then japan which is big in retailing because neo-can a the biggest component is fast. want to short that. >> use put spreads for both. >> dan? >> xlf, if you get a pop, that's when you lay 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 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'm just trying to make you a little money. my job is to not just entertain you but educate and teach so call me at 800-743-cnbc or tweet me @jimcramer. there's the federal reserve gauntlet, will they keep chattering about rate increases?

the political gauntlet, might a truce be in the offering? there's the treasury department and the justice department fighting against mergers. will they be kiboshed or not? but next week starts the real mcchai, earnings season, that time of year where stocks march to the beat of a different drum, their fundamentals. let's get to the game plan. on monday, alcoa reports after the bell. normally w normally we'd like to hear about how the end markets are doing because alcoa does a remarkable job with giving you the state of the world when they do their call. i point it out in the "get rich carefully" book that you must listen to alcoa if you listen to any conference call. this time it's different. alcoa is splitting into two companies. the first is a highly engineered proprietary businesses that forges aluminum that produces lightweights cars, skins tablets, creates new truck wheels while building out the skins of buildings and soda

cans. the second is a lower cost maker of commodity aluminum and the stuff that goes io it. right now, the international trade commission is considering whether china is dumping aluminum, depressing the price by subsidizing it in an unfair manner. if only -- you know, before this i only liked the proprietary part of alcoa because of the aerospace sales but if the commerce department slaps on aluminum tariffs like it did with chinese steel, alcoa's plan on aluminum business will do darn well, too. i say listen to the call and buy the company that's about to break itself up after they report, please. tuesday, tuesday is rail day. lots of people have been speculating canadian pacific wants to buy csx, the giant southeast railroad company. you know me, on "mad money," we say never speculate on takeovers where the fundamentals are weak and i believe they might be weak because so much of csx's business is coal and coal is on the outs in this country. talk about a war on coal.

whoa. i think numbers may have come down when they report. even though csx has done a remarkable job of cutting costs all over the place. i want to hear if they will talk about how when the panama canal gets widened they'll have a chance to get more intermodal traffic from asia as the big exporters i believe would much rather deal with east coast ports serviced by csx than west coast ports that are so many labor problems. plus stock is dirt cheap another to put on the buy list but only after it reports. the most important mark roe number of the week comes when we hear about retail sales. the last time we got these numbers they were awful and the government revised the previous months down to boot. it was depressing. i think it was a major domestic reason why the fed held off raising rates. the consumers isn't spending enough to generate good gdp growth. we need to see something positive. you know what you'll hear otherwise? you'll hear presidential candidates talking about an upcoming recession. that's never good for stocks. as far as earnings, wednesday is

huge, wednesday is huge because we get j.p. morgan's numbers and all we know is that this is supposed to be one lousy quarter for the banks. have you seen how they've been trading? how could it be anything else? banks need higher interest rates to make more money and the fed isn't complying with their wishes. j.p. morgan does find a way to make a lot of money. banks have underperformed the s&p for years but as jamie dimon told us yesterday, j.p. morgan has been the best performer of the lost since he took over 14 years ago. let's put it this way, i'd rather know how they're doing than buy the stock ahead of their quarter. my charitable trust, however, already owns the stocks of wells fargo and bank of america, those have been no great shakes either, frankly. a great quarter is probably out of the question for both and i have no appetite for the trust to buy any more. this is a hideous group. bank of america, why do we buy it then? it's the best play on higher interest rates because of its larger deposit base and i believe higher interest rates are coming but i'm more concerned about souring oil and gas loans and they have those, too. the company sells at well below its book value, more than two

bucks lower. that won't matter if it has a huge book of energy loans that has to take charges against them. wells fargo has oils and gas loans, too, we know that, however i believe this bank which warren buffett owns about 10% of will acquit itself well because if jobs are growing and the economy is doing better then wells fargo should generate decent results. i think airline stocks are dirt cheap. i've been telling you that. how cheap? we'll find out when delta reports on thursday morning. when a stock sells at six times next year's earnings that means it can't make those earnings. this time the opportunity may be knocking, especially if you believe as i do that oil is staying lower longer. if there were a stock to buy before it reports next week i think it would be delta. on thursday we also get an intriguing analyst meeting with game stop, the video game retailer. oh, boy, this one has been down on its luck and it's disappointed investors even as the company has sought to become far more than just a game store.

