this night. >> broadcasting hall of fame. >> yeah, baby! back to you, ty. >> thank you, guy. that does it for us here on "options actions". don't go anywhere because you know what happens my mission is simple to make your 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'm just trying to make your some money. my job isn't just to entertain but teach and make you money call me or tweet me @jimcramer tonight i want to share accumulated wisdom believe me, i've been doing this thing for a long time because there are so many different

things you need to balance that it can be hard to keep track of everything you need to do and a lot is much more important than day to day action. without the right discipline, frame work, dare i say philosop philosophy, you'll get yourself into trouble but i also know that big picture financial advice cob haan be ha process. a lot of it seems down right contradictory to most people we tell you to have convictions and stick with the companies you believe in and change your mind on the dime. you need to be cautious because it's so dangerous out there but you also need to be ready to pounce on opportunities when they present themselves. you need to be skeptical but also need to know when to suspend your belief, your disbelief. you need to avoid chasing stocks that have run too much, but you also shouldn't care too much where a stock is coming from if you believe it's headed higher you know the rules it doesn't matter where a stock is coming from but where it's headed to.

believe me, i get it i get it take all my rules literally and you're going to be running around in circles tearing your hair out how do you think i went bull tonight we'll take a step back and put this discipline stuff into perspective if you pick your own stocks, the thing you really need above everything else is good judgment good investing judgement is not anything someone can teach you in an hour of television or a year of television for that matter that's why i try to help you build good habits and better ways to think about individual stocks and the whole market. the tools you need to develop your own judgment. my best mr. feprofessors focuse teaching how to think, not what to think i've always tried to take muy cu from them. the problem is, that's a heck of a lot to process so let's try to put it in context. first and foremost, when you're managing you're own money,

before any other consideration you need to know yourself. i've said this before, i'll keep saying it because it's important. you can't know which stocks to buy if you haven't taken the time to consider your own personal objectives and i can't decide them for you. you need to build your wealth to make a major life-changing purchase like your home. do you have money to burn you're willing to take risk on more speculative propositions those are different mind sets. the truth is, there is no one side fits all and anybody that tells you differently is dangerously misinformed or flat out lying to you probably in order to sell you something, but far too often people invest in the stock market with the simple goal of making some money. yeah, all we want to do, want to make money, everybody wants to make money but how quickly do you want that return are you willing to risk to get there? how much can you even afford to

risk in the first place? these are really important questions that you need to know before you start and because that will clearly define a goal. you have no way to determine which stocks you should be buying in other words, your 401 k or ira do not exist in a vacuum if you're trying to save up for retirement, netflix might be the most appropriate place to put your capital and you have a descent-sized nest egg and you want appreciation, netflix and the rest of its fast growing facebook, amazon, google, alphabet, they seem -- let's just say they start to look more attractive given the mind set. in short, before you can start making judgments about individual stocks, you have to figure out what your own internal yard will look like so you can find stocks suitable to your particular needs let me put it another way. if you want to fly across the

pacific ocean, you do it in an airport. you don't fly in a ford fiesta if you want to pick up your kids from school, taxing down main street in a 747 would be impractical and would be much better with the ford fiesta. how about if you're renovating your house and you need to go to home depot for limber and paint, the ford fiesta is too small you won't fit it in a packed home depot parking lot. the pickup might be perfect. the same way with stocks when you're saving for retirement, you want low-risk holdings with a slow and steady return for those of you that don't have time to search the stocks, you can't go wrong with a basic low-cost s&p 500 index fund that tries to mimic the performance of the broader market. i recommended index funds endlessly because they are phenomenal

at their best they help the incredible engine of wealth creation that is the u.s. stock market america remains -- america is a growing economy and business friendly to the developed world and when you buy an s&p 500, you're betting on the long-term performance. you know what you're betting on? progress historically that's a very good bet. that's why i always say that you need to invest your first $10,000 in an index fund don't bother to try to pick individual stocks until you have more money than that again, first $10,000 index fund. if you're looking to make slow and steady money over a period of decades, that's a retirement investment and individual stocks like consistent steady companies with big dividends because of compounding. a 4% yield may not sound spectacular but if the stock goes nowhere, the 4% annual return will double the money in 18 years thanks to the magic of compounding. of course, not every investor is trying to fund their retirement.

