shorm. >> food world. you know, pete said to me, deckers? >> are you serious? so peter lynch. i'm melissa lee. see you back here tomorrow. "mad money" starts right nour. \s. my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i just want to make you money. my job is to educate you, so call me, or of course tweet my ad jimcramer. on a day-to-day basis, with a hughes of worries constantly battering at the gates.

while an endless parade of widely respected nay airs keep insists stocks are doomed to go lower, a pessimistic drumbeat that gets amplified across tv, print and the web. regardless of where stocks are trading or how the stock might actually be doing, but this attitude is totally out of the sync with reality. i wonder if some of the national perma-bears are living in an alternate universe. just for 20 months from mid notch to miff july of 2014, the s&p 500 rallied more than 50%, a performance that's frankly downright spectacular. you simply bit on a market as a whole, you've made money hand over fist. you know i like individual stocks, but i always say no time and inclination? find, s&p fund. in the past this run would have

inspired euphoria. these days it only seems to inspire more skepticism. a modicum of skit such is always healthy, but i find the loathing of this market to be pathological. during a period where picking winners has been a bit like shooting fish in a barrel, and overabundance of skepticism -- that's right, as i explain in "get rich carefully" sometimes it's possible to be too skeptical. that's coming from me. this is not just my opinion. i can prove it to you empirically. as i was preparing to write the book. i went over the previous five years of my trades for my charitable truth. and you can follow every move the truth makes, you can get to buy ahead of when we pull the trigger. believe me, it's better when we do it. as i was going over the trades, trying to identify my mistake, so you don't -- i know that occasion al my good judgment is overcome by excessive

skepticism. not optimism. times i get too fearful or too negative, because i didn't think the company was capable of navigating the waters of. in short, there were moments when i didn't give the ceos of very well-run companies enough credit in the face of the lieges of professional nay airs out there, and my skepticism cost the trust money. of course, you need a certain degree of skepticism to be a good investor, but in an era when we're bombarded with nonstop negative that's empireius to the facts, including the fact that this market's long-term strength, and keerp your skepticism in check can pay off big time. especially when you're dealing with high quality companies that everyone else is overly skeptical about. in other words, when a well-run business hits a speed bump, don't get carried away and act like it slammed into a retaining

wall and caused a 12-car pileup. it's easy to let your fears overwhelm your judgment, which is why there's a whole chapter explaining house to check your emotions at the door. let me give you some personal examples so you can understand and remember what i mean. remember in 2012 walgreens picked a fight with express scrips? at the time i had been a huge fan of w.a.g.s., under the leadership of the ceo, especially after the company bought the big new york city-based drugstore chain and beautifully refurbished them, including the one that's next to me when i do "squawk on the street", but after the express scripts, the company -- were steered toward rival cvs to fill the prescriptions, walgreen got slammed down to the low 30s. then june of 21. he shelled out a control stakes

in alliance booze, the european health and beauty retail er at the same time not 150 yards from my own store where we had interviewed him -- as wall greens got pummelled down to the high 20, i said that wassen had gotten too aggressive, overspended and possibly bit off more than he could chew. after i made the comments, we walked me through the benefits. he explained why walgreens had to stick to its guns and even defended opening the new location which was a different street with heavy tourist traffic. therefore he sid -- i was unmoved. as much as i admired wassen, i didn't think he could put it off. i said so on air, telling viewers it was too risky to hold. as it turns out that was almost

at the exact bottom of walgreens stocks. he announced a groundbreaking deal with bergen, another provider that gave his company a huge boost in profitability. plus the integration of the alliance/boots deal, fantastic. walgreens hasn't looked like since, and the stock has more than doubled. i was way too skeptical urging people to dump the stock with a well-run company after the shares had already been crushed. i let mea fears get the better of me. when he actually put his vision into action, i was too scared to see the opportunities. now these days peopleant blood pressure -- that youal have to doubt. i'm telling you that's wrong. sometimes skepticism simply doesn't pay off. if you're not convinced, let me give you a bigger picture example, at with tune i was a major backer of shaw group, that

