far as. >> retailers next week. >> you have that, i think it is a good opportunity to think about that if you are long and you want to protect it, think about it. >> good stuff. great weekend, everybody that does it for us on "options action". back next friday at 5:30.m p. eastern. don't go my mission is simple to headacmake 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 my job is not just to entertain but teach and educate so-call me at 1800-743-cnbc or tweet me @jimcramer. tonight i want to share accumulated wisdom believe me, i've been doing this for a long time because there are so many different things you need to balance to be a great

investor that it would be hard to keep track of everything you do and a lot of this stuff is much more important than the day to day action. without the right discipline, the right frame working the right dare i say philosophy, you're going to get yourself into trouble but i also know big picture financial advice is hard to process a lot of it seems down right contradictory to most people we tell you to have conviction, to stick with the companies you believe in and say you need to be ready to 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 spent themselves. you need to be skeptical but you also need to know when to suspend your belief, 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 has come from, it's where it's headed to.

believe me, i get it i get it take all my rules literally you're going to be running around in circles while tearing your hair out. how do you think i went bald tonight we'll take a step back and try to put this dispolicipl stuff into perspective the thing you need above everything else is good judgement but that's not the thing anyone 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. i try to teach you better ways to think about individual stocks and the whole market i try to give you the tools you need to develop your judgment. all my best professors focused on teaching us how to think, how to think, not teaching us what to think i've always tried to take it from them. i want to teach you how to be a better investor, not just teach you what stocks are good investments. that's a lot to prok secess let's put it into context. when you're managing your own

money, before any other consideration, you need to know yourself i said this before, i'll keep saying it because it's so important. you simply can't know the stocks you should buy if you haven't taken the time to consider what your owner personal objectives are and i can't decide them for you. you need to build your wealth to make a life-changing purchase like a home or get a descent return for retirement. do you have money to burn you're willing to take risk on more speculative propositions? those are different mind sets there is no one-size fits all approach 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 fine 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 afford to risk in the first place these are really important questions that you need to ask yourself before you start trying to pick any given stock. why? because without a clearly defined goal, now have no way to determine which stocks you should be buying your 401 k or ira do not exist in a vacuum. if you try to save up for retirement, stock like netflix might be the most appropriate place to put your capital but if you have a descent sized nest egg and want capital appreciation netflix and the rest of its fast-growing fang cohorts, facebook, amazon, netflix and google look more attractive given that mind set. in short, before you can start making judgments about individual stocks, you need to know what it looks like internally that's the foundation knowing what you need to find stocks that are suitable to your particular needs let me put it another way. if you want to fly across the

pacific ocean, do it in a boeing 747. don't try to fly across the pacific in a ford fiesta if you want to pick up your kids from school in a 747 would be impractical. how about if you're renovating your house so you need to go to home depot for a metric ton of lumber and power tools the ford fiesta is too small no way you'll put it in a 747 packed home depot parking lot but a pickup truck would be perfect. this may sound simple but the same way with stocks when you're saving for retirement, you want low-risk holdings for those of you that don't have time to research individual stocks, you can't really go wrong with the basic low-cost s&p 500 index fund that tries to mimic the performance of the broader market look, i recommend index funds endlessly and will keep doing it

because they are phenomenal. they help the incredible engine of wealth creation, the u.s. stock market america remains -- america is a growing country, it's very business friendly compared to the rest of the world particularly the developed world and when you buy the index fund you're betting on 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 and more money than that. again, first $10,000 index fund. if you're looking to make slow and steady money over decades, that's a retirement investment in a nutshell. you may consider certain individual stocks especially consistent steady eddie because of dividends a 4% yield may not sound that spectacular but even if the underlying stock goes nowhere, the 4% annual return will double your money in 18 years thanks to the magic of compounding of course, not every investor is

simply trying to fund their retirement 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 you can and should have multiple pools of pumoney. your discretionary portfolio to resupport yourself has groun you down and you're no longer able to work that portfolio is where you can afford to take more risk to generate faster profits. make sense for the vast majority, the portfolio will be much less important than the retirement because it's not just retirement if you want to pay for a house, want to send your kids to college, you should take a more conservative approach to managing that money. whatever account you put it in, your strategy for college tuition savings or future house savings should look like the

retireme retirement portfolio than the "mad money" portfolio. get to know yourself bottom line, trust me, i get it. when you get excited about a particular stock, you often want to dive right in i've been there before first, though, you need to consider what you're trying to get out of the market. the answer to the 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 the 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 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. 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 actual earnings per share may be in some cases manufactured literally by tax rate, by buying stock back but you can't read sales. always consider what you're trying to get out of the market before you dive into a stock on "mad money" tonight won't help you with the tight flexibility i'm talking about. i'll reveal the back bends you should be doing to get your portfolio in order and feeling reclemp about your stock 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 >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets. send jim an email to

madmoney.cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.

