periscope thing will catch on. we just say we are scoping. final thing, valero. bringing it to the upside. >> we'll see you back here my mission is simple to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and 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 want to save you money. my job is not just to entertain but teach and coach. call me or tweet me @jim cramer. nobody, i repeat nobody likes to be disciplined. they don't like to be admonished and they don't like to follow

the rules. i don't blame them. i was a rambuncous kid myself. i didn't believe they could help. even if they cushioned the inevitable downside. in order to keep me from losing big money when things went bad ly ly. the rules i'm discussing keep you in the game when things are tough and you make those mistakes. the rules protect you against your own bad judgment about what is going on and the companies you own or whatever is happening in the market, but if you're going to the own money because you can't get return anymore else these days which is the case, you're going to have to work harder with your money to do so, and that requires

discipline. discipline because once you start buying and selling stocks you can make more mistakes than if you just do nothing with your money, but if you do nothing with the money you'll have a lot of nothing to show for it. the that's why we are doing a show tonight on how to trade and invest responsibly to make your money work for you. how to tend it, how to make it grow, we're gardeners of money tonight. how to keep it growing from active money management. it's not a sin and a lot of you practice it. i want you to do it right. before we dig into the ways to make your money grow by being hands on about it. i want to dig into psychology of stock. one question i'm asked repeatedly when people stop me on the street. i go back and forth from street to squawk on the street don't you worry about your stocks? it is true that i don't own any individual stocks invest to

charity with stocks and dividends, more than $2 million since the time i set up my cartable trust. believe me i still worry as i want to be able to give as much money to charity, as i can and do i disclose and tell you everything is part of the bulletins for actions alerts plus.com. you bet i'm concerned. it can be embarrassing when i get it wrong. yeah, i'm always worried about the trust stocks especially when they go down. i'm doubly worried when they go down when the market as a whole is going up. that's a sign to me something is wrong. someone knows something i don't know and then i better find out or i won't be able to take advantage of the weakness to buy more. that's the chief reason i'm bugging you about reading the news releases and going over conference calls, that part right before the q and a and guidance and going to the websites for more information. you can't be informed if you don't try to inform yourself. i know that those who don't know

what they own and can't articulate what they own and don't know what a company makes or sales, don't know why it would be going down either. they don't know whether to buy or sell into a big sell off, however we're talking about psychology. the psychology of the mind when all that homework doesn't pan out, believe me it is a frustrating. whether we select a stock to highlight, we do a massive amount of work every time. the same amount i would do on my hedge fund. it's really difficult to see it go down but there are plenty of times when there is say, something you don't detect. there is plenty of time of puffing by management. i talked many times on the show about press releases that make things sound better than they are. the ones that start by saying we are pleased to report that sales increased by 12% and it sounds good except the consensus of analysts was looking for 20%, which means with that 12%,

you've got a hideous short fall or worse than that puffery is when you own a stock and someone out there knows the truth and you don't. maybe someone found out about the truth playing golf with an executive. you know that goes on. maybe hedge funds paid to get the truth as you've seen time and time again and titans that ended up in jail for doing it. in other words, the insideerrs had the call you didn't there are time when is you own too much stock. we call this being too long. you are too long as the professionals say, and you can't buy anymore more stock on the way down so you're going to lose money at least on paper or borrowing money to finance the portfolio, which i think is just a terrible idea. stocks aren't houses. you can't fall back and live in them if you have a mortgage on them. they just get taken away by the

margin clerks. so what do you do? how do you manage a portfolio under conditions where things go wrong with the stocks you own all the time and things go wrong in the market all the time part of what is going on at the individual companies in which you own shares? there are no magic bullets but i believe when in doubt, this one principal is key. discipline trumps conviction. memorize that term. discipline trumps conviction. i stared at a yellow post it with those words for many years when i was managing money professionally to remind myself things go wrong and you need to have a scheme to help you deal with the situations when things go wrong as they inevitably do. i put a discipline trumps conviction sign right on my personal computer to remind me what to do in the stock market