was famous for building power plants, especially nuclear power plants. i interviewed jim byrneheart, the shaw's ceo, he made very pod, very positive predictions. predictions i believe because of hi top notch, but then when the tragic fukushima disaster happened, i thought -- bernhardt insisted to me that shields should have faith. nevertheless once again i was too kept scald. sure new shaw sold it to to chicago bridge and iron, cbi, for $3 billion. that was the 72% premium to where the symptom was trading, well above where i told people to sell it, 72% premium. how could i have doubted this pan? in short, iunder estimated his resolve and worse, his knowledge

about what could happen to his own bit kind of like everyone else, frankly, the fact is while it may be fashionable to be skeptic, most ceos do know more about their companies than anyone else, and you ignore the good ones at their own peril. remember, don't let your skepticism run away with you. you have to check your emotions at the door in this business, and you want more examples of what i mean, i suggest picking up a copy of "get rid carefully." believe me, i plead plenty of them. now i think it's my job to stop you from repeating my errors. cecilia in new york, cecilia? >> caller: hi, jim, great show. i enjoy it so much. >> thank you. >> caller: can you help me as i near retirement, i'm interested in no-load index funds, but when

you look at the list, it's very long, i don't really know -- and i'm approaching retirement age. >> okay. you can buy the etf -- you know the spx etf. they will probably much be all same. van guard always has low fees. let's go to pat in michigan. pat? >> caller: hi, jim. >> hey, pat. >> caller: first off, i would like to send a big boo-yah to you and your staff. >> thank you. okay. my question is. i have a roth, and i'm looking to diversify into emerging markets. >> yeah, okay. i'm not a big fan of emerging markets. people ten to buy them high and sell them low, but i am a fan of putting 10% of your money in a speculation, okay? emerging markets is a

speculation. that should qualify for the 10%, but that would be it. can't do any other speculating. doubting thomas? a bit of skit such is healthy, but there is such a thing as but too skeptical. don't let your fears sweet use your potential profosts. "mad money" will be right back. can't say thank you enough.

you have made my life special by being apart of it.

(everyone) cheers! glad you made it buddy. thanks for inviting me. thanks again my friends. for everything, for all your help. through all life's milestones, our trusted advisors are with you every step of the way. congratulations! thanks for helping me plan for my retirement. you should come celebrate with us. i'd be honored. plan for your goals with advisors you know and trust. so you can celebrate today and feel confident about tomorrow. chase. so you can. ♪ and i won't back down ♪ hey baby if you want to rack up terrific gains as an investor, and that's what mumm in the end is all about -- invests, not short-term trading -- you need to be willing to stick by your guns, or you've got to stay true to your convictions, people.

hear me out before you change the channel. i realize this sounds like i'm dispensing a lot of trite, new-age mindful nonsense. actually mindful is a good word. this is practice money management advice. what do i mean by staying true to your convictions? when you've done a lot of home work and believe in the company, don't lose your resolve because the stock goes low er take a pae from tom petty's playbook -- don't back down. i know it's difficult to stick with a stock that's been pounded. no matter how much research you have done. i know it, i've been there myself. i've made the mistake of backing down of stocks i believed in -- >> sell sell sell. >> when i should have been -- >> buy buy buy. i look back at all my trades and bulletins, remember, it's real time over the previous five

years, with the idea that i wanted to analyze my errors objectively, and warn you about them so that you wouldn't have to repeat these same mistakes yourself. that's the essence of what the product is about. one of the trust's biggest blunders was losing or nerve with bed, bath & beyond. boy, was it ever -- >> the house of pain. >> we ball it in 2012. i love going shopping there. more important i love the region annual national expansive story, but the stock was expensive. sure enough in the spring of 2012, they reported a number that displayed, and it quickly plumb netted from 75 to 59. but the management said they would get the business back on track. i did enough homework. the fundamentals seemed solid, but by the time we are ready to pull the trigger, bed bath had