i want to hear game stop has a definitive growth plan to beat the estimates which would make this 5% yielder quite compelling. nevertheless, this one is definitively in the bow-wow chateaux after that last tremendously bad quarter. i'm hoping the ceo can pull a rabbit out of a hat, which is a good definition of what has to occur to win investors' trust. finally friday, citigroup reports. there's periodically been a call for citi to break up. i expect more of the same that we got from other banks and i bet if the other banks before it are bad, then citi will go down ahead of this quarter, too. if it's going down ahead of the quarter and rallies on the number, my suggestion, for traders out there, circle back and pick up shares of the best bank that's already reported but only for trade because this group is a no-fly zone as long as the fed isn't going to raise rates and we're pretty much assured that there's nothing near term that will make this

fed move this month, which is what these banks need to do to get their earnings power going. here's the bottom line. we aren't big fans of the stocks that report next week although the decline in delta ahead of the quarter does intrigue me as does the stock of alcoa but only before they execute the breakup. my advice, listen, learn, find out, sometimes there's not that much money to be made. next week's might be money of them. bob in new york. bob? >> caller: jim, hello. jim, i'm looking to add a defense industry stock to my portfolio and i've narrowed it down to raytheon and northrop. wanted to know which one you consider the gold standard and if rising or slowly rising interest rates will have a significant impact on the industry? >> okay, i think the gold standard is neither, it's lockheed martin, which is why my charitable trust has a big position of it. but if between the two, northrop grumman and raytheon, raytheon has great growth and it's a great international defense story so i would pick raytheon. larry in iowa. larry. >> caller: yes, good morning.

>> well. >> my question, jim, is about the silver bullion at market. years ago it was approaching $50. it's now under $20. do you see that market improving? >> no, i don't want silver. i prefer gold. i have -- since the show began i have always said you need some money in gold. now, i have to tell you, i think the best way to do it is to own the bullion, if you can't own the bullion, own gld, if you insist on stock own rand gold because that's a low cost producer. ian in indiana. >> caller: jim, gonna hit you with a booyah. my question is on western digital. what needs to happen for this stock to go higher? >> they need to streamline this acquisition and cut costs and blow away the numbers because right now i have to tell you, western digital, don't buy. sometimes there just isn't that much money to be made. case in point, next week. so sit back, listen and learn about how a company is doing before you pull the trigger. a lot more "mad money" ahead.

including the rule i follow to avoid wracking up huge losses when i ran my old hedge fund. then the unseen danger of trading. i have words of warning. don't miss this. plus, the one investment that helped me outperform nearly every money manager in the business. it's not a stock, it's not a band. i'll reveal what it is just ahead. stick with cramer!

at pg&e, we believe solar should be accessible to everyone. our partnership with habitat for humanity allows us to provide the benefits of solar power to the types of customers who need it most. pg&e provided all of the homes here with solar panels. the solar savings can mean a lot, especially for low-income families. with the savings that i am getting from the solar panels,

it's going to help me to have a better future for my children. to learn how you can save energy and money with solar, go to pge.com/solar. together, we're building a better california. we're always looking for ways to speed up your car insurance search. here's the latest. problem is, we haven't figured out how to reverse it. for now, just log on to compare.com... plug in some simple info and get up to 50 free quotes. choose the lowest and hit purchase. now...if you'll excuse me, i'm late for an important function. compare.com. saving humanity from high insurance rates. nobody -- i repeat, nobody -- likes to be disciplined. they don't like to be

admonished. they they don't like to follow the rules. i don't blame them. i was a rambunctious kid myself when i started managing my own money and at first i didn't know the rules and then when i learned them i spurned them either because i didn't believe they could help or because they cut off my upside. even if they cushion it had inevitable down side. in other words, the rules kept me from making a huge amount of money when things were going gang busters in order to keep me from losing big money when things went badly. the rules i am discussing tonight keep you in the game even when things are tough and you make those mistakes. [ buzzer sounding ] the rules protect you against your own bad judgment about what's going on in the companies you own or whatever is happening in the market overall. but if you are going to make money using stocks because you just can't get much of a return anywhere else these days -- that's pretty much 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 mistake than if you just do nothing with your money. if you do nothing with your money, you will have a whole lot of nothing to show for it. that's why we are doing a show tonight on how to trade and invest responsibly to make your money work for you. with how to tend it, how to make it grow, how to keep it growing through what we call 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, i want to delve into psychology of stock ownership. one question i am asked repeatedly when people stop me on the street, i go back and forth from the street to "squawk on the street" and wall street or they ask me @jimcramer on twitter is "don't you worry about your stocks?" now, it is true that i don't own any individual stocks, i invest just for charity with all