even if you are, that may not be the only thing you want to do with your savings. this is another important point. you can have multiple objectives and multiple pools of money. i like to break things up into the retirement portfolio and the extra money you don't need to support yourself after late-stage capitalism has ground you down and you're no longer able to work that portfolio is where but mighty people in the portfolio will be less important than the retirement because it's not just retire the if you went to pay for a house, you want to send your kids to college, take a more conservative approach to managing the money whatever account you put it in, your strategy for colleague tuition savings or future house savings should look more like your retirement portfolio and

please and the rabbit hole trust me, i get it when you get excited stock, you want to dive in. i've been there before first, you need to consider what you're trying to get out of the market the answer to that question is not going to be the same for everyone but everything else stems from it. you can't make judgments about stocks until you know what characteristics you actually value. let's go to paul in texas. paul >> caller: boo-yah, jim. >> boo-yah, paul. >> caller: i've noticed companies, a lot of them will exceed on one and miss on the other in reference to revenue and earnings per share, so as a shareholder in the companies i'm looking for, if they are going to exceed one and miss one, would it be more important for them to exceed on revenue or would it be more important for them to exceed on earnings per share? >> holy cow, what a great question because i've actually done a huge amount of research and thank you, paul, for asking. it's revenue growth.

we want to see pure revenue growth that means that there is demand for the product. the earnings per share are manufactured by tax rate and buying stock back. okay no advice sell always consider what you're trying to get out of the market before you dive into a stock on "mad money" today help you with the flexibility i'm talking about. i'll reveal the back bends you should be doing to get your portfolio in order and feeling about the stock fix? i'll tell you why it's time to snap out of it and how the late great maya angelou offered some of the best investing advice i've ever heard. so stick with cramer. >> don't miss a second of "mad money. follow @jimcramer on twitter, send an email to

madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to mad money dot cnbc.com (osamah) cancer is... the ugliest disease mankind has ever faced.

(henry) i thought it was unfair. when-- when you hear those words that you get diagnosed with cancer. (osamah) successfully treating it still remains one of the most enormous challenges facing us today. we realized that, if we developed the technology that could take 2-dimensional patient imaging and convert it into 3-dimensional holographic renderings, we could enable surgeons to dissect around the cancer so we can precisely remove it. when we first started, we felt like this might just not be possible because computing power just wasn't there, but verizon 5g ultra wideband will give us the ability to do this. we won't rest until we see this technology being able to change lives.

regular viewers know i've got a lot of rules the result of more than 30 years in the money management business versus broker and hedge fund manager and commentator. i got rules for investing rules for trading and rules what do in a rally and picking winners and avoiding losers. that can be a lot to take in as i mentioned before, the point of all these rules is to help you learn from my mistakes and develop your own judgment. i just explained why you need to have a clear understanding of your own objectives before you start buying stocks. something more focused than merely trying to make some money. let's pretend you've done some self-reflection and you know what you're trying to accomplish know you can start buying individual stocks enough to fill out a diversefied portfolio five to ten names, right? hold up. before you buy anything, i need you to do one more thing first, you have to do the homework i've covered this before

i'll give you a quick version now. if you invest in a company, you need to know how the company does and how it makes the money and how much the internet made this process easier when i first started the show, this is adele lig delight you can go online and read the filings and listen to or read the transcripts of the conference calls which i regard as the best way to get familiar with the business and the key met tricks that will drive the stock. feel free to reach journalism and opinions from both companies itself and the stock trades and written -- i don't know, a half dozen books about how to do the homework the actual research is just part of doing the homework. after you've learned what you can and developed a thesis, a theory about why you think the stock is set higher, there is one final step you have to explain that theory to another living, breathing human being. it doesn't have to be a professional you can talk to your mom, your

kids, a friend the important thing is you put your thesis into words that you can basically comprehend it yourself layout why you want to buy this and why it's headed higher if there are major holes in your theory or rely on wishful thinking, even a mature teenager will be able to catch that once you've done that, though, then you are ready to pull the trigger. for those of you tuning me out because you can't stand to hear another word about homework, i'm done that's it. that's all i say about that process preparing to buy a stock because tonight i'm trying to focus on the bigger picture. let's fast forward once you've done the homework, you can build a diverse versifi portfolio five to ten stocks the idea is you should be able to do this in your spare time, not that you'll turn money management into a second or third job. have so many stocks for action alerts which you can follow along and subscribe.