when things go awry. if you're not tough in your decision making and you like and you can't be flexible. you can't change when things go wrong. you have to come up with a system when things are good and times are placid. these are hedges against yourself when things tough. when it's really calm out there, you can do good decision making. not all stocks are reuatecreated equal. you have to circle the wagon going out west in the 1800s around a few good stocks. buy them down to get a better basis or average price for the holdings. why does this matter? we must expect corrections, and we must expect declines as a matter of course more on that later in the show. we must anticipate the days when we wake up and heard the good people on squawk box say the futures are down they are down a great deal and the market

looks to open half a percent or down a percent. you've heard the that. we learn sod muched so much over the years. the most important thing is to have a game plan when you've done the homework and have tremendous conviction, discipline dictates that you must assume there is something you don't know going on with individual stocks or something happening in the world beyond the control and you're just being victimized. my ranking system will get you through the chaotic times, allow you to stay cool and methodical about the money when others around you are deciding they can't take it anymore and have to get out of dodge at the exact worse time. so here is the bottom line, in order to be able to deal decline in your stocks or in the stock market as a whole, you have to accept that something is wrong at the companies you own shares in that you might not know about or maybe there is something happening in the stock market that you didn't foresee. therefore, you must be ready

with a game plan that can bail you out, short term and keep you in the market longer term is your money works for you and not against you in a time when you need it most. frank in new york frank? >> caller: jim, i understand why a company goes public to raise capital for various different reasons, but why would a company want to go private? >> this is a great question. typically because they think it's worth than what the stock market is paying for. that is key. when you see a company go private, that's typically because the owners managers recognize there is so much value and the stockholders and buyers don't. they take it private, make it look better and bring it public again. ann in california? >> caller: hi i haven't seen any perspective on stocks lately and i'm curious if there is anyway to tell when a company is going to split stock? >> there isn't. companies tend to be close to the best about it. remember, when you split a

stock, 2 for 1 split. it doesn't necessarily create any wealth at all. it happens to be exciting and i can tell you when stocks do split, smaller envest torsenen -- investors get a chance to buy. they tend not to signal when it will happen. discipline isn't fun but it is necessary if you want to make big money in the stock market when there is a decline you have to accept the facts and have a game plan ready. i'll help you out on "mad money" tonight, there are trades and there are investments. i'll explain why understanding the difference will save you from a world of hurt. then headlines may be black and white but investing on their every word could have you drawn income a sea of red. the true story and correction is always lurking around the corner. i'll help you protect yourself so stick with cramer.

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going over the rules, rules so losses can be pal letble and keep you in the game when others are freaking out. i used to talk about the rules all the same so they became second nature to me but that was years ago now and when i think about it it's in response to a tweet @jim cramer that the rules answer. that's why i kind of dust them off here and make sure people realize i'm not ducking their questions. i'm just looking for better format to flush them out than 140 characters where i can't be thoughtful. i want to be thoughtful but it's hard. this is the format. here typical question.

some will mention a stock that had a hideous decline. they will ask what do i do now? i often then turn the table on the person asking why did you buy it in the first place? they either regard the answer as arrogant or flip but what i'm trying to do is figure out if they bought it as an investment it might be fine for a longer time horizon and they should buy more or do it for a trade and perhaps should cut losses. why does this matter? because one of my cardinal rules is to never turn a trade into an investment. if there is one concept you must take away from the show you must never ever turn a trade, than something it was meant to be. let's talk about the process of buying a stock. you must pull the trigger, when i decide i'm going to buy an oil driller, okay, i have to declare right up front to myself whether i am buying it for a trade or