profits and dividends given away to charitable causes, more than $2 million in the time since i set up my charitable trust. but believe me, i still worry as i want to be able to give as much money to charity as i can. plus, since i disclose everything i own and tell you and explain what i'm going to do before it as part of the bulletins for actionsalertplus.com, you bet i'm concerned. it can be down right embarrassing if i get it wrong. and 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 that something is wrong, that someone knows something i don't know and that i better find out or i won't take advantage of the weakness to buy more, i will have to sell instead that's the chief reason i'm bugging you about reading the news releases, going over the conference calls, particularly that part right before the q&a or guidance and going to the web sites 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 sells don't know why it would be going down, either. so they don't know whether the buy or sell until a big selloff. however, we are talking about psychology here, the psychology of the mind when all that home work doesn't pan out. believe me, it's frustrating. when we select a stock on this show to highlight, we do a mass amount of work on it every single time, the same amount i would do at my old hedge fund if not more so. it's really difficult to see it go down. but there are plenty of times when there is, say, something you can't detect, chicanery, chicanery in the numbers. there's plenty of time when there's puffing by management and we don't really know the truth. i've talked many times on this show about press releases that make things sound much better than they are. the ones that start by saying "we are pleased to report sales increased by 12%" and it sure sounds good, except the consensus of analysts was looking for 20% which means with that 12%, you've got a hideous

shortfall. [ boos ] or worse than that kind of 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 stuff goes on. maybe some hedge funds paid it under the table to get the truth as we've seen time and again for years and years even as many of these hedge fund titans ended up in jail for doing it. in other words, insiders had the call, you didn't. there are also tons of times where you simply own too much stock in the market versus what the market is going to do. we call this being too long. you are too long, as the professionals say, and you can't buy any more stock on the way down because you're so out of capital so you're going to lose money, or at least on paper. or worse, you are borrowing money to finance your 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, wholly a part of what's going on at the individual companies in which you own shares? there are no magic bullets, but i believe that when in doubt, this one principle 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 the that things go wrong and you need to have a scheme to help you deal with those situations when things go wrong, as they inevitably do. i put a discipline trumps conviction sign right on my personal computer to remind me of what to do in the stock market when things go awry.

one of my best forms of protection is to recognize that if you're not tough on your own decision making and you like all of your stocks equally or pretend to like them equally you can't be flexible, you can't change up when things go wrong. that's bad, people. that's why i've come up with a system of ranking my stocks when things are good and times are placid as hedge funds -- these are hedges against yourself for when things get tough. you know, when it's really calm out there you can really good decision making. remember, not all stocks are created equal. when things go crazy, you have to move on to circle the wagon just like a wagon train going out west in the 1800s around a few good stocks. buy them down to get a better basis or average price for your holds. why does this matter so much? because 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 where we wake up and hear the good people on "squawk box" saying that fuchers are down, they're down a great deal and the market looks to open down a

half a percent or down a percent. come on, you've heard that so many times. we have learned so much over the years about what triggers corrections, more on that later, too. but the most important thing is to have a game plan where you know even when you've done all the home work and have tremendous conviction, discipline dictates you must assume there is something you don't know going on with your individual stocks or that there is something happening in the world that's beyond the control of your acumen and you're just being victimized by the events of the moment. my ranking system will indeed get you through the chaotic times, allow you to stay cool and methodical about your money when others around you are fumbling and fretting and deciding they can't take it anymore and have to get out of dodge at the exact worst time. here's the bottom line, in order to deal with the decline in your stocks or in stock market as a whole, you have to accept something is wrong that the companies you own shares in that you might not know about or maybe there's 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 so that 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? >> that is great question. typically a company goes private because they think it's worth more than what the stock market is paying for it. that's key. when you see a company go private, that's typically because the owners of the company, the managers of the company recognize there's so much value in the stockholders and buyers don't they take it private, they make it look better and they tend to bring it public again. how about ann in california, please. ann? >> caller: hi, i haven't seen any prospectus on stocks lately and i'm curious when to tell if a company is going to split their stocks. >> no, companies tend to be