already started rebounding, so p took a pass and decided the next time it sold off, we would be ready to pounce. the stock ran back up to 71, but the next time it reported, we got yet another blah number, and people started talking maybe there was something wrong. they started talking about maybe the company was being amazoned, mean customers were used it as a showroom and ordering off the web. i thought that was absurd. the kind of thing you buy at bed, bath & beyond, are not the kind of things you order from amazon, so the trust use the tosh buying several thousand shares of bed past and beyond. but after a quick rally from 61 to 63, guess what? we started hearing the rumblings again. at first i didn't let them bother m i did the homework. i knew it was worse more, then

the stock sank to $59, so the charitable trust bought more, again our style for action alerts, what do we took in we took another nibble, then it talking but increased couponing. it seemed like every day somebody had something bad to say, so the trust bought still more. it soon bomb one of our largest positions next it's november of 2012, bed bath was weighing at us. below our cost basis, and frankly i couldn't take it anymore. finally we got some lift for a couple days, with the stock trading about halfway up we were sew overjoyed that we decided enough already! let's take the darn hit and be happy we got out of this one alive. so we sold the whole position. i was so happy. i patted myself on the back for

not selling it at the low, instead of waiting for that better moment to get out. yeah, then when you company reported again and the numbers were again nothing to write home but, but then it didn't go down, i knew, i knew classic sign of a bottom. something i tell you about, but we ignored it, we didn't start a new position. we were too traumatized to stick to our bed bath & bioyond guns. next thing you know, it's roars past the price where we first bought it up to the mid 60s mid 70s, as one analyst after another changed their minds. oz ran all the way up to $80 before it peaked about a year later at which point the stock went back to its old ways. there's more than one takeaway. we liked it when the analysts

hated it. then one by one the analysts turned positive, each time moving their stock hirer. and ultimately overvaluation, where it promptly collapsed back to where it started. we should have had the courage to ride more of that wave than just the first few points. given the hard-fought way we had approached it. if we hadn't lost our nerch, it would have been one of the trust's greatest hits for the year. as i look over the lost list of stocks, like national oil, varieso, i see the same pattern. we bought them while wall street was lukewarm. then the stocks got hit. the analysts went decidedly negative, only to unload the shares when they got lightly above or averages base into profitability. we sold precisely when the fun

was start iing by that time sad we were long gone! let me get to the bottom line. never sell a stock just because it's going lower and you can't take the pain, like the doubting analysts. rather than getting more aggressive and wanting to partake in the opportunity. if you've done the home work as we did. if you keep checking, as we did. if the story isn't wildly off the rails, stay long, continue to own, have some conviction based on your own homework, not the home worked of scaredy cat analysts. don't give up once the stock starts moves in your direction. you might end up selling it at nearly the worst possible moment. where for owned a slight gain in a few stock that is remained that we batted for seemingly forever, as well as the breakup proge progeny. it's always better to be

patient, people. sometimes just sitting there and letting it ride is the single best thing you can do. after the break i'll try to make you more money. friday night, buddy.

you are gonna need a wingman. and with my cash back, you are money. forget him. my airline miles will take your game worldwide. what i'm really looking for is -- i got two words for you -- re-wards. ♪ there's got to be better cards than this. [ male announcer ] there's a better way with creditcards.com. compare hundreds of cards from all the major banks to find the one that's right for you. it's simple. search, compare, and apply at creditcards.com. first round's on me.

next time we go ahead a broad pullback, remember the deep sell-offs that they involve the decline of a couple percent can be terrific buying opportunities for the big picture that i'm always telling you about. which themes? in "get rich carefully" i highlight seven that i believe are built to last. where you can go back to the well every time we get hit. i spent a lot of time talking about the american oil and gas renaissance in the show. that's one of them. tonight i want to single owl a theme that didn't get enough attention. i'm referring to the continual rally and success of what i call stealth technology stocks.