for an investment. what's the difference? a trade means that i'm buying it because of a specific catalyst a reason that will drive it higher. that catalyst might be a data point, recommendation belief things are better than expected when earnings come out or news about reinstruction. in other words, there is a moment to pull the trigger, a moment to buy. perhaps because you think that oil is about to spike because of a shut down of the faucet in russia and then the event occurs and you're done. you must declare first. the vast majority of you will buy a stock for a reason and either the reason occurs and nothing happens to the stock so you decide darn i'll call it investment and not worry, buy more if it goes down or perhaps the reason never occurs that you bought it for and you decide to hold on to it because well what's the worst thing that can

happen? the answer of course is plenty and almost all of it bad. the answer is that you would never have bought it in the first place if you didn't think the reason was going to occur. so now there is no reason for you to own it in the first place. i've seen investors turn trades into investments developing an alibi to fool themselves they are doing the right thing because they don't make a distinction between trade and investment. if the reason i bought the oil company doesn't materialize, i can't say i'll hold on to it because it has a swell dividend. the only thing that would have saved it from being cut is higher oil prices and without them, the idea is going to the dividend. now when i want to invest in a company, not trade, invest in a company, i buy a small amount of it to start and then hope the market will knock down the stock so i can buy more at a better price. that's right i actually when i invest want the correction,

which is always the way you want to be thinking if you try and start a new investing position. ideally the stock is down from highs because you don't want to buy an invested stock at the 5 2-week high but there is nothing like a nationwide market sale to get you better prices. trading is the opposite. i put the maximum on at the beginning because i believe the data point or event is about to occur. i never buy anything for a trade without that defined catalyst that's the word we used catalyst. i never buy anything for trade hoping it will go higher as there could be no hope in the equation of buying a stock. i buy down, lower prices when i'm investing. i cut my losses immediately when i'm trading if the reason i'm trading the stock doesn't pan out. that's why i like to say my first loss can be my best loss. if i buy a stock for trade, not for investment and it goes against you in a meaningful way, perhaps a decline of 50 cents, you may have a real problem on your hands. i'm not kidding.

when it comes to trading, i'm an extremely disciplined person to the penny. i like to cut my losses quickly and get over them quickly. that's why i say my first loss is my best loss. other losses tend to be from lower levels and a big cost to me if i don't operate on the principle. people can instinctively feel the trade going awry but because of ego pig headedness they don't want to heed the thunder and they stay in only left to panic out at lower levels when the catalyst doesn't occur and the reason to own the stock evaporated. so please don't fool yourself. cut your losses quickly when you put a trade on and it starts to go awry. sure, this is an occasion or two when it's about to pan out and the market doesn't know it but for the most part it does and you're probably going to be wrong. just the fact of life. it's all the studies i've made the bottom line never turn a trade into an investment. better just to take the loss because believe me the

percentages say that you will most likely lose money and if you do so do it earlier rather than later and save some bucks. stop fearing the big score and start fearing the losses because it is the latter that can wipe out all those good juicy games and then some. there is much more "mad money" ahead. chasing doesn't always have a happy ending. i'll help you know if it's ever right to run a hot stock. don't miss my take how to pre prepare yourself for the inevitable. holding on for too long can burn you in the end. i'll let you know when to cut the cord. stick with cramer.

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want bladder leak underwear that moves like you do? try always discreet underwear and wiggle, giggle swerve and curve. with soft dual leak guard barriers and a discreet fit that hugs your curves. so bladder leaks can feel like no big deal. get your free pair and valuable coupons at always discreet.com we are going over the rules that have gotten me to this point in my career where i can play for charity in actionalertsplus.com instead of trading in my hujedge fund. the lessons are with me and i'm going over them in this special show to help you with your portfolio portfolio. if it weren't for that darn buy of and you fill it in why don't we use high max, i would have been up big or i would be making a huge amount of money in the market if only i had let blank,