i got research assistance. you're doing it yourself let's assume you own shares in companies you believe in you have a thesis for each one there is no sec tar ovtor over p which means you have distinct industries with diversification. in short, you have what is an ideal portfolio. what's the most important thing for you to keep in mind? above and beyond, the perfect portfolio won't stay perfect for long those five to ten stocks you thought were winners, unless you're certainly lucky, not all of them will stay winners. some will be losers. some will do nothing some of the companies that you liked best will disappoint you what can i say the game is full of heartbreak which brings me to my next rule. always please, please try to stay flexible. you have to be flexible because business by its very nature is dynamic, not static. things do change and markets

change and new competitors under cut existing players to take market share and start executing poorly and we've seenthat time and again. customers cancel orders. unforeseen events happen that hurt business or make some category of stocks seem less attractive to the money managers who dominate the market. when a story of a company you own shares in, you have to be willing to acknowledge things are different. the reason you gave for buying a stock is no longer valid, this is why you need to explain your picks to another person so you can recognize when your idea is unworkable for decades experts peddle the idea when you buy a stock, you need to be prepared to hold on to it until the death of the universe how many times have you heard someone say buy and hold buy and hold i got to tell you that's nonsense don't get me wrong i would love to buy a stock and

hold it from here to eternity because the story pans out and the darn thing keeps going higher at the story doesn't pan out or after a long time, this are big changes in the industry, you got to be willing to sell. at least sell some that's why i always tell you it's buy and homework, not buy and hold i wish they would adopt buy and homework we would save people a lot of money. i bring this up because people hate, hate, hate admit when they made a mistake they hate selling anything because they are worried about taxes but once we make up our minds things are great, you can't afford to fall in love with the stock when you buy shares in publicly traded company, you're not joining thestock in holy matrimony and don't swear to stick with it in sickness and health and richer or poorer. acknowledge when something changed. if you buy a stock because you believe the underlying company will take a ton of market share

and fails to do so, don't move the goalpost on yourself don't search for reasons to hang on just get out of there. you must be willing to recognize that companies can take a turn for the worst. managements headacmake mistakes. ceo make bad errors every day. let's pick one let's pick bed, bath and beyond. you may know that. spend $5.4 million buying from 2013 to 2017 and no fate attempt to boost earnings per share by shrinking the denominator but it didn't work. the company kept losing share to competitors like amazon. by the summer ocf 2018, there wa $2.7 billion they spend twice that amount on the buy back if they put that money in a mattress, the company would be worth twice as much. you know what their mistake was? the guys running bed bath and beyond weren't flexible. they kept buying back in the

mistake and belief it would help, don't make the same error. when something goes wrong with the company you own, you are ready to stop hoping and start selling. listen, being unwilling to recognize the term for the worst as bad as it might be, almost always seems to lead to much larger losses than you've already accrued. the bottom line, let's bring it together before you buy a stock, do homework and come up with the thesis a reason why you think that stock is headed higher, once you own it, please stay flexible if your thesis doesn't play out, sell the darn stock. don't keep bashing your head against the wall recognize that things don't always go your way and then. >> sell, sell. >> move on. >> liam in massachusetts. >> caller: boo-yah, jim. >> boo-yah. >> caller: i had a quick question index funds >> sure. >> caller: you say with certain stocks, buy them at certain times like monthly or quarterly or at a good price you say to purchase $10,000.

>> what i'm trying to do is make it so you don't necessarily come in at once a lot of people put the money to work i like to space things out and catch, when you get a real downtu downturn, if you put your money in before then you can't take advantage of it. that's why i like to be flexible mike in texas, mike? >> caller: hi, jim, thanks for taking my call. >> of course >> caller: jim, i'd like to own some individual names in the tech space but i find that the prices of these stocks are just too expensive so i've started looking at etfs and mutual funds as an affordable ware to gain exposure and i'd really like to hear what your thoughts are on the matter what do you think? >> one of the things i don't like, they may be buying the same stocks you think are too pricey that's what your doing, the same deal you have to decide that the

market is too rich or the group is too ruich and not to buy or f course, say i'm going to take a long-term view and not game it and maybe all at once but space out your buys. matthew in arizona >> caller: hey, jim, this is matt, how is it going? >> well. how about you? >> caller: good, couldn't be better i got a thing for you. is it a good idea to invest in the government if so, should it be short term or long-term investment? >> cash is short term and longer term you want to take advantage of higher rates and get in there and use the power of compounding. ator who is older should think of treasury you need to take on more risk, not less got your whole life to make up the money if you lose it before you own a stock, come up with a thesis why you think it's headed higher and once you own it, stay flexible.