we live in an era where almost everybody believe in the -- technology in serve es other cell phones or the cloud, but innovation is the heart and soul of technology. these days, the innovation is happening where el least expect it, hence the idea of stealth tech companies inventing new products to sell genuine needs. what's the difference between a tech stock and a stealth tech stock? it's easy. the market has no trouble spotting innovation, but aen to of trouble noticing the inoinvestigation from more humdrum areas like apparel, restaurants, consumer packaged goods. the stocks of these companies trade around an undeserved discount. the companies with real innovation, that's what we need. it's why i keep thinking we have

to come back, even if the market takes a dramatic turn for the worse, because stealth tech names have had a history of bouncing back. more specifically when i talk about stealth tech, i'm referring to companies that is using proprietary technologies to invent entirely new markets and then dominate the markets, and ultimately higher priced multiples. so who falls into this stealth tech category? who's innovating like crazy, but not getting enough credit for it? i've got one for you. how about colgate? the classic consumer staple company is a hodbed, but colgate regularly trades at a premium to precisely because it uses technology. they're not knockoffs, they're not -- they're better. that's why despite intense competition in the super market aisles, colgate keeping taking

shares in many markets around the world. its innovation is entirely driven by insights the company glean from its customers. so let me rattle off a few. colgate has been twilling the wars thanks on optic white toothpaste which uses the same ingredients found in whitening strips. it has a dish washing liquid that also cleans the sponge. washing away any linger stinky residue. in the pet food division they sell a wellness food available from veterinarians and sells very well. it also realizes that rijens have different preferences. with regional new product roll-outs tailored to specific countries, which is how -- they've managed to grab an astounding 69% of the brazilian toothpaste market? who falls into the stealth tech category? today the most fortle ground can

be found in the apparel space. that segment has become a hotbed of innovation, and the most impressive innovator is longtime cramer favor -- underarmour. remember, ua first became a household names by creating a moisture-wicks apparel made from advanced synthetics that keeps your body as a healthy temperature, while drying out faster. it's as clean exis to tissues, but under armour didn't stop there. kevin plank doesn't just mouth plat attitudes about innovation. he devotes a huge amount of time on the conference call to explaining the company's latest scientific breakthroughs. highly unusual behavior for any kind of consumer goods companies. on most calls they go straight

to the nim bers. plank knows the numbers are driven by the innovation. for example, 2011 underarmour rolled out what was called charged cotton, an alternative to synthetic fibers, about you this wasn't regular cotton, it dries five times faster, has the durability that you typically associate with polyester, which i can't stand. plank believes in one invention would potential quadruple. the total market. it's huge, but i believe in him? how about storm, the most recent line of wise resistant hoodies? they have a shirt that track motion, and they have lightweight running shoes that use, to keep your feet dry, allowing them to flex naturally. undersh with it's armour 39 product, similar to -- these are the kinds of inventions that

give underdog underarmour a fighting chance against nike. without this innovation, i don't think underarmour could take on any entrenched player like that. but even with the stock trading very elevated, i think -- they have always started catching on the real story that underarmour is basically a technology factory. they never expected it would be anything so different about sweatpants, hoodies, sneaker. here's another one. how about starbucks? it also contains the most advanced mobile payments and affinity business out there, a system that will let you pay before you even walk into the store? while giving you all these sorts of rewards that people like so much? 40% of china -- in fact starbucks is so far ahead of the competition, i think they could make a killing licensing the