regular viewers know i've got a lot of rules the result of more than 30 years in the money management business versus broker andhedge fund manager. i've got rules for investing for trading, rules what to do in a rally or sell off for winners and losers that can be a lot octo take in the point is to help you learn from my mistakes and develop your judgment. why you need to have a clear understanding of your objectives before you buy stocks, something more focused than trying to make money. let's pretend you've already done some self-reflection and know what you're trying to accomplish now you can buy individual stocks, enough to fill out a diversified portfolio five to ten names, right hold on. before you buy anything i need you to do one more thing first do the homework. i've covered this before

i'll give you a quick version now. if you invest enough money in a company for it to matter, you need to know what the heck the company does you need to know how it makes its money and how much money it makes. the internet made this process much easier, certainly when the first started the show this is adele ligh a delight. you can go online and read the filings and listen to or read the transcripts of the conference calls, the best way to get familiar with the business and the key met tricks. feel free to read journalism and listen to opinions to accompany itself and the way the stock trades and i've written half dozen books about this topic, okay 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 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. doesn't have to be a professional you can talk to your money, your

kids, a friend the important thing here is that you put your thesis into words that you can basically comprehend yourself. layout why you want to buy this thing and why you think it's headed higher. if there are major holes in the theory or you're relying on wishful thinking, a reasonable adult or mature teenager will be able to catch that once you've done that 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'll say about that process preparing to buy a stock because tonight i'm trying to focus on the bigger picture. let's fast forward a little. once you do the homework you can build a portfolio. any more than ten you likely won't have time to keep up with them all the idea here is that you should be able to do this in your spare turn not that you'll spend money management into a second or third job. how many stocks that which you can follow along obviously and subscribe because i got two

research assistants. you're doing it yourself let's assume you own shares in a bunch of companies you genuinely believe in you have a thesis for each there is no sector over lap meaning you have five to ten companies in distinct industries that don't trade together. in short, you have what in theory is an ideal portfolio what's the most important thing for you to keep in mind? above and beyond everything else you need to know the portfolio won't stay forfeperfect for long unless you're lucky, not all will stay winners. some will be losers. some will do nothing some of the companies you liked best will disappoint you what can i say the game is full of heartbreak which brings me to the next rule, always please, please try to stay flexible you have to be flexible because business by its nature is dynamic, not static. things change. markets change

competitors will under cut existing players on price to take market share. previously well-run companies will start executing poorly and we've seen that time and again customers cancel orders. unforeseen events happen that hurt business and makes some category of stock seem less attractive to the money managers who dominate the market. when something like this occurs, when the story of a company you own shares in changes, then you got to be willing to alcknowlede things are different you should say this is why you need to explain your picks to another person so that you can recognize when your original idea has stopped being workable. for decades so-called experts peddled 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 well, i've got to tell you, that's non-sense 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 goes higher. if the story doesn't pan out or after a long time, there are big changes in the industry, you got to be willing to sell. 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'd save people a lot of money. i bring this up because people hate, hate, hated a m ed admittn they make a mistake. once we make up our minds things are great for coca-cola, we don't want the facts to get in the way of a good story. you know what? you can't afford to fall in love with a stock when you buy shares in a public traded company, you're not swearing to stick with it in sickness and health for richer or poore epoorer you don't need to go to a judge for a divorce. acknowledge when something should change. if you buy a stock because you believe it will take a ton of

market share and fails to do so, don't move the goalpost and search for reasons to hang on. just get out of there. you must be willing to recognize companies will take a turn for the worse. managements make mistakes. ceo's make errors every day. let's pick one let's pick bed bath and beyond literally spent $5.4 billion buying its own stock back from 2013 to 2017, through 2017 at no attempt to boost earnings per share so to speak and therefore take the stock price up but it didn't work. the company lost to amazon and the buy back accomplished next to nothing by the summer of 2018, they had a market capization of less than $2.7 billion they spent 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 bad and beyond weren't flexible. they kept buying back to their own stock in the mistake and

belief it would help don't make the same error. when something goes wrong with the company you own, be ready to stop hoping and start selling. listen, being unwilling to recognize a term for the worse 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 all together before you buy a stock, do some homework and come up with a 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 the way you expect it to, sell the darn stock don't bash your head against the wall recognize things don't always go your way and then move on. liam in massachusetts, liam? >> caller: boo-yah jim. >> boo-yah liam ca. >> caller: i had a quick question index funds you said certain stocks buy at certain times like monthly or quarterly or good price. does that apply to index funds