much more "mad money" ahead. there is not crying in investing. why it's time to take emotions out when it comes time to pick stocks and how maya angelou gave me some of the best investment advice i've heard and i say this always a bull market somewhere every night, right tonight i'm telling you where to find it. stick with cramer. this is the couple who wanted to get away

who used expedia to book the vacation rental which led to the discovery that sometimes a little down time can lift you right up. expedia. everything you need to go. tonight, we're zooming out and talking about the big picture. the stuff you have to do to manage your money in the stock market before i get back into it, let me say if you don't feel like reflecting on what you need from the stock market, if you don't want to do the homework, if you don't want to watch the under lying come opinion knees and give up on the stocks when something goes wrong, nobody is forcing you to do that there is no gun to your head

it's okay if stock picking is not for you. that's why van guard invented index funds. so if you're going to play the stock market, i use the word play loosely if you're going to invest in it, then you should put in the effort to do it right. don't you think? i think stocks are the greatest engine of wealth creation in history and you can harness that and make it work for you if you know what you're doing all right? a lot of this comes down to discipline the stuff i've been talking about all night but there is another important component. call it the emotional side of the equation you need the right attitude toward the market because without the right attitude, stocks will break you. i mean, there is a brutal game and you need to make sure you have the right head space to play it. i cannot stress this enough. for many of you managing emotions will be the hardest part than investing, harder than picking winners and identifying trends and knowing when to cut your losses. why? because the market is harsh.

at times owning stocks can feel like being in an abusive relationship but we keep coming back because long-term it is a great way to try to make money the thing is, unless you can perfectly predict the future, you're going to make lots and lots of mistakes it's inevitable. when mistakes lose you money, that can be tough to handle. you need the patience, the patience of the dalai lama to not get upset when you buy a stock and it falls off a cliff imagine what it was like for me before i mellowed out. i was the opposite of the dalai lama when i got something wrong, i would flip out you did not want to be around me on a down day especially if i was way too long i can tell you from experience, this is not a productive attitude if you did read "confession of a street addict" you would know the attitude i was hell to live with.

i know better than anybody you need to remain calm because constantly getting mad at yourself is not sustainable. you'll run out of patience and giving up on the asset class i'm not telling you to be the dalai lama or a buddhist monk to be a good investor it's okay to get mad or sad when the market punishes you with its behavior i still do if my stock gets hit, i feel awful. i do i can't get it out of my system but you know what? i have to. you can't afford to punish yourself the market is brutal enough on its own. in other words, get your head on straight your head matters in this game you need to have it on right every day if you spot opportunities. yet so many of us approach the market with an inferior attitude and state of mind. our heads are clouded by negative thoughts that throw us off target making the us do the wrong thing. you'll be in the wrong frame of mind so let me be your stock market

therapist for a moment there are a lot of harmful reoccurring thoughts you can have that will mess with your judgment but the worst of the worst, when you think to yourself if only, if only as in if only i acted sooner on electronic cards or if only i stayed short i could have made a fortune. don't get hung up on that. don't get hung up on the would have, should have, coulds have this is wasted damaging emotion we're talking about. it destructive to the positive sipsychology you need. for a long time, i took it to an extreme and sit and be memorized but things i got wrong and obsess over and over and over again. it wouldn't just be over i can put it out of my head in a couple hours i'm talking about days on end. not anymore. i don't do that. took me a long time to learn but eve eventually, i was able to see how playing the would have,

could have, should have game could be if you're an emotional guy, you need to trick yourself in a pattern of thought i had to build in all sorts of methods of tricking my mind to not play the game removing the stock from my desktop and mobile stock list going in, all my skin taking it off. okay you look at it every day and scroll down. just clear it out. buy it back but don't tell me what you could have done or should have done you didn't whether you walked into a big loss or missed out on a big game, it's irrelevant. stop beating yourself up for heaven sake. bottom line, the stock market can be punishing enough. you don't need to make things harder don't play the if only game. if you need help curving this kind of destructive thinking, go to that extreme. take the stocks off your monitor or portfolio watch, off your cell phone you'll be surprised how much