let's use fire eye run against me when there was insider selling against me. it takes one or two losers to wreck a portfolio. i try to devote far more of my time analyzing my loser stocks than my winners. not because of some sort of streak rather i recognize that stocks often tell about declines ahead of time, loss control is the power concern and the winners, good stocks take care of themselves. take the loss before it gets hideous. don't think you can't sell until it comes back and you promise not to do it again. by the way, that's how losers think. you need to think like a winner, not a loser. you want one of those people who i answer with focus, will you, on twitter because you're obviously unfocussed and undumb by the market. the flip side is true you do

not have a profit until you sell the stock and nail it down. it's not a profit. it's something that people constantly confuse booked gains, real gains that you can take to the bank or of course to get yourself cash from your sweater in a nice department store with phony paper games because they can be taken away in a heart beat. host people are reluctant to book a profit because they don't want to pay taxes. i tell people if i could just rewind the tape to january of 2000 or july of 2007 when people were sitting on literally trillions of dollars in unrealized games because they didn't want to pay the tax man, we could drill this point well enough. gains not taken can be losses the that will be taken. gains taken never become losses. it's that simple. i stress the this point because we have all been brainwashed not to sell. somehow we think it's sinful. it's trading, whoa.

it's it's common sense to kill and the only way to get rich in a chopty business typy business. when it comes to stocks in human nature, you got to learn to counter it. it's so often hard to resist. i can't tell you how many times i've had my heart in my throat pounding pounding because i didn't own enough stock a rising market. i didn't have enough exposure. i can't tell you how often i felt i had to play. i had to be big in stocks because the market was going higher and going higher without me. do you know every time i had that feeling, that instinct almost every time i had that i can't miss this action drama plan around in my head do you know what happened? that's right. i lost money. discipline is the most important rule. sometimes that discipline means admitting that you missed the

opportunity and it's already too late. i almost always feel like i've missed something right near the top of the market the top of the mood, when i was a hedge fund manager, are you sitting down for this? i actually turned that sentiment into a profit center by actually betting against myself and the market when i thought i was missing the upside. that heart stuck in the throat feeling correlated with the tops of moves, not the bottom ones. i actually made money saying oh there is that paint again. sell. i remember the best time to buy is when it feels most awful, not when it relieves the pain of fearing that you're going to miss the next big rally, given that the rally is inveribly already occurred. you must protect yourself against over trading. there aren't that great ideas to act on. the great guys don't have that many great ideas. you have to think when you are prone to this. when i go on twitter, i'm always amazed how people want me to opine on a stock just reported

and do it in one headline alone. i find that business wires are always most always wrong because business is harder and more complicated than the press release that tells who is happening as anyone tried to go through a bank quarter. the headlines can't capture reality did because reality is a jumble. headlines that present stories about such and such and number being better than expected are the types of headlines that always punish the quick draw mcgraw traders. there is some other met trick that might be more important or theufactured with one-time gains. you have to listen to the conference call. a company lays out the guidance for the future. that moment and not what the headline writer is rebounding to is what you will see will make the stock move. that's where you get the accurate move from. everything else is guesswork.

you can't do much with guesswork except get in trouble, so many of you want to get in trouble because periodically you want to be right, trade in a headline this is important because electronic trading you can move too fast. it's like your car goes too fast for you. if the this is really a great opportunity, you will not miss it by taking time to inform yourself believe me. before you do so make sure you know what to look for and what matters. you might want to have a grid of what analysts are saying about what is about to occur so you won't be fooled by the first move taken by people less informed than you and they are less informed and most important, understand the headline doesn't tell you how the company is dog onsing doing on the key met tricks metrics metrics. airlines revenue per receipt mile. many time i seen headline numbers for the company to guide

numbers or the key met trick estimate wasn't beaten even though the headline says it was. don't let gains turn into losses and never trade because you fear the market going up without you or stock rallying over a headline that maybe, just maybe might be wrong as they so often are. ed in california ed? >> caller: boo-yah, jim. >> boo-yah, ed. >> caller: i'm using a strategy going from six to 12 months on stocks you recommend. this is to avoid any possible market swing. what do you think? >> this is exactly what i want. ed is doing exactly what i want. i talked about this 100-page chapter i tried to cut back and decided and couldn't. he's doing stock replacement. he's literally taking the risk out of common stock by declining by stopping the decline and getting the upside big percentage gains, you are the man, ed. you know what i have to say, you have horse sense. jacob in california please

