, my opinions will have to change too. i cannot just recommend the same stocks over and over if the fundamentals underneath the stocks have changed, or once again i would just constantly run five episodes over and over and over again. you can't rely on five hours of television a week to tell you exactly what you should buy, exactly when you should buy it, and then exactly when to sell. after a certain point, i mean, don't you think you're on your own? that's why i constantly emphasize the homework. it's not a canard. it's not me laying it off on you. it's because you need to be confident. you've got to do an hour of homework per week, per stock you own. i can't stress this enough. if you do homework you'll probably make a whole lot more money. if you don't have that time you can buy a mutual fund. i've never said anything bad about a s&p 500 mutual fund. that's perfect for the people who have the time. i don't like specific sector funds but a diversified mutual fund's pretty good. now i can't handhold anyone on the show. i can't be your sole source. i can make you a better client though. i know most of you know this, i

know that most of you are smart. i know most of you do your homework and i know that most of you would never, ever think of relying onion guy and even on this brilliant handsome 63-year-old, for all of your market advice. but let me explain some of my flip-flop and to the people who really want my head on a plate, bring me the head of james cramer. maybe with an apple stuck in my mouth like one of those roast-suckling pigs that we see at one of those big hawaiian luaus. it will be reckless and irresponsible for me to not change my mind about stocks. it would be not prudent for me if i just say, oh market's down whoa! i don't do that. there are very few stocks that you can own for more than 18 months, even 18 months is a stretch. it's the time horizon i try to use it's the time horizon i use

on my charitable trust actionalertsplus.com. even if you is a stock that represents a great long-term play, it's usually best to take profits when you have them. scaling out of the stock on the way up. as we said earlier to a caller p rather than risk losing all of your gains. as so many people did in 2000-2001, and then never came back into the market and have missed a fabulous, fabulous opportunity. so when i change my mind, it's because the situation underneath the stock at the company has changed. or because the whole economy has changed and certain stocks don't work. a month might not seem like a long time in terms of your everyday ordinary life, but a month is an eternity when we're talking about the market or in this vicious volatile time, a specific stock. so what's this mean for how you watch the show? it means that nothing, absolutely nothing is sacred. now things always going to be --

>> buy, buy, buy. >> sell, sell, sell. >> nothing is conical. meaning i don't mean -- i don't mean part of the can like the way that we think of -- i believe in nothing. and only in a destroy sense. i've always been -- and "the gambler" is one of my favorite stories. everything is contingent. not in the pseudosophical sense. just in a practical way. when i recommend a stock i don't mean this is a great stock for you to own for the next decade. that is reckless. i don't want to be reckless. i don't want to disguise myself and say buy and hold, when i know that's not prudent. if you take my advice that way, you're really putting yourself in a bad position. if i say i like a stock, i've got reasons. i'll tell you what those reasons are. kind of me, isn't it? so when i give a buy it's a contingent buy. holding true. if something changes, if my thesis goes wrong then why on earth should i tell people to buy? am i just going to say oh i'm early? i'm long now, i'm right.

that's what the frauds do. i need to think, why should you stay in a stock if the fundamentals are breaking? i like to think of the fact that consistency is no virtue if it loses you money. i'm not a politician who is deathly afraid of changing his mind on an issue and being criticized on the "chris math use" show. my favorite show. like some sort of flip-flopper. i'm a statesman. at least i got gandhi's hair and i'm not going to keep recommending a stock if there is no reason to like it anymore. the same goes for giving stocks a sell. if the reason to sell goes away, you should stop selling. at one point i thought the federated wasn't doing well so i said sell. later on fundamentals turned around. fundamentals do turn around and i had to go to a buy. it was perfect, no. did it hurt people? maybe.

but i was consistent with my philosophy of trying to stay a tuned to the fundamentals. when you watch me, watch "mad money gets you're going to take my advice and i do think that my advice is good, you do have to understand that i'm never telling you, end this stock until the end of time! i can only do some of the work for you. i can introduce you to ideas to the plays. but after that it's on you and on your homework. the bottom line, i don't deliver eternal truth on this show and i often change my mind. if you want to watch this show the right way, you need to understand the radical contingency of every recommendation i make, even the best stocks are fragile and you always have to stay flexible and stay with "mad money."de they find them at td ameritrade. trading's all about strategy. and strategy's... all about information. so: i start my trading day... with td ameritrade's morning perspective. that's interesting... or, look at this... i can mine their weekly webcast for ideas.