because you say purchase 10,000 -- >> yes, i'm trying to make it so you don't necessarily come in all at once. a lot of people put the money to work i actually like to space things out, maybe try to catch when you get a real 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. >> okay. >> caller: i'm finding that the prices of the stocks are too expensive so i've started looking at etfs and mutual funds as an affordable way 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 don't update what they own they may be buying in the same stocks that are too pricey you have the same deal you have to decide that the

market is too rich or that group is too rich and therefore not to buy or of course, you just say, you know what? i'll take a long term view and not game it and maybe don't buy all at once but space out the buys matthew in arizona, matthew? >> caller: hey, jim. this is matt, how is it going? >> doing well, how about you >> caller: doing 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. >> cash is short-term investm t investmen investments. longer term take advantage of higher rates and get in there and use the power of compounding. i think the conservative investor who is older should be thinking about treasury. some young person, you sound young, they don't fit. take on more risk. before you own and once you own it, please stay flexible much more "mad money" ahead.

there is not crying i in investing the best i ever found. there is always a bull market somewhere, tonight, i'm telling you where to find it stick with cramer

. we're zooming out and talking about the big picture, the stuff you absolutely have to do if you want to manage your own money. before i get back into it, let me say that 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 underlying companies 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. and that's why van guard invented index funds and the dutch invented bonds for heaven sake if you're going to play the stock market and i use the word play loosely if you 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 inn t history and you can harness that and make it work for you a lot of this comes down to discipline the stuff i've been talking about all night but there is another ultra 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 it. there is a brutal game and you need to make sure you have the right head space if you play it. i cannot stress this enough. for many of you managing emotions will be the hardest part of investing, harder than picking winner, harder than identifying new trends, harder than knowing how to cut your losses why? the market is a harsh mistress

at times owning stocks could 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 you -- and when mistakes lose you money, that can be very 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 the cliff. imagine what it was like for me at my hedge fund before i mellowed out is 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 so i can tell you from experience that this is not a productive attitude. you know what? if you did read "confession of a street addict" you would know

attitude i made a lot of money but i was hell to live with. constantly getting mad at yourself is not sustainable. you'll beat yourself up. it's crazy you'll run out of patience and give up on the asset close i'm not telling you to be the dalai lama when the market punches you and action alert sto stock, if it gets hit, i feel awful. i have to. you can'tafford 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're going to spot opportunities yet, so many of us approach the market with an inferior attitude and state of minds our heads are clouded by negative thoughts that throw us off target you will be in the wrong frame of mind to spot the next opportunity.

let me be your stock market therapist for a moment there are a lot of harmful reoccurring thoughts 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 electron arts, i could have made a fortune. don't get hung up on that and the would have, should have, could have this is wasted damaging emotion. for a long time i took it to the extreme by things i got wrong. i would be obsessed going over the bigness over and over again. it wouldn't just be over i can put it out of my head for action alerts in a couple hours. i'm talking about days on end. i don't do that. took me along time to learn. eventual eventually, i was able to see how destructive playing the world ha

would have, could have, should have could be. if you're an emotional guy like me, i've had to build in all sorts of methods of tricking my mind to not playing this game removing the stock from my desktop and mobile stock list. going in on my skin taking it right off. okay you look at it every day when you scroll down and see it and brings up the bad thought. get rid of it. clear it out if you like it so much, 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 big gain, 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 by punishing yourself don't play the if only game. if you need help curving this 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, could have. devin in florida, devin? >> caller: jim, how is it going? >> real good how about you? >> caller: good, good. >> what do you got >> caller: all right so i'm 25 years old and maxing out a roth ira and i know you've always suggested investing in l low-cost index funds should i be 100% on my portfolio and s&p 500 fund >> well, i actually think what you ought to do is think of it like this. i think you should put the preponderance in an s&p 500 low ca cost and after that pick one or two. that makes it harder basic bedrock s&p and a couple others maybe you like health care, maybe you like tech. that would be my choice. michael in california, michael >> caller: hey, jim, thank you

for taking my call. >> of course >> caller: i had a question about 401 k plan my company put it out and being a novest, i want to know what percentage of my paycheck would be a good starting amount to contribute. >> whatever the maximum you're allowed because what happens is that this, if you use the power of time, the power of come pounding, you will have so much more but you got to put it all in and i advice people, take the max, take the max, take the max. enough with should have, could have, should have. you'll be surprised how much better you decision making is once you stop that much more "mad money" ahead. it is investment wisdom and i'm helping you find the bull market no matter where it's hiding and answering the questions you're sending on twitter stay with cramer