jacob? >> caller: hey, jim, how are you? boo-yah. >> boo-yah. >> caller: hey, jim, love the show. >> thank you. >> caller: advice is phenomenal. jim, as an initial first-time investor, what is your recommendation and how many positions one should have without going over their head. >> stephanie lincoln and i who are professionals managers for years of my travel trust, we can only handle 30. as soon as we do more than 30 and as soon as we do more than 30, we're pros we get hurt. an individual that may not be as sophisticated will make mistakes. try to limit it. play diversified, it's five with "mad money." larry in massachusetts. >> caller: it was often said jack kennedy's strength was he surrounded himself with bright people. >> right. >> caller: i wouldn't be in the game at all but for your teaching through the many books,

action alerts on the show i have to tell you how much the folks that you gathered at the street.com stephanie link dave, brian ashen burg, and gina, cliff, nicole and katy. >> holy cow, you're a close follower of the world i love in. >> caller: i'm a cramanic. when is it something to be ditched? what characteristics risistics make it a core holding. >> here is what to look for. when everybody knows what you know, when there isn't a single analyst that doesn't love your stock, when you constantly hear that that company is great and the ceo is great, you know what? it's long in the tooth. got fo mo yes, f-o m-o.

there is such a thing as over trading. i'm here to help you out. coming up, sure corrections will come but you don't have to suffer when they strike. how to prepare for those painful day. then we all want our stocks to succeed but getting too attached can be a portfolio killer. why emotions and money don't mix. they are oil and water and taking on your tweets. stick with cramer.

tonight we are going over the rules and disciplines that i have learned in holy cow, four decades of investing. rules i want you to know and learn by heart like i have. you know, not just like the usual twitter, 140 character stuff this is real stuff. a lot of people for instance don't think a correction is ever going to occur. get lulled into the market during good times. a lot of people get involved when there is just months and months of good times and when bad times hit, they are eager to pin blame or to be shocked in disbelief instead of expecting

corrections and not being fearful of them. yeah, when a correction occurs many investors decide they want nothing to do with the market. that the corrections signifies that something is wrong with the market as a whole as if these aren't stocks of companies and therefore the market can't be touched. that is a really big mistake that is made constantly. corrections happen all the time. they particularly happen after big runs. they are to be anticipated. i learned this years ago. peter lynch said anticipate these. you can't write off the market when they happen. i like to tell the stories and put things in sports analogyiesanalogies, so i tell the story of joe demaggio. when he failed to get in game 57, should you have traded him and cut him because of a, well, whatever. was he finished? is that smart thinking? same with the market.

corrections are to be expected and accepted as a matter of course particularly after 57 56 great days of the market you're going to get something like that. when they happen, they aren't a reason to panic. they can be great opportunities. even as people insist that the markets is done because the charts are bad, taking out the 200-day moving average and a death cross, whatever that is or the market is unpalletable or you read bears who come out of hibernation, they like to be right that day. given so many don't expect corrections, here is something that seems common but avoided by many people i have met, especially jim cramer on twitter. lots of people wrongly believe in being fully invested at all times. lots of managers think they will be fully invested every day. this is non-sense. lots of times the market just

stinks so you want to have cash. not go in and out of the market. i'm saying having some cash pretty good. a lot of times there is nothing to do except have cash in fact one of the chief reasons i out perform every manager in the business during my 14-year run as a professional money manager is there are substantial blocks of time where i have a lot of cash. i was largely in charge including the 1987 crash when the market dropped 508 points in one day but lower level than this one, 22.6% hit to be precise. cash is such a great investment at times. even when it earns little to nothing as it has for ages you know i regard as a better hedge, perfect hedge as opposed to shorting the market because the market goes higher than 1999 or the year of the great recession. you can face devastated markets and climb and climb and climb. i think cash may be the single most underrated of investments because nothing feels as good as