platform to other chains. this is literally a magnificent technology company. howard shuttle is trying to bring it out. even if start bucks doesn't monetize the system, the technology helps them process many more customers. domino's pizza, also a stealth tech name, thanks to terrific mobile and social based ordering system, which lets you order it via your facebook page and pay for it with a credit card. no wonder they keep crushing the local -- finally there's one that really should be focused on so much more, because it's such a great company. snap-on. tool maker that innovates in sync with the customers' needs, making it peerless, which means it can often write its own ticket. let me give you the bottom line here. the next time something horrible happens overseas and you're stock market gets hit, use that

weakness to get exposes injure to some of the long-term themes, thing like the power of stealth at the ecknowledge, colgate, underarmour, starbucks and snap-on. jim in arizona, jim? >> caller: hey, boo-yah, jim. thanks for taking my call. >> of course. >> caller: i want to thank you and my staff to helping me to turn my strategies around. i appreciate everything that you do. >> thank you so much. i feel great about that. what's going on? >> caller: my question is about how much cash i should keep in reserve. i'm often finding myself in a situation where i want to pick up a stock that's advancing faster than something i might have and i have to sell something off in order to do that. >> see, that's why action alerts we rank or stocks from 1, 2, 3, 4 in the quiet off the desk, not when the market is open, so we can sell our force and constantly raise some money, 5%

in cash, 10% if we're starting to be lukewarm. we've taken or cash position all way up to 20%. but i think you have to take stocks off if you don't like the companies. that's what you do. and always if a stock increases more than 50%, you should be playing with a substantial part of the house's money by -- mark in tennessee. mark? >> caller: hey, jim, how are you doing? >> good. you? >> caller: good. good. when you go on vacation, how do you keep your nerves calm and not worry about your portfolio? >> well, it's actually a problem. the answer is i always do worry. i would love to get to my life when i don't, but i run a charitable truth with stephanie link, and i don't do that. i don't own individual stocks, so i'm fine. if there's more to your question, i'm sorry -- okay. well it looks like -- listen,

the market can and does get hit. you have to be prepared to buy in the long-term themes that work. what's one of the themes that's built to last? stealth tech. that story is not going away anytime soon. stay with cramer. ♪ there's confidence... then there's trusting your vehicle maintenance to ford service confidence.

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if you want to become a better investor, which i know you do if you're watching this show, you have to hold yourself accountable. buying and selling tickets of various magnitudes, always searching for patterns and mistake or bad habits that i know were costing me money. i think in ongoing attempt to hold myself accountable is a big reason why i retired at the end of 2000, by giving the investors a compounded 24% rate of return. after all, fees for the 14 years

i was running things. that was three times better than the s&p 500. not to toot my own horn, but there's real value in holding your feet to the fire. you can follow all our charitable trust. i already toll you how, i cataloged every trade the charitable trust made over the previous five years, the good, the bad and the ugly to figure out where i was making mistakes. of course, reality doesn't follow a pattern. there's plenty of outliers, not to mention there's just plain old luck. the one-offs and products, i put up with a hard-and-fast rule that i need you to institute. what's this rule in? it's simple. never buy any stock above your cost basis. the average price you paid to

built up your current position unless something truly transformative has happened. maybe it spins off part of the business to unlock value. then i'm sanctioning you to pay up, but aside from this exception, you should never ever be paying a higher price for a stock than your cost basis. i know that most of you will absolutely hate there rule. i understand why. there's so many cases where you might feel this stock is going higher, and we don't have enough of it -- >> buy buy buy. >> so let's buy more! i'm telling you stop it! [ buzzer ] stop doing that. when you chase you're likely to get hurt. now think about the hideous declines in the one high-flying stocks in 2014. if you bought more, those were the buys that cost you.