close to the vest about it. when you split a stock, say a 2 for 1 split of the same company so it doesn't necessarily create any wealth at all. it happens to be exciting and i can tell you when stocks do split some of the smaller investors get a chance to buy that they didn't have otherwise. so i'm pro split, but it doesn't create wealth and they tend not to signal when it happens. discipline isn't fun, but it is necessary if you want to make big money in the stock market. when there's 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. headlines may be black-and-white, but investing on their every word could have you drawning in a sea of red. i'll help you spot the true story. plus a correction is always lurking around the corner. i'll help you protect yourself when it strikes so stick with cramer. my mom loves giving me advice. she even gives me advice...

...about my toothpaste and mouthwash. but she's a dentist so...i kind of have to listen. she said "jen, go pro with crest pro-health advanced." advance to healthier gums... ...and stronger teeth from day one. using crest toothpaste and mouthwash makes my... ...whole mouth feel awesome. and my teeth are stronger too. crest-pro health advanced... ...is superior to colgate total... ...in these 5 areas dentists check. this check up? so good. go pro with crest pro-health advanced. mom's right...again!

to want we are going over the rules. the rules make it so losses can be palatable, rules that keep you in the game when others are freaking out. i used to talk about these rules all the time when i was managing money until they became second nature to me. but that was years ago now and when i think about it it's usually in response to a tweet @jimcramer. that's why i dust them off to make sure i'm not ducking their questions, i'm just looking for a better to mat to flesh them out where i can't believe thoughtful. i want to be thoughtful on twitter but it's really hard.

this is the format. so here's a typical question. someone will mention a stork, an oil driller, say that has had a hideous decline. they will ask what do i do now? i turn the table on the person asking why did you buy in the the first place? the followers tend to regard that answer as either arrogant or flip but what i'm really trying to do is figure out if they bought it as an investment, which means it might be fine for them on a longer time horizon and they should by more or for a trade and perhaps they should cut their losses. why does this matter? because one of my cardinal rules is to never turn a trade into an investment. if there's one concept you must take away from this show it's that you must never turn a trade into something it wasn't meant to be, a long term investment so let's talk about the process of buying a stock, the checkdown you must do before pulling the trigger. when i decide i'm going to buy an oil driller i have to declare right up front to myself whether

i'm buying it for trade or investment. what's the difference? i'm buying it because of a specific catalyst, a reason that will drive it higher if it's a trade. that might be a recommendation, a belief things are better than expected when the earnings come out or news about a restructuring like we always talk about. a breakup into several pieces or some other material event that could occur. in other words, there's a moment to pull the trigger, a moment to buy. perhaps because you think that oil is about to spike because of a shutdown of the spigot in russia or maybe problems in the middle east. then there's a moment to sell, sell, sell, when the event occurs and you're done. but you must declare first before you buy. the vast majority of you will buy a stock for the reason and either the reason occurs and nothing happens to the stock so you then decide, darn, i'll call it an investment and i won't worry about buy more if it goes down or perhaps the reason never occurs 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 in the the first place if you didn't think the reason was going to occur so now there's no reason for you to own it in the first place. i have seen a myriad of investors developing a rationale or alibi that they're doing the right thing because they don't make the distinction between a trade or investment. if the reason i bought the oil company at higher oil prices doesn't materialize then i really can't say, i'll hold on to it because it has a swell dividend. for all we know the only thing that would have saved the dividend from being cut is higher oil prices and without them the idea for the trade is going on the dividend. now when i want to invest in a company i buy a small amount to start and hope the market will knock down the stocks 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're trying to start a new investing position. i feel that the stock is down already from its highs because you don't want to invest stock at the 52-week high but there's nothing like a nationwide market wide sale to get you better prices on your buys. trading is the opposite. i put the maximum on at the beginning because i believe the data point or the event is about to occur. i never buy anything for trade without that defined catalyst, that's the word we use, catalyst. i never buy anything for trade just hoping it will go higher as there can 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 am trading if the reason i am trading the stock doesn't pan out. that's why i like to say my first loss can be my best loss. if you buy a stock for a trade, not an investment and it starts going against you in a meaningful way, perhaps a