cash when the market comes down. i know that from my charitable trust. great when the market gets hammered. a reason why when you follow my method you know when the market spikes, you'll take stop off, trim here and there to get ready and reposition myself for the next correction. close viewers of the show know i sell strength and buy weakness. when the time is right, i almost had that crash to put to work because i believe so strongly in cash as an option. if you don't raise that cash here is what could happen you might end up selling the winters to subsidize losers that is another common mistake. so many bad portfolio managers and investors always sell the best stocks so they can hold on the worst stocks. you can always tell when you see this pattern. you'll be reviewing someone's portfolio as i used to before my rules prohibited investment advice and it would be filled

with junk and you will say hey, what happened to your -- i'll say what happened to your blue chips, the stocks that can best weather and allow you to smile on the other side. they will say i had to sell those and buy more of the other stocks because they kept going town. portfolios riddled with stocks that stop working a long time ago. i counseled enough investors in trouble to know the first thing that gets sold are the best stocks because they can be sold. there is always a bid for the good stocks a ready buyer ready to put up capital while the bad stocks go down the line and fold under prerssure. they don't sell the awful ones because think are down so much typical alibi for not taking action. non-sense. they are probably going lower. please do not subsidize lower stocks with winners. if you own companies with deteriorating fundamentals common occurrence please sell the bad ones. take the loss. reapply the proceeds go to the good ones move on.

don't feel bad for yourself. lots of times the circumstances are simply changed for the stock market. the company might do a lot of business in say, russia that might be great before sochi, maybe dramatically. you may have to sell it for a company that's largely domestic or slow down the economy has caused shoppers to stay away from expensive brand products which happened in the deep panthering of america. blind sided many food stocks thought to be safe or perhaps a terrific drug company like pfizer making drugs until they went off patent and crushed margins. these stocks were so often kept because they have had gone down and subsidized losers with the sacrifice of stocks. get ready for the correction, it's coming. have cash on hand and when it happens, don't sell good to subsidize the bad. you'll end up with a terrible

portfolio that won't be able to bounce back when times turn better. "mad money" is back after the break.

rules are a drag, aren't they? i hate rules but they will keep you from getting blown out and help you navigate tougher times that come up when you least expect it. if you aren't prepared mentally you won't be tough enough to handle the moments and flee when you think about what is right to do or paralyzed with fear and self-doubt instead of mindful and opportunity. emotions have to be checked at the door in this business. i often hear people say i hope that a stock goes up or they ask at at jim ask @jim cramer on twitter, doesn't it have to go up? doesn't a team have to win a game some time? this isn't a sporting event. we're buying stocks we believe should go higher and avoid stocks where the underlying business is bad and getting worse. where should hope fit in?

nowhere. people treat this business at times like a religion like idology and believe if they pray things will work out or fall in love with miserable pieces of paper with the idea love that be equated. be realistic, hope, pray love rooting. these are all enemies of good stock picking. i can still recall the ringing in my years when i would get off the trading desk with karen cramer and she would say what's the deal with the memorix? i would say hey, i'm hoping it gets a big contract. she would scream. hope? hope? we need hope to make this work? sell it and get me something where we have more in our favor than just hope. man, what a beat down. many times she didn't ask. she just sold it after i used to word hope. i didn't buy it back because i was hoping something would happen, and once it was sold i

felt like well relief. sometimes the stocks of good companies do nothing and you get frustrated. good stocks at times will do nothing for ages. i remember when hathaway did nothing for ages. if you're a professional investor, this waiting can be unnerving. you have partners calls you regularly asking what you are doing with their money. they don't want to hear you own stocks not moving up at once but individuals have no such pain. individual can sit on stocks as long as they want. when i cancel patients many individuals get antsy. they want gains, want it now. some of the best stocks require incubation. do you know how patient i was owning intel? for 18 months i watched intel do nothing, paint dry, paint dry, but i believed i held on because at that time i had a few partners and none of them needed to know every minute how much they were worth. a common strain of regulated to ask how i was doing.