my charitable trust has lot a great deal of money chasing stocks because they were going up. i would have a good-sized position and i would feel naked suddenly i would decide to buy more. what the heck, this one is going higher still. almost invariably we would purchase that very near a short-term top. i would obvious by buying more at the precisely the moment when i should have been trimming the trust position. this behavior feels very satisfying when you're taking stock, but it's produced some of my worst results. the empirical records say averaging up is dead wrong. that's why i'm saying it's a cardinal -- sure there will be times when you regret keeping your bat on your shoulder, when stoop keeps climbing and climbing, trust me by refusing

to average you will, you will avoid many more instances of regret. ideally, as i tell you in "get rich carefully" you want to make each perform matter, make it count. regular views now you should never build a position at one. if you want 150 shares of what's a current $25 stock, i would only buy 50, then you wait. let the stock come down at least another point or even better down two points before you buy another 50 shares. that way you've appreciably lowered yew base. after that, maybe you save some ammunition. say you have a big market sell-off, then and only then buy your final 50 shares. if you buy before you get a meaningful pullback, i'm telling you you're being too aggressive. then you won't have as much up side as if you bought all at once, but a smaller win is still a win.

by building a position my way, you'll be able to capitalize on any declines. if you buy all at once or on the way up, it will make you want to pull your hair out and smack yourself in the face, and yes, you probably would sell lo after buying high. there's one exception to my never average up rule. it's okay to pay a higher price if and only if something has changed. as long as you do your homework and keep an eye on what you own, believe me you'll be ready when something much better happens. if a company suddenly boosts its dividend and the market just yawns, you have my permission to buy. if the company makes an acquisition to boost its earnings, even though you know it should, you're free to buy above your basis. and if there are 34u8 pal insider buys, it's not that sporadic small-volume buys, but a real capital commitment, again you have my blessing. even if the insider buys happen

at elevated levels, i can tell you on the post-great recession track record, the stocks had terrific moves ahead of them, and none of these multiple inside irbuying situations were followed by any decline of any magnitude. you said never buy more of a stock that's trading above where you bought it. your cost basis. so let me give you the bottom line here. buys in on companies with inexpensive stocks is how the biggest money gets made, but you have to buy them correctly. one you starts building a position in a stock, you you should never buy more shares above your average cost base unless the company has done something radical. trust me, this rule is there for your protection. in the vast majority of cases when you chase a stock by averaging up and nothing much has changed, i am promising you you're going to get burned. i know, because it happened to

my charitable trust far too obvious, please, please, pleat don't let it happen to you. "mad money" is back after the break.

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you're never too old or too smart to stop learning. all night i've been telling you about the lessons i have gleaned from analyzing the performance of my charitable trust, looking at every move i made before i wrote "get rich carefully." some things you only notice in retrospect. so another rule from "get rich carefully" that i spotted. this one is simple. if you own a stock and it refusing to go higher when the market rallies, perhaps you should sell it. specifically on any day when the s&p rallied more than 1%, i think you should get a sense of the leaders and lag guards. regular viewers notice when i worry when your portfolio is rallying too much, when your outperforming too dramatically. that means you could be taking on too much risk. but when i look from my old action alerts plus.com bull

continues that i send out, i no-n noticed something else. when you found that the vast majority of stocks in that same sector didn't go up, either, you had to redouble your homework. chances are there's something awry that you haven't noticed. it could spell trouble down the line. if pays to sell those stocks or revisit them. what justifies selling without more knowledge? the reason, when the charitable trust owns stocks on big up days, when the market gained a percent or more, those stocks tended to get absolutely clobbered on the inevitable down days. and this didn't just happened to the trust once or twice, it happened multiple times. therefore it was a pattern. that could have been avoided by following one simple rule.