decline 506 cents is meaningful when you're trading, you may have a problem on your hands. i'm not kidding. when it comes to trading i'm extremely disciplined 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. all other losses tend to be from lower levels and bigger cost to me if i don't operate on this principle. people, anyone watch canning feel the trade going awry but because of ego, pigheadedness they don't want to heed the thunder and they stay in only to have to panic out at lower levels when the catalyst doesn't occur and the whole reason to own the darn 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 there's on a occasion when it starts to pan out and the market doesn't know it, but for the most part it does and you're going to be wrong, just a fact of life. that's a compendium of all the studies i've made, never turn a

trade into an investment. better just to take the loss because believe me, the percentages say you will most likely lose money. 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's the latter that can wipe out all the juicy gains you have and then some. there's much more "mad money" ahead. a stock rise can be quite seductive but chasing doesn't always work. and corrections are as certain as death and taxes. don't miss my take on how to prepare yourself for tin evidentable. plus, it's easy to get attached to your holdings but holding on for too long can burn you in the end. i'll let you know when to cut the cord. stick with cramer. this clean was like, pow!

it added this other level of clean to it. it just kinda like wiped everything clean. my teeth are glowing. they are so white. i actually really like the two steps.

everytime i use this together it felt like leaving the dentist's office. crest hd, 6x cleaning, 6x whitening. i would switch to crest hd over what i was using before. great time for a shiny floor wax, no?

not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. tonight we are going over the rules and disciplines that i

have learned in -- holy cow -- four decades of investing, rules that i want you to know, rules that i want you to just kind of learn by heart like i have. you know, not just like the usual twitter 140 character stuff, this is real stuff here. a lot of people, for instance, don't think a correction is ever going to occur. we get lulled into the market during good times. a lot of people get involved when there's been 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 just expecting corrections and not being fearful of them. when a correction occurs many investors decided they now want nothing to do with the market. that the correction 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're to be anticipated. i learned this from the great peter lynch years ago when he used to run magellan fund. hi said anticipate these. but you can't write off the market when they happen. i like to put things in sports analogy, they become clearer so i tell the story of joe dimaggio after his own personal bull market. his 56-game hitting streak, the most amazing baseball feat of all time, isn't it? when he failed to hit in games 57, should you have traded dimaggio? should you have cut him? 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 56 great days of the market you're going to get something like that. when they happen, they're not a reason to panic, they can be great opportunities, even as people insist that the market is done because the charts are bad, taking out the 200 day moving average, created a bearish cross, a death cross, a hindenburg cross whatever the heck that is or the market is

unpalatable, some claptrap i hear every time the market snaps a winning streak with a couple of losses and we put on or you read bears who come out of hibernation. they like to be right that day. now, given that so many don't expect corrections, here's something that that seems common sense kuala lumpur b sensical but are avoided by people i have met. lots of people wrongly believe in being fully invested at all times. lots of managers think they're supposed to be fully invested everyday. this is nonsense. lots of times the market just stinks so you want to have cash on hand. i'm not saying going in and out of the market, i'm saying have cash, pretty good. a lot of times there's nothing to do except have some cash. in fact, one of the chief reasons i outperform pretty much every manager in the business during my 14 year run as a professional money manager is that there were substantial blocks of time where i had a lot of cash. i was largely in cash including the crash when the market dropped 508 points in one day.

so it was a 22.6% hit to be precise. cash is such a great investment at times. even when it uearns little to nothing. i regard it as a perfect hedge as opposed to shorting the market because the market keeps going higher as it did in 1999 or the year before the great recession of 2008, you can face devastating losses as an overvalued market and can continue to stay overvalued 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 from ma from my charitable trust. always great to have big cash positions when the market gets hammered. that's one of my reasons if you follow my method of how to train around the stocks you know if the market spikes i sell off. trim a little here and there to get ready and reposition myself for the next correction. close viewers of the show know i sell strength and i buy weakness.