later in my career when partners hounded me daily, boy, did i hate that? lots of stories take a long time to incubate to develop and take 18 months to two years. when you buy a stock and recognize it can take a long time to turn, the market is your mind so you don't get tired and give up. here is something important to remember stocks stuck in the mud tend to romp when freed from the gate. murders. do you have the patience? if you don't, let someone else invest your money. finally, no would have, should have, could haves. one of the most despicable traits is second guessing. you make a call buy some cell gene and suddenly has a patent issue that causes it to get hammered of sell dupont and sends it soaring, next thing you know you are remfilled with self-doubt. that's nonsense get it together. you have to be ready to see the

ball right for the next pitch. okay? there is no time to get down on yourself. do that for fantasy if you cut brady or something. if you want to be constructive, brackets and time at the end of the month or maybe at the end of a quarter to assess your strategy and stock-picking ability but to second guess your strategy is to put yourself in a loers loser mind set. i thought one of the younger people that made a mistake costly to me i made them wear the symbol of the stock they screwed up on as a post it on their forehead for the day. i even sent them outside but insist if you say if only i is time that keeps you from getting the big stock. karen cramer believes women are much better traders than men because they lack the second guessing instinct. she did teach me to steal me self-and not come in the next day with the mental baggage this

business isn't about hope. don't root for your stocks to go higher pick sharps ines in good companies. cause you to sell and go higher be patient ex try to keep the self-doubt to a minimum. clear your head and get out there immediately and find out the next big winning idea. there is just no room for should have, would have, could have, and stick with cramer.

we go for what you want. we got tweets so let's get to them. our first tweet from mark richard under score auto dividend reinvestment or take cash and buy selectively. your take. really easy call. a huge percentage of the gains that people have in the stock market over the years come exactly from dividend reinvestment. this is a no-brainer and the there are very few no-brainer and very few free lunches. compounding is the secret behind wealth. here we have at jamie devires.

who came up with how you say old bristol myers. can you imagine when karen cramer and i traded together we had a broker that often recommended bristol myers and always said it that way. i decided hey, that must be the way it's really pronounced. let's take the next tweet from at @craig bo. in initiate a new position. if you liked it higher you should love it lower, so the answer is buy more of the lower one or get rid of it. up next at no to l, whatever s at what percent for profit should we sell shares at no two? this is really important. there is no firm rule. what i like to do when the stock goes up 50%, i like to sell some of it and then a little bit more and i sell more but the ultimate goal for all great

investing, you play with the houses' money. that's the way to do it. always try to fight to get to the point where you're playing for the houses's money and yes, stay with cramer.

i like to say there is always a bull market somewhere. i promise to find it just for you here on "mad money." i'm jim crimer and i'll see you next time.

lemonis: tonight on "the profit"... it's a small space. tonnie: it's been challenging. lemonis: ...a tiny cupcake shop with a big idea. tonnie: you walk in, you pick your cupcake out, you pick your toppings. lemonis: tonnie's minis should be raking in the dough, but it's not. there's $134,000 worth of debt. his biggest investor is his wife. erenisse: it's to the point that i'm not giving any more money. lemonis: tonnie's bakery is cramped and chaotic. sales are down. right now, we're losing money every day and so i'm trying to stop the bleeding. and the debt keeps rising. erenisse: i'm just upset 'cause i didn't know about all those people that we owe money to. lemonis: if i can't find a winning recipe for tonnie... we're closing the store. lauren: oh, my god. this is ama-- [ glass shatters ] lemonis: ...his relationship and his bu