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advice and heartache back when i was running money professionally and didn't know it this is investing wisdom from the late, 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 if the shoe fits, wear it. all night i've been trying to hammer home important bedrock principals of investing and this is essential when some company shows you who they are, believe them or when a ceo tells you business is bad, take their word for it don't try to make excuses. don't bend over backwards so you can keep owning the stock of a company not delivering just get the heck out and 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 quote. because there is another really

valuable insight in here she continues, people know themselves much better than you do that's why it's important to expect them to be better than they are company executives are almost always going to know their business better than you will unless they are being ridiculously negligent they can spend 80 hours a week or more running their company. you have your own job and there literally aren't enough hours of the day to devote half of the time to a single stock that's why it's so important to listen to what the ceos and cfos have to say are when they come visiting on the show or someone else's show, high-level executives are your best resource i wouldn't have them on if i didn't think that. don't get me wrong, you can't just take everything that comes out of a ceo's mouth as gospel there are plenty of executives accessibly promotional or talk

like they have rose-colored cla glasses on their face. i find what i'm looking for are people who aren't wearing these, okay these are actual rose colored glasses. anyway, i try to ask more skeptical questions when my optimism alarm goes off during the interviews 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 never flat out dishonest because lying about material information is a crime so sometimes you theed need to e what they say with a grain of salt but the more cynical among you would be surprised by how many straight shooters you'll find at the highest levels of corporate america. i really believe that. don't -- i don't want to be too cynical here and again, when we have someone on the show with a track record of being candidate, i point that out

when honest smart executives tell you something is going awry, it would be a reason to buy. if you get it right. the ceo. they told us the cloud-based software company would be fine from november of 2008 to july of 2018 sales force gave you a 1% and you had to get in it he was bankable. when the ceo of dominos came in 2010 and told us how he would turn things around, the stock was turning at $10 dominos was at $2$282 they deserved the benefit of the doubt. you missed out on monster moves. and i -- look, i don't want to be too proud here but i said hey, listen, i believe this guy and that's what helps.

it helps to have me say it because i thought about this a lot and talked to a lot of ceos and anybody in the world more important, if management tells you something is wrong, take them extra seriously when a company announces the short fall, you need to wait 30 days a lot of people are attempted to buy negative preannouncement names pummelling into bad news in practice, i found other than rare exceptions, the opposite is the case when business is so ugly that a company is forced to come out early and cut numbers, it means there is more bad news ahead or they wouldn't say anything why? it all comes back to maya angelou. when someone shows you who they are, believe them the first time the negative preannouncement is the first time when they preannounce a bad quarter, they are not just looking at the past but the order book to the future believe me, if there was hope that business would get better, the company wouldn't have to cut numbers between the regularly

scheduled quarter reports. if they thought something could get better not worse, they would keep their darn mouth shut and wait preannouncement signals on going weakness that will continue. i recommend waiting 30 days to see if anything improves before you think about buying that stock and this will really keep you out of trouble because i can count on one hand the number of times when things got better within a month you'll miss great opportune tips sometimes the stock bottoms early but most of the time after 30 days, you sidestep a brutal leg down i've done a lot of homework on this question and i found that 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, it can seem like we live in a post truth world where it's impossible to know what to believe but you should believe executives when they preannounce the short fall. these people don't like slashing their own numbers.

they do it because they don't see much hope of things improving but the time their company scheduled to report the next quarter in the wake of a short fall, you have to presume the stock won't be bouncing back any time soon for the next 30 days treat the darn thing as a falling knife. in short, if you're not a huge fan of maya angelou's poetry, you should trust her investment advice advice stick with cramer. we're pretty different. we'rue in our own ways. somos muy diferentes. muy diferentes. (vo) verizon knows everyone in your family is different. there are so many of us doing so many different things. (vo) that's why verizon lets everyone mix and match different unlimited plans. sebastian's the gamer. sebastian. this is my office. (vo) and now with more plans, everyone gets what they need without paying for things they don't. new plans start at just $35. the plan is so reasonable, they could stay on for the rest of their lives.

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

reason to believe the company must have disappointed and been a bad quarter, right why else is the stock going down often that will be true. but it's not always true sometimes there are other forces at work. stocks will go down on the initial earnings and bounce back when management explains things on the conference call or vice versa which is why i tell you not to jump to conclusions until after you listened to the call which is a huge drag but must be done especially when we're in the middle of earnings season with hundreds of companies reporting, the market makes a ton of mistakes not just about errors in judgment stock prices do not always reflect the actual facts and figures how the business is doing. the fundamentals are a big part of it. the most important part which is why i spend so much time focussing on them and how to understand them. they are not 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 the invisible hand of free

market capitalism, he forgot to mention it's the hand of someone with bad reflexes, lousy coordination and some kind of neurological disorder. and short stock prices do not somehow reflect reality. there is much a product of presumption on wall street and mat c mechanics of the money management status. by the way, this is why it's possible for you to beat the performance of the averages by investing in individual stocks the market worked perfectly, you would never be able to exploit any opportunities because the whole point of this game is to spot stocks that are mispriced so why do i bring this up? because when the action issish rati -- irrational, i don't want you throwing up your hands in disgust and giving 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 the distortions i spent a lot of time talking about the etf of stocks this is a major thing. you can bank on the fact half of the stocks' performance came from a sector meaning how the sector was doing and wall street felt and the other came from the company itself, management your company was in control of half of the destin knee and a good situation as long as you make sure to avoid sectors out of favor with the wall street fashion show you can generally do well by researching companies to predict which would do better with competitors. the rise of etfs changed the equation especially sector but also gimmicks like the dozen or so made up of fang, our acronym for facebook, amazon, netflix and google there is a resurging of the individual power of stocks, the stocks of well-run companies can get dragged down by rip tide fang is the most ridiculous example because when you say

netflix catches a cold, the other three stocks sneeze. if the streaming video-based business of netflix has little to do with the advertising business of facebook, a lot of times you'll get situations where sellers throw the baby out with the bath water. the whole group tends to go down if everyone else is doing well and those are your opportunities. you got to pounce. sometimes the market is just obtuse you'll see companies reporting good quarter after good quarter to no real effect and critical massive money managers figure out yes, things are going well so the next time the business reports strong numbers, the stock sore you need to be patient when the market makes a mistake, it's not worth trying to fight because while markets are often irrational, they can remain irrational longer than insolvent who is an important economist

who is a good money manager. your goal is not to be right but make money sometimes that means being a little cynical about other people's expectations. but hear is the bottom line. don't just assume that stocks that go down deserve it. in the ill mortmmortal words o t client east wood, it has nothing to do with it. your job is to recognize when it's doing something wrong and to try to take advantage of it to try to take advantage of it stick with cramer. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ this is mia's pulse.

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i love hearing from the smartest audience in television. let's get to some tweets first a tweet from @brickhand 66 why when a car naller richard cs in do you and your staff say his name in a high pitch that's reference to the movie "tommy boy." chris farly and david speed. we say richard thank you. now a tweet says hi and any advice for investing in something for a new child and so many options out there do uniform gift of minors to get started. you can do a state by state plan remember, buy gross stocks they have their all lives ahead.

buy high quality growth stocks, the likes we talk about all the time on this show. next up is a tweet from wendy and she says @mad money 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 aka master owe d yoda you're awesome jim cramer mad, mad, okay. yeah all right. that's precisely why my wife loves me so much jim, other thank banks who ben frits from raising interest rates? you know what? not really many other companies, i think when rates go up, people think that the economy is really strong and therefore people buy the industrials but the banks benefit directly because they are able to charge you more when

you go for a loan. they make more money from deposits and loan them and now a tweet from @joey asks jim, i absolutely love getting rich carefully. will you write a book any time soon this is an interesting question because the economics changed radically. i'll work my butt off on something like this and i'll work most nights and every weekend and read the book and it used to be a lucrative business to write books and now it's 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'll take notes to do my research later. i have to tell you, whenever i'm out with people people who are

elderly come out with a list and they will go over this and that and happens all the time to me, it's terrific. i think younger people don't know how to write on a piece of paper. they are putting it into their cell phone they have no list because they have no pencil and paper they ask can you explain annuity assets worth looking into awe knewtneir better off and ken fisher is big pr processer. pick individual stocks term life insurance is a fantastic buy. you're doing things very right but i like you to be in control of your destiny. no fees whatsoever when you buy individual stocks other than commissions. here is a tweet from @gearhead 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. 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. i want you to be careful of that situation. 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. it's the book you can cut your teeth on all right. well, that's all our tweets. well, that's all our tweets. so stick with cramer (in dutch)

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i like to say there is always a bull market somewhere and i promise to help you on "mad money."

>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ narrator: first into the tank is a couple with an innovation in pet products. [ laughter ] hi, sharks. let me introduce ourselves. i'm tara. and i'm jason. we're the founders of pdx pet design.