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oh, he likes it. he hates it. sorry. so throughout this show, i try to work in various different types of segments to try to help educate. i need to get you there and provide you with ideas in

different ways. the show constantly evolves and we develop some newer segments to address what i thought were holes in the original organization of the show. but how should you approach these things? speculation friday, what's that? sell block. am i diversified game plan? each of these blocks i've created partly in response to what i perceived was a need they lot of you home gamers have? diversified goes back to the old radio show. to the days when people had phoned in when they lost everything because they had all of their assets in the worldcom. they were all just tech, they weren't diversified. the segment's developed from being a cautionary game designed to help people understand the concept of diversification. that's not how we've played it for a long time now. now if you call on an "am i diversified" day i try to evaluate your entire portfolio in order to teach everyone at home not just how to be diversified but how a well-balanced portfolio looks like. i try to swap you out of second-tier stocks and strong

sectors and into the best of breed nails. it's a wholesale portfolio makeover. why do we make the change? because all of you are getting real smart. many you are diversified and you understand it. you understand the concept. and i appreciate that fact. i'm aware of the fact that this show's audience is probably the most intelligent one around and i want to play to that. how about speculation friday? what's the point of that sometimes segment? and how do you get the most out of it? at certain point i decided the smartest thing would be to move many of my speculative risky picks -- remember i accept that 20% of your portfolio can be speculative. keep you interested. i'm with you at end the week which would give everyone a weekend long, cooling off period to research the stocks. people don't buy them friday night. nobody trades friday night. then you don't dive headlong into them.

>> that way responsible speculators won't get hurt by the fact that the stocks spike and they can't find a good entry point either, considering a seat belt and an airbag. the cell block is probably the most important segment that i have added to the show since we started. it's devoted to two separate but latest things. being held accountable. holding up an actual segment where we reveal what i screwed up on, and telling you what it's time to go for. i recommend the stock. maybe you should sell. i don't think we need to explain why we like accountability. it is important to understand the point of the selling side. when i put a stock in the cell block, just like when i say a stock could buy, that doesn't mean i think you should go out and sell a single share we own. selling probably more than buying is a subjective decision. taxes, how much you put in, your basis. if i put a stock in the cell block, i might think it's time to take profits flowing or to cut our losses flowing. it's never right to sell it all at once, which is why i don't recommend doing it. i do recommend to put more

caution in the show, but the sell block is not your marching orders. if i recommend a stock, you buy it, and you're up 50%, but i don't put it in the sell block, and that doesn't mean you shouldn't take profits. similarly, if i castigate myself for getting a strong wrong and you still believe in it -- finally, there's a game plan. it's something i do every friday in anticipation of the week ahead to give you a little flavor. i might add it's the single part of the show that's devoted to long-term rather than short-term. i know every journalist in america has labelled cramer a trader. trader might as well be traitor to your money. "mad money" it's just a trading show. they dismiss it like that. don't you love that. you know better. none of the media actually watch the show. they're not allowed to make money. they've taken a vow of poverty. the truth is i usually only go into the business of short-term stuff, catalyst base trading once a week on fridays.

it's squarely in the investing column. the bottom line use diversified to get a better since of what makes a strong portfolio. speculation friday is there to encourage you to do homework on speculative picks. the sell block is for guidance on selling. the stock process and for cautious. its not the ten commandments, for seven's sakes. the game plan is for you. the game plan is the only part that encourages short-term trading. stick with cramer for more "mad money."

now you know how to use "mad money." i like to say there's always a bull market somewhere. i like to find it for you on "mad money." thanks for watching this very special edition of "mad money." >> i'm here to help you try to find it. we know that investing on the streets can be confusing. i don't want you to get lost. that's why i have some road rules for you to live by. here's one of them. think it over. don't buy all at once.

arrogance is a sin. i buy in increments, and i space them out to avoid emotion. how do you know that tomorrow the market won't crash? how do you know that tomorrow there might be an opportunity to buy one of your favorite stocks at a much lower price. please accept the fallibility to man's judgment and use it for your advantage. your broker might want to get a fill-in order all at once, but you have to remember that you are the client and you are in command of your money. my advice to you? don't buy all at once. arrogance is a sin. there are many more ways i can make you a better investor. tune it in to me on my show "mad money" at 6:00 and 11:00 on cnbc. "mad money," you cannot afford to miss it.

there's no one exactly like you. raymond james financial advisors understand that. and they have the freedom to offer unbiased financial advice designed to weather market uncertainty and help you reach your goals.

no matter how lofty. raymond james. individual solutions from independent advisors. live from the nasdaq marketsite, this is "fast money." i'm melissa lee. stocks making a late rally but the big gorilla is looming tomorrow. will tomorrow's jobs report spark a september sell-off? tech and profit about also on tap for this big thursday show, guy adami, the negotiator tries

to stay positive and finds winning trades in the temporary stocking sector. charlie gasparini with the man with the kevin-up bottle will swing by and all over this emerging gold breakout but first to the "word of the street." i again am not going to make a mock of this 63-point on the dow but financial, financials they did work today. we had some doubts yesterday as to whether or not people would come in and buy the dip. today it looks like they actually did, tim. >> well, you know the ism numbers first of all the bigger part of our economy which is nonmanufacturing are very good. mortgage rates are coming down. making it easy to pay these loans. same-store sales. it gave you a sense the consumer wasn't as bad off. it all added up to a day where i think mostly it was about a lack of volume. people i think are a little scared to be real short do into this number and i don't think that this should be. that's what today was about. a light volume move. >> light volume, absolutely light volume. 11 million contracts on the option's side.