when the time is right i almost try -- i almost always have that cash to put the work because i believe so strongly in cash as an option. if you don't raise that cash, here's what could happen. you might end up selling your winners to subsidize your losers. that's another common mistake people make. so many bad portfolio managers and so many befuddled individual investors sell their best stocks so they can hold on to their worst stocks. you can always tell when you see this pattern. you'll be reviewing someone's portfolio as i used to all the time before my rules prohibited giving individual investment advice and the portfolio would be filled with junk and you will say hey what happened to all of your -- i'll say "what happened to your blue chips? the kind of stocks that can best weather the tough times, allow you to come out smiling on the other side?" invariably they say "i had to sell those. i had to buy more of these other stocks because they kept going down." many on twitter seem to have that problem, portfolios riddled with stocks that that have workeds a long time ago. the first thing that gets sold are the best stocks because they

can be sold. there's always a gobid for the good stocks while the bad stocks seem to go down the line and fold under pressure. but when even some of the more admired professionals have a handful of good and awful stocks they don't sell the awful ones because they're down so much. a typical alibi for not taking action. nonsense, they're probably going lower. please don't subsidize losing stocks with winners. if you own companies with deteriorating fundamentals as opposed to good companies with deteriorating stock prices -- common occurrence -- please sell the bad once, take the loss, reae ply the proceeds, move on, don't feel bad for yourself, a lot of times the circumstances have changed for the stock market. the company in which you have invested might do business in russia which could have been great before sochi but with the fight over ukraine portfolios changed. you may have to sell it to something domestic, nothing wrong with that, perhaps a slowdown in the economy has caused people to run towards private label goods which happened in what i called the

depantrying of america. one of the things that blindsided traditional food stocks thought to be safe. or perhaps a terrific drug company like pfizer is making fortunes with big drugs 2348 they went off patent and the generic competition crushed their margins. these stocks were kept because they had gone down and investors bought more of these stocks and subsidized these losers with a sacrifice of winning stocks. let me give you the bottom line. get ready for the correction, it's coming, have cash on hand. don't sell the good ones to subsidize the bad, you'll end up with a terrible portfolio that won't bounce back when times turn better. "mad money" is back after the break. [plumber] i need to be where the pipes are.

so i use quickbooks and run my entire business from the cloud. i keep an eye on sales and expenses from anywhere. even down here in the dark i can still see we're having a great month. and celebrate accordingly. i run on quickbooks.that's how i own it.

rules are a drag, aren't they? i hate rules. but they will keep you from getting blown out and help you navigate the tougher times to that come up when you least expect it. if you aren't prepared mentally, you won't be tough enough to handle these moments and you will flee instead of thinking about what's really right to do or you'll be paralyzed with fear and self-doubt instead of mindful and opportunistic. emotions have to be checked at the door in this business. i often hear people say "i hope a stock goes up" or they ask @jimcramer on twitter doesn't it have to go up? imply ago question that's like doesn't a team have to win a game sometime? people, this is not a sporting event. we have no room for hoping or rooting. we are buying stocks we believe should go higher because of

fundamentals and we're avoiding 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 an ideology. they believe if they pray things will work out, maybe if they're chanting, maybe they will. or they fall in love with these miserable pieces of pain we are the idea that love will somehow b( requited. be realistic. hope, pray, love, rudy, these are all enemies of good stock picking. i can reca the ringing in my ears when i would get off the trading desk with karen cramer, our head trader and she would say "what's the deal with this memorex?" a long defunct company that got crushed in the '90s. i'd say "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 beat down. many times she didn't even ask, she just sold it after if used

to word hope to see if i would buy it back. invariably i didn't buy it back. i was hoping something would happen and when it was sold i felt relief. sometimes stocks do nothing and you get frustrated and you want to sell them. good stocks can do nothing for ages. i remember when berkshire hathaway did nothing for, like, ages. if you're a professional investor at a hedge fund this waiting to be unnerving. you have partners in your fund calling you regularly asking you what you are doing with their money. they don't want to hear you own a bunch of stocks that aren't moving up at once, but individuals have no such pain. individuals can sit on stocks as long as they want. unfortunately, when i counsel patients, many individuals get antsy. they want a gopro, they want a tesla, they want a netflix, they want the gains, give it now. the best stocks require some incubation. do you know how patient i was owning intel? one of the greatest stocks of our generation. for 18 months i watched intel do nothing, paint dry, paint dry, paint dry, nothing at all in the late 19580s. i believed.