better your decision-making becomes when you stop the would have, should have, coulds have devin in florida, devin? >> caller: hey, jim, how is it going? >> real good how about you, devin >> caller: good. good. >> what do you got >> caller: all right i'm 25 years old and maxes out a roth ira and i know you always suggested invest income low-cost index if you believfunds. >> right >> caller: should i be 100% in index funds or multiple infectiindex funds to build a diversified portfolio? >> you should put the preponderance in an s&p 500 and after that pick one or two i don't want you to be mutual fund to mutual fund and a couple of others. maybe you like health care, maybe you like tech. that would be my voice michael in california, michael >> caller: hey, jim, thank you

for taking my call. >> of course. >> caller: i had a question about 401 k plans, my compan just put out their 401 k plan and being a novembst, what percentage of my paycheck would be a good starting amount to contribute. >> whatever the max you're allowed because what happens is that this -- if you use the power of time, the power of compounding, you will have so much but you got to put it all in and i always advice people take the max take the max take the max enough with the would have, should have, could have. don't play the if only game. you'll be surprised how much better your decision making comes once you stop that much more ahead. i see your true colors shining through. it's not just a great song, it's investment wisdom. i'll tell you why. i'm helping you find the bull market no matter where you're hindiding and i'm answerg

the questions you send on twitter. stay with cramer so ...how are you feeling - on a scale of one to five? wait... one to five? when it comes to feelings, it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry, clive! actually, really angry. thank you. and seat 36b angry. you're clive owen. and you're barefoot. yeah... there's also apprehension. ...regret... ...relief. oh and there's empathy... ah, i got this in zurich! actually, what's the opposite of empathy? but what if your business could understand what your customers are feeling... and then do something about it. you can turn disappointment into gratitude. clive, you got to try this. i can't i'm working. turn problems into opportunities. thanks drone. change the future of your business change the whole experience.

alright who wants to go again? i do! i do! i have a really good feeling about this. you mighyour joints...ng for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

let me give you a piece of advice that would have saved me a lot of cash and more heartache back when i was running money

professionally but didn't know it this is some genuine sage investing wisdom from the lake great maya angelou when someone shows you who they are, believe them the first time i know she wasn't actually talking about publicly traded companies but man, if the shoe fits, wear it. i've been trying to hammer home investing and this is essential. when some company shows you who they are, believe them the first time when a ceo tells you business is bad, take their word for it. don't try to make excuses. don't bend over backwards finding justification so you can keep owning the stock of a company that's not delivering. get the heck out at least until the smoke clears and you can better assess the damage the better i do for my charitable trust, it's because of this rule, the worse i do, well, you know what i'm talking about. let me read you the rest of the maya angelou quote because there

is a variable insight in here. she continues people know themselves much better than you do that's why it's important to stop expecting them to be something other than who they are. all right. same thing holds true in the corporate world. companies executives are almost always going to know the business better than you will unless they are being ridiculously neglect they have access to information you don't. they can spend 80 hours or more investing money full-time time, there literally aren't enough hours in the day to devote half of that time to a single stock that's why it's so important to listen to what the ceos and cfos have to say on the conference call or come visiting on the show or seven someone else's show high level executives, they are your best resource i wouldn't have them on if i didn't think that. doesn't get me wrong, you can't just take everything that comes out f aof a ceo's mouth as gaos.

what i'm looking for are people not wearing these. okay these are actually rose-colored glasses. i try to ask more questions because i don't want to -- i can't have you get snowed by watching the interviews that i do occasionally ceos can be misleading, almost never flat out dishonest because lying about material information is a crime. so sometimes you need to take what they say with a grain of salt if not a full carton of mortin's iodized. how many straight shooters, you'll find, i believe that, i don't want to be too scenical here and again, when we have someone on the show with a track record of being extremely candidate or reliable or both, i try to point that out. it matters when honest smart executives

tell you something is going awry, you should believe them and when they say it's going incredibly well, the might be a reason to buy. this can be profitable if you get it right so let's take an example when mark, the bankable ceo of salesforce.com came on the show during the depths of the great rescission and said the cloud based software would be fine, you had to grit your teeth and buy it from november of 2008 to july of 2018, sales force gave you a 1,900 the 1,900% gain when you had to get it in when he said things were fine when patty doyle came on in february of 20110 and said how they would turn things around, and $2, these guys earn the benefit of the doubt and didn't miss out on some monster moves and look, i don't want to be too proud here but say hey, listen, i believe this guy and that helps.