sell any stock in a sector that fails to go higher that fails to go higher on multiple up days, because one -- turned a markedwide rally might be a one-off situation. when i ignored several days' worth, the charitial trust losses were pretty eye-opening. the stocks with personal computers started to falter hard, even on big up days. in 207-2008, we saw the same thing happen with the steel there would be days when the market would go higher, they would rally very slightly or do nothing at all. sure enough, that consistent weakness on up days -- it's relative weakness, was a signal that they were in a decline, in the case of the personal computer, it was because of the advent of the smart phone was making pcs far less relevant, a

swoon that the computer business only started recovering from quite recently. in the case of the steels and fertilizers, it was because they were being overwhelmed by cheap foreign imports that the analysts didn't see coming. in both cases the stocks were practically screaming "sell me sell me" before the pain got too terrible. maybe they have given you terrific gains you don't want to part with, i get that, maybe the past earnings have been very strong. it doesn't matter, people, if the stock can't really, that should be a red flag. that's a clear sign to you that you need to -- >> sell sell sell. >> -- and do it fast. even best the breed stocks can do real damage to your portfolio if they belong to a sector that's in long-term decline. when things are going well,

when the overall market is roaring, even the best investors have a tendency to get too optimistic and slouch into loppyness. that's when you have to look over ever stock in your portfolio after a big up day, and if you find that you own stocks that consistently refuse to budge, refuse to rally along with the rest of the market, i'm telling you, you have to lighten up. you've got to sell. this rule is too important to ignore. i know i've made the mistake of hanging on the laggards in a winning market. don't repeat that mistake. you know better now. a stock that can't go higher is a stock that often deserves to be sold. trust me it's not participating because others know more than you do, and often you can't wait ahn to find out what it is you're missing. you'll be too late and your portfolio with suffering the consequences. stick with cramer. friday night, buddy.

you are gonna need a wingman. and with my cash back, you are money. forget him. my airline miles will take your game worldwide. what i'm really looking for is -- i got two words for you -- re-wards. ♪ there's got to be better cards than this. [ male announcer ] there's a better way with creditcards.com. compare hundreds of cards from all the major banks to find the one that's right for you. it's simple. search, compare, and apply at creditcards.com.

you've got to get some of the tweets you've been sending me. here we go. a question from a -- bro, how do you find find time to research all they companies? okay. i have a -- i'm going to be honest. i have a gift. the gift is i'm not board by the stuff, so i can literal le appointed them. i start with a stack, start with the conference calls. if i'm intrigued by the conference calls, then i pull a

file, i look at what the analysts have been saying, but you have to have a facility for it. if you have it, then can you do it. otherwise you just look at the companies that you own and do the research there. it has to do with facility and a desire to understand the stats. let's go that a tweet from mr. gp fact of the day. what do you think it would get to jim cramer to sp el with my class in search of awesome guest speakers. >> my days are really numbered. it's very hard to do these day. as i get older, i want to spend more time with my family. when i do it, i certainly post it everywhere so you have a chance of coming to it. the next tweet -- what is the most important thing while trading stocks #getaplan. discipline trumps everything. know when you must buy, because it's at the right level, and don't chicken out. same thing when you must sell.

have a bit of a place where you recognize you should by playing with the house 'money. that's discipline. discipline means the most to trading. let's good to this question -- what are the inputs that you use to trust the company that raises their guidance for sales and earnings? i like to look at the model. sometimes it's boring, i know, but i like to find out whether someone has gotten the beat, so to speak, through tax rate or through actual revenues flowing down to the bottom line with boutiful gross margins. it's the latter that moves the stocks. stick with cramer.

i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money." i'm jim cramer. see you next time.

lemonis: tonight on "the profit"... that was freakin' awesome. ...a baseball-novelty business based in coopersburg, pennsylvania, has struck out with their key major league baseball clients... you don't even know what you have in here. ...and the stubborn owner... it's toxic in here. ...who has a hard time letting go of the past. honestly, you can't be in this business anymore. scott: i've been doing this for 25 years. lemonis: if i can't change the focus of this all-american business... if you don't evolve, you will die. wendy: [ voice breaking ] you know, i worry about his sleepless nights, his stress. lemonis: ...then it may just be game over. scott: cowboy up. lemonis: my name is marcus lemonis, and i fix failing businesses. if you don't like money, don't follow my process. i make the tough decisions.