i had only a few partners and none of them needed to know every minute how much they were worth. a common strain of those who would call regularly. later in my career when partners hounded me daily -- i hated that -- i would never have held on to intel that long. lots of stories take a lot of time to incubate. when you buy a stock and recognize that it can take a long time to turn, the mark mar such in your mind so you don't just give up and sell it. here's something important to remember, stocks stuck in the mud a long time tend to romp like thoroughbreds when they're freed from the gate. they're mudders. do you have the patient? if you don't, let someone else invest your money, for heaven's shake. no woulda coulda shouldas. second guessing, you make a call, buy cell gene and then it has a patent issue or you sell dupont the day before a noted activist takes a stake in it next thing you know you are filled with self-doubt. that's nonsense.

get it together. the market requires you to have the right head on at all times. you have to be ready to see the ball for the next pitch. there's no time to get down on yourself. do that for fantasy if you cut like brady or something. if you want to be introspective and constructive, brackets in time at the end of each month or the end of a quarter to assess your strategy and stock-picking abilities now second-guess your strategy is to put yourself a loser mind-set. the pain felt. when i thought one of the younger people in my office 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 i insist any time spent saying if only i is time that keeps you get from getting the next stock. karen cramer always believed women are much better traders than men because they lack the second-guessing instinct, she thinks men have far more than women. hey, i'm putting it out there. whatever, she did teach me to steel myself into coming in the next day without the mental

baggage of a screwup so i could swing at the next big pitch. here's the bottom line. this business is not about hope, it's about the fundamentals. don't root for stocks to go higher, pick shares in company companies and they will unless circumstances change dramatically cause you to sell, they'll go higher. be but patient on the good ones and try to keep the self-doubt to a minimum. clear your head. get out there immediately and find out the next big winning idea. there's just no room for shoulda, woulda, coulda. stick with kramer. i askeked my dentist if an electric toothbrush was

going to clean better than a manual. he said sure...but don't get just any one. get one inspired by dentists, with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque and rotates to sweep it away. and oral-b delivers a clinically proven superior clean versus sonicare diamondclean. my mouth feels super clean! oral-b. know you're getting a superior clean. i'm never going back to a manual brush.

the new craftsman pro series riding mowers. ♪ now available with power steering. so you can turn with ease. available with the tightest turning radius in the industry. and powerful v twin engines with up to 26 horsepower. because the beer you drink after you mow your lawn tastes better than the beer you drink after someone else mows your lawn. craftsman. when it matters. great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business.

favorite part of the special we go for what you want. that's right, we got tweets that you've been sending m me @jimcramer #madtweets. our first comes from mark richard, auto dividend reinvestment or take cash and buy selectively, your take? really easy call.

a huge percent only of the gains people have in the stock market over the years come exactly from dividend reinvestment. this is a no brainer and there are very few no brainers and very few free lunches in this business. compounding is the secret behind great wealth, reinvest. "who came up with the way you say bristol maarrrs." can you imagine when karen and i traded together we had a broker that said bristol marrrrs and i figured that was the way that it was pronounced. next question. "which is smarter, add to a holding that has been recently hurt ornish@a new position?" if you don't want that stock lower, sell it. the answer is by more of the lower one or get rid of it.

"a what percent for profits should we sell shares?" this is really important. there's no firm rule but what i like to do is when a stock goes up about 5% 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 house's money. that's the way to do it. always try to fight to get to the point where you're playing for the house's money. and, yes, stay with cramer.

mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of the at&t network, a network that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t.

i like to say there's always a bull market somewhere. i promise to try to find it for you on "mad money." i'm jim cramer and i will see you next time. >> in this episode of "secret

lives of the super rich"... money may not buy you happiness, but $25 million will buy you nirvana. >> those are the gates to heaven. [ laughs ] >> it's the only buddhist mansion that comes with a temple to the god of disco and a super-rich bachelor who needs lots of security. >> unfortunately, i have a lot of crazy ex-girlfriends. >> it's the only agera s in the united states. >> how one man scored the keys to 50 super-rich rides. unveiling the secrets to building a mega-mansion. >> it is the first personal imax theater in a home anywhere in the world. >> luxury cars and fancy hotel rooms don't come cheap, pe