it helps to have me say it because i thought about this a lot and talked to for and that tells you something was wrong or take them extra seriously. whether a company announce as short fall, you need to wait 30 days a lot of people attempt to buy as they are pummelling on to bad news and bad lows. in practice, i found that other than rare exceptions, the opposite is the case when business is so ugly a company is forced to coal out ugly, it means there is more bad news ahead or they wouldn't say anything why? it comes back to maya angelou. when someone shows you who they are, believe them the first time and the preannouncement the first time when they announce a bad first quarter, they aren't just looking at the past but the order back to the future if there were any hope the business would get better, the company wouldn't have to cut numbers between the quarterly reports.

if they thought something could get better, not worse in the next 30 day, they keep their darn mouth shut and wait the on going week will continue. that's why i recommend waiting that 30 days to see if anything improved before you think about buying that kind of stock and this will really keep you out of trouble because i can count on one hand the number of times things got better within a month. sure now you're going to miss great opportunities like i said. maybe a half dozen sometimes the stock bottoms early. most of the time after 30 days, you'll sidestep another brutal leg down i know 30 days sounds arbitrary but i've done a lot of homework and found it usually takes at least a month for the bad news to get fully baked into the stock price, if not longer the bottom line, sometimes it can seem like we live in a post truth world where it's impossible to know who to believe but the most skeptical among you should believe executives when they preannounce an earnings short fall they don't like slashing their own numbers.

they do it because they don't see much hope of things improving by the time their company is they had duscheduled the next quarter the stock won't be bouncing back for the next 30 days, you should treat it as a falling knife. in short, if you're not a huge fan of maya angelou's poetry, you should trust her investment advice stick with cramer.

oh, wow. you two are going to have such a great trip. thanks to you, we will. this is why voya helps reach today's goals... ...all while helping you to and through retirement. can you help with these? we're more of the plan, invest and protect kind of help... voya. helping you to and through retirement.

i spent a lot of time tonight talking about the many ways in which you can make mistakes and the need to guard against them by knowing when to admit that you're wrong. let me be clear, the market can be as long as any individual investor the market makes mistakes any day. this is my next big picture, don't assume the action necessarily makes sense. a lot of stocks are up and down for the wrong reason or no reason or out right stupid reason when a company reports earnings and a stock goes down, there is an impulse to believe the company might have disappointed

and must have been a big quarter. why else is stock going down you know what? often that will be true. but it's not always true sometimes there are other forces at work. stocks will go down and bounce back when management explains things or vice versa which is why i always tell you not to jump to conclusions until after you listen to the call which is a huge drag but must be done in the middle of earnings season with hundreds of companies reporting, market makes a ton of mistakes but not just about errors and judgment. stock prices do not always reflect the underlying fundamentals and how the business is doing. they are a big part of it. over the long term, the most important part which is why i spend so much time focussing on them butthey aren't the whole picture. you have to understand a stock market is first and foremost a market of stocks and just like any other market, it's prone to all sorts of distortions. when adam smith wrote about the invisible hand of free market

capitalism, he forgot to mention it's the hand of someone with bad reflexes, lousy coordination and possibly some kind of neurological disorder and short stock prices do not somehow reflect reality all the time by magic. there is much as wall street and mat c ka c mechanics. by the way, this is why it's possible for you to beat the performance of the averages by investing in individual stocks if the market worked perfectly you would never be able to exploit opportunities because the whole point is to stop stocks mispriced why do i bring this up when the action is irrational, it can be frustrating. i want you to take advantage of the moments where stock prices are wrong or at the very least, don't throw up your hands in disgust and give up on the enterprise because nothing makes sense. that would be bad. remember when i say about stocks, greatest wealth engine created. let me go over some of the

