it's been up, it's been down time to buy it >> bonn that win >> i'm not the biggest bull when it comes to retail i'd be a better seller of xrt. >> steve >> hidden a.i. play, micron. >> thank you for watching"fast money. special series, "mad money" back to school starts right now

>> before you recommend that on a one-to-one level, you have to know what that person wanted. what do they want from stocks connect you have to know if the stock is right for them. whether it is right for anyone rather than the most risky people out there, they are like bungee jumpers. let's start, i want you to ask yourself, what is your tolerance, how much risk do you want out of the stock gimmick stocks are peculiar pieces of merchandise when he asked about it. it is not worth as much at the moment. there are all sorts of warranties. if it burned down the next day,

before you buy it, you have got to buy insurance if it does burn down, you can get your money back. phones, pcs, washers, dryers, you name it. stocks, you buy nikes and the next day the doctor says there has been a slowdown in jordan, you can't go back and say chief, you never told me this could happen. i am down for hundred bucks with too thousand shares. i am losing so much money, i want my money back. back then, it would have been and comment on the broker. maybe the broker should never recommend stocks to begin with. you get the point. you can't take stocks back at the same price. there is no real insurance. you could buy expection underneath, but it will lower the risk dramatically. it is incredibly important. you are going to learn how to

measure your own tolerance. these days with brokers there is no real protection. just a sign that says you get it. you may not know what you are getting into. tonight's bottom line, that stops here. by the end you will know what suits you and what doesn't no matter what your age or your style. to put it another way, no, just buy her a be a little more aware of what you might be committing your hard earned dollars to when you purchase a stock. let's go to kyle in new jersey. kyle. >> jim cramer, how are you you make >> i am good. how can i help you? >> so i was wondering, i am an investment club member and this is my first time talking. i take it personally, i love you to death. i would like to know how often you look at rsi four data when

you are buying or selling a stock. >> look to the back, i have to say i look all the time. i do not like to buy stocks. that is one of the reasons i do it off the charts. i think it is incredibly important because others do it. anything that is important to others is important to me. >> mark in new york, mark. >> what is happening? >> what happened to i.r.a.. reinvent the cash in my account at another time. >> i prefer you to let it run unless the stock is sour because i just think i don't want, you have been investing in a long-term i.r.a. and i have to believe what you stop in the socket will continue. if you have to take a loss, take a loss, but keep investing in your i.r.a. nick in florida, nick.

>> question, when you help your children invest, is it more important to save up and give them a big lump of money when they get married or set them up early, literally an infant, take the baby, a small amount in dividend stocks, which is more important, the size or the height of the bill that compounds at? >> i love that. i can't help my kids. they had to do that on their own. i am not allowed to know what they are up to, but what i say to my kids is i want you to make as much money as possible with half the money and the other half you to earn some stock. i think when they finally decide that they are going to do their life they can do it, but that is my advice to them now. i don't know what they own, that would not be right. by the end of tonight's show, you will know hat suits you and what doesn't no matter what your age or style. tonight i am helping you perform the necessary

strategies you need at all stages of your life from young to old, just like the gentleman we spoke to. i will meet you where you are and take you where you need to be stay with kramer. >> don't miss a second of mad money. follow jim cramer on twitter. have a question, tweet kramer. hashtag mad tweets. send jim an email at cnbc.com or give us a call at one 807 43 cnbc. had to mad money.cnbc. >> >> my five-year-old son loves to watch her show. >> our world is a better lace with you in it.

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>> tonight is all about you, about knowing what you can and cannot do because it is not right for you, because it is not suitable. there are all kinds of readability considerations. first and foremost, there is age suitability. >> there are kids who were born who are in their teams and their parents send to my best pitch. parents, grandparents, listen, families just had babies, i want you to open up accounts for them or at least give them some stock so the earliest moment you can start the process, you can save.

here is something that doesn't need a commercial, most every x- ray hear from is in love with index funds which are not perfect, but they are the best way to go if you want to put your money on a pilot who can't spend a lot of time on individual stocks. if you just had a kid, you can take a couple hundred and buy some shares. i am partial to the s&p 500. those stocks are present publicly traded companies. i like any sort of total return fund that has water stocks. i think that is a terrific way to start. the brokerage site might have some funds that are higher growth and that could be nice because you are buying or and and who has got their whole life ahead of them, their whole life. these things compounds over time. money can build up on itself. you might say why am i watching this show about stocks if all

he does is talk about index funds. i could come out here every night and talk index funds but it would not make for a good show. i would not be giving you my best advice. i teach you how to pick individual stocks in the investing club. i believe that is the most invested way to go. it is my favorite and you build a portfolio that can do most and you can control your own money. good stockpicking can coexist. i wish the index funds were not such fundamentalists about how bad everything else is. so i say let's give both a try. when you are saving for your kids, start with an index fund. what is a good stock, i think you should pick to kinds for your children one with a dividend where you can reinvest and get compounding, that is such a good ink to teach people. you often hear the term

aristocrats, companies have long histories of increasing dividends. love them. it is hard to go wrong with the consumer package. you are probably like pepsi. join the cbc investing and watch what we do. at the same time he went to give your kids something with more choose like the great stocks of an era, now if you do set up an account for your kids, may i suggest going with a uniform gift to minors account. okay. ugma. suffice it to say you can give children money that can accumulate somewhat tax-free over time. it changed so much when i set up show funds for my kids. i love them because they were like a trust you did not need

lawyers to create. check with your broker for the latest rules. they do differ. i think it is one of the better tax breaks i go hunting for tax breaks and that is how you take care of your family who doesn't want free money to mac there is one caveat, if your kid is planning to get financial aid in college you want to be careful because that money can count as theirs and might get them disqualified depending on the institution. the goal of a terrific insurance policy, i will talk more about this later, but totally blessed by me idea is to buy gold or silver coins for your kids or just pieces of gold or silver. i bought slivers from a dealer and pretty much forgot about them. they may or may not increase. the are polar opposites of stocks. they don't do anything, but in crazy times when inflation comes back and we know it is capable of happening, there is

nothing to hold off the value under the scenario better than the masterpiece of art and precious metals. one caveat, if you do this, put the gold or silver in a safe place. does not mean that it in a masters. put a hole in the ground in the backyard, a safety deposit box is more my style. when a child is born, think about setting up a gifted minors account and put individual stocks in their pacifically i like gps i've hundred and your kids will want at least one dividend stock for income, a high-yield stock can double the value by the time your baby turns 10. you want one high-quality gross stock that you believe in for the long haul because those come back. don't put this off. this must be done so you can be involved your brand-new loved

one. no one has ever regretted saving too early for their kids.

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and instantly adapts as you move, without ever disturbing your partner. deep sleep. guaranteed. sleep better. live purple. right now save up to $900 off mattress sets during purple's labor day sale. visit purple.com or a store near you. >> we are coming over knowing myself, how to not just buy the right stocks, but the stocks that are right for you. we discussed the importance of suitability and the ssence of what is suitable for newborns. what is suitable for the kids? what do you do for them? you should do everything to get your kids involved in investing in stocks. stocks represent pieces of companies that they might like. let's be honest, most parents think they could not explain the stock to a kid.

that is not how you grew up in my house. as much as i love sports and we had tickets to the world series, we didn't make it come about we have them. tammy, stocks were supreme. my father had gotten a tip, he played tennis, the guy told him to buy a company and share national video which would have made it as a facebook show, but in the 50s it was a bust across our family. papa would bring it home. he would not give me the sports section, he gave me the business section, he wanted me to learn about stocks. i looked up closing prices back then. i tried to see where stocks were headed based on how they were doing. it was momentum. i knew stocks by small agate types. i kept the letters to see how i would have done with texas

instruments or ltv i also got a lot of airline stocks. most kids are suckers. it was household advertising. most people under 50 have never heard of this. i like the stock making process. i got my fifth grade class involved. keep track of the closing prices for weeks and see who could make the most money. the problem is i was doing the opposite of what i should have in doing, although metaphorically. picking stocks about how fast they were quieting and backing away at their climb seemed overextended. instead i should have been picking the companies i knew and asking my dad permission to buy one or to shares with the

money to pay for it, which probably would have been a dealbreaker. let's go over what would have been right and wrong in the picture i painted. think of this as a highlight magazine you find at the dentist office. they would never have taken a tip about a national video from his brother, he would have taken a tip from his tennis parker who worked for the base. i have learned my dad had no idea what national video did. you can find out more about it via google then you could from chat back then. national video made that youtube sets. in the old days when he had a problem with your television it would blow. the technology left national video behind so it went bankrupt and closed its doors. if you go straight down since about five days, the average is down too many times to tell. we had many a silent meal thanks to that decline and that godforsaken stock of national

video i think we lost most of what we had as a family. there were better stocks in the 60s, most were not that good according to the average, but in retrospect what we needed was stocks because they were going up. it was more suited. at least i picked the hot ones. defense contractors were getting rich as lbj escalated the vietnam war. for me he gave us a lot of thought. in retrospect i learned the most about stocks through board games. they used to have fort gaines. those board games were called stocks and bonds. acquirement about mergers and acquisitions. stocks and bonds with a fantastic came about wealth and conservative stocks. if you get those, they are on ebay. you can see what i mean.

we have whole fantasy leagues of stocks. it holds up. let's come back and think about what i could have done differently. when you're a kid you play with toys. it would have been natural to buy shares. i am not asking kids to know what it means to own shares. i am simply saying there's a way to teach kids a company can be owned the public and you can own a share in the company. of course the irony should not be lost on my family. can you imagine if father had bought shares in a dividend stock for me rather than national video we had cheerios everyday of our lives. what a fantastic stock. we could have gone to disney world. it is not about how many people sign up for the streaming service. it should be enough to make you want to own shares.

on. let's not outthink this. i don't know about johnson & johnson, they were staples of the nation. i knew then as well as i know now that kleenex is something you used to wipe your nose. these are things we are not even thinking about. it is obvious, chipotle if you want something more organic. please buy your kids a few shares in a brand they know and you know, something they can see and hear and touch and put away. stocks will not always work out, but think about what you liked when you read little or what your parents liked when they were little. you will more than likely have a long-term winner. got a great hook to get your children into a lifetime of investing. let's go to madison and texas. >> if i can get a guaranteed interest rate of over 5% by

purchasing a six month treasury bond, why should i invest in the equity market given market conditions? >> six months from now those rights may be lower, you can continue to reinvest. the stock market has far exceeded a longer-term, anything you will get in the short term. i am not against percent. i own 5% myself, but you want to take the long-term view and you can buy a dividend yielding stock that is very good. it will have growth on treasuries. let's go to annie and rhode island. >> thank you for doing these segments. i appreciate it. >> that is what i intend to do for the rest of the run. what is going on? >> i enjoy the segment due on technical analysis and i have questions. one, what is the best resource if you want to study this and

how much should an amateur investor rely on fundamentals? >> great question. i think i really trade larry williams used to school larry williams. that is where i learned all of the great people have websites, but in the end, i think i have a good chapter in my last book, i spent a lot of time talking about that. it must be done. i happen to have it with me. this is what my dad sold for a living. can you imagine if he had bought company 3m instead of national video, we might have an able to get grape juice. put the water in the grape juice. we didn't have stocks and bonds. a company they can see and hear and touch. i learned with us game it is

available on ebay and i wish i had the rights, i would put it up again myself digitally. there is much more ahead, i am giving you my best investing habits for the rest of your life. i will answer all your burning questions with my colleague, jeff. stay with kramer.

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>> teenagers are incorrigible, the last thing they want to hear about is docs they have bigger fish to drive. so what? i am not going to tell them what help i can i am going to let them tell me. people have been huge beneficiaries of my wisdom. both on air and in the club, children, stepchildren can tell you a great deal. that is why i got behind dominoes so passionately a decade. i met with patrick doyle the day he became ceo and stocks

were 10 bucks. it taste like car door before he read related. i told you i thought it was a good spec so i recommended it, but that is not what made this stock a jewel. it was the technology. my kids like your kids hate talking on the phone, they think it is for losers, but they left at. when my discovered the domino up, they were sold. no talking to people who might get their order wrong, no worries about where the pizza was, that is something the great joints could not do. and the options for the vegan, are you sure you want no cheese, i think that is good for my kids. it was a joy being able to pay online. of course dominoes is the tip of the iceberg. the delivery apps went on to take over the world, all of the technology was lost. i never minded the phone, i was

patient about the pizza and never cared about the delivery person. i was not like that target audience so i started going to the tech company. maybe you know the story of how i got religion on at. 20 years ago my youngest daughter asked for a second ipod, not because she lost it, as i accused her of doing, but because she wanted one in another color or her. they were fashion accessories. she did not want it to clash with her outfit. personal computers, come on. my kids for a long time would rather be caught dead then use a windows machine. they only wanted max. the iphone was more controversial, they didn't like change, they didn't want the earbuds. so what they really don't want the same. it had service charges that make it so you have to pay at

the store. what else? google it, yeah, that is how i found out about google. when i got the word from the kids that they were not allowed to google something if they were involved in school, count me in. we have access. the job took up anything they wanted. they had to find out things you would know where to look. my kids get their news from their iphones and they get there entertainment from netflix. it was not their creation, i figured out amazon, but a speck, when you're a freshman you have got a phase book with everybody's picture. facebook is a devastation of facebook. my youngest got sick of facebook probably because i got on it but then she went to instagram which facebook kept separate so you didn't know it was part of something that

older people had discovered. i didn't think the ads work until we were inundated with red hot chili pepper merchandise or something that was not an ad, just a link. does everybody else scream when their ad is a link? only mark zuckerberg cares about users. the ads actually make sense, you do want to click on them. how about chipotle the kids love chipotle salads. my youngest returned early. the only difference being you did not the app that she did not want to be seen inside. i recommended stock in the low hundreds on the way back to the to thousands because they liked it so much. eventually your kids will age out of the key demographic but if you pay attention to their likes and dislikes can get yourself decades worth of good stock but once they reach a certain age you need to pray

for grandchildren if you want precious ideas. your kid likes a device that takes pictures and measures steps. i don't know. remember they have their whole lives ahead of them to make that money back. that is the beauty of investing, you can lose it and no one will notice. for the same thing later in life and there are consequences. you will hear from me. now you can learn from your teenage children, trust me, invest with them and you will not regret it.

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>> i love you, i have been watching from day one. >> i am learning so much watching your show. i watch your program today. >> thank you for being the greatest. we consider you the moneymaker and we thank you for all you do. >> i love your show. >> we think it is the most entertaining program on tv. >> on that i have been talking about suitability. what is a suitable investment, especially our age or if you are picking stocks for your

kids? as you get older you have less possibility. fewer investments are suitable. when you're in college i don't expect you to put any money away at all. college will cost too much. i used to be trying to get back in that game and i tried to get people buy a share of stock, but college zaps the daylights out of you. you can't even contemplate savings. once you are in the real world it is imperative you save. get a self-directed i.r.a.. you can pick stocks, not just options chosen by your your, you cannot return down. this is where you have to begin the mix of index funds and individual stocks. i prefer both. there is too much risk in individual stocks. so you put your first 10 grant of savings from your first job

into an index fund. i have mentioned before i know that some would argue this, i see them argue on social media, i don't care. i know the truth. get your nest egg as early as your 20s. a nice flow of cash can do that. the rest of your money that first 10,000, i do like stocks and i do want you to be those diversified. that is why we play when we can. i explained what diversification is. we created the cbc investing club to show you how to invest. the trust has a lot of restrictions. it is one of my favorites, the wire. if you want in-depth work on stocks i have mentioned the investing club is the way to go. i always talk about buying. you need to buy a stock but then you have to keep up with it. buy and hold does not work.

back to earlier i discussed how hard it was to do homework. those trips to the library to study, it is so easy i have had to scrub. you no longer need to spend an hour a week studying your stocks. you will get sick of the process quickly. you can have research pushed to you. or you can read what we write in the investing club. let us help you do the homework. whatever makes you most comfortable is what i favor. i want you to be a good manager of your money for a good client, i do not have a preference. let's talk about picking stocks as you get older. you need to know about yourself in terms of risk. until you get to your late 20s, i want you to take risk. maybe more than you think you can handle. you have got your whole life to

make that money back if something goes wrong. when you get your late 20s or even if you can about what you do, does it make you wish you had no exposure? it is not a surly question given how they come up. these are crucial questions only you can answer about yourself. i would like you to take more risk and on more individual stocks. put away that first 10,000 in an index. i would hate to see you commit to more than 20% of your money to mad money and growth stocks. as you get older you capture more income by owning stocks that pay dividends. get a high dividend with an offer but don't be too quick. i wouldn't advise you to start investing until your 30s and even then you should do it gradually. only in your 40s can you have a

portfolio. get a fixed income by your 30s. the problem is twofold. any people are running their fortunes. there are not always a lot of fixed income alternatives that don't have a lot of risk. i would rather own a high- yielding dividend stock that can raise pay rather than a treasury bond that raises 4%. as you get older i recognize most bonds do have that on caveat of a provision, you can get your money back. as you enter your 60s, you can put up 50% of your money into bonds and take bonds up to 10% more each decade. the rings us back to suitability. if you think the stock market is not legitimate, it is prone to values and threats. you have to decide to take sparks