largest distortions. i spent a lot of time talking about the etf of stocks this has become a major issue for the market for most of the my investing career, half of the stocks performance came from a sector meaning how the sector was doing and how wall street fell and came from the sexuactual fortune itself it was in control of half of the destin knee. you can generally do pretty well by researching companies to predict which would do better than competitors but the rise of efts changed the equation, especially sector efts and gimmick ones that are made up of fang, our acronym for facebook, amazon, netflix and google and there is resurging o

stocks when netflix k5catches a cold, h others sneeze. they have little to do with the advertising business of facebook, a lot of times you'll get situation where is sellers throw the baby out with the bath water. if the word industry reports bad numbers, the rest go down and those are your opportunities you got to pounce. sometimes the market is just obtuse you'll see companies report good quarter of good quarter to no real effect and a critical mass figures out yes, things are going well so the next time that business reports a strong number, the stock sores and in those cases you just need to be patient. the caveat is sometimes when the market makes a maistake, it's nt worth fighting it. they can remain irrational for longer than you can remain solve solvent. an important economy mosteist io

money manager. your goal is not to be right but make money sometimes that means being scenical about other people's expectations here is the bottom line. don't assume that stocks that go down deserve it. in the immortal words of clientest wood, deserve has nothing do with it the market will make mistakes. your job is to recognize when it's doing something wrong and to try to take advantage of it stick with cramer. ch enough? everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market.

i love hearing from the smartest audience in television. that's you let's get to some tweets first tweet, he says @jimcramer, why when a caller named richard calls in do you and your staff say his name in a high pitch that's a reference to the movie "tommy boy." chris farly and david spade. when a caller is named richard, we say richard a tweet says hi, any advice for new parents investing in something for the newborn child. education, savings for tax free savings. so many options out there. you can do some to state by state but your gift to minors is the way to do it buy growth stocks. they have their whole lives

ahead to make the money back buy high quality growth stocks next up is a tweet from wendy, i work with male teens and they think you sound like master yoda, lol i'm learning and so are they thank you, jim cramer. you're awesome @jimcramer. okay yeah all right. that's -- yeah that's precisely why my wife loves me so much okay here is a tweet from russ, jim, other than banks who benefit from raising interest rates, you know what? not really many other companies i think that when rates go up, economy is really strong and people buy the industrials but the banks benefit because they charge you more. they make more money from your

deposit and lend them when rates go higher and now a tweet from joey and he asks, jim, i absolutely love getting rich carefully. will you be writing another book any time soon? very interesting question because the economic haves chan changed. i'll work most nights and almost every weekend and then i'll read the book and it used to be a very lucrative business to write books. now it's just a labor of love and i have other labors of love i want to perform including my garden here is a tweet from amy and she says i may not always watch mad money but when i do, i take notes so i can do my research later at nerd alert at mad money. i have to tell you, whenever i'm out with people, and i will say this references because my late dad would say this, too. particularly people who are

elderly who are playing the stock market, they come out with long lists of what they took down and i absolutely love it and they will go over i like this and that and it happens all the time to me and i think it's terrific i think younger people don't know how to write down on a piece of paper anymore, that's the difference they are immediately putting it into their cell phone. they have no list because they have no pencil or paper. here is a tweet and they a ask @jimcramer, love the show. can you explain annuity. i'm 43 with a descent retirement nest egg i would say pick individual stocks and etfs and term life insurance is a fantist 'titastiy no fees whatsoever buy individual stocks other than the commission here is a tweet from @gearhead and he asks what is really going

on with inexpensive stocks with high yields? for example a $7 stock with 11% yield thank you love the show. okay, what is going on there is a classic red flag meaning that people have gotten way too complacent and when a yield is that -- when a dividend is that high or distribution is that high, it's often unsustainable. here is a tweet fro from @jaystanley can you suggest reading for a young first-time investor? i want you to go to amazon and hit up the name peter lynch. okay look at one up on wall street. the book i cut my teeth on it's the book you can cut your teeth on all right. well, that's all our tweets. so stick with cramer

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

narrator: in this episode of "american greed"... vitaly borker rules an $18 million eyewear empire hawking fake luxury designs online. there is no crime that i've ever come across where you can make this much money and face such little risk. everybody wants something designer, something name brand for cheap. he had ray-ban, prada, gucci, chanel. narrator: customers think they're scoring high-end bargains. instead, they're getting hustled with bogus brands and violent threats when they dare to question vitaly borker. he just went nuts -- started yelling at me, started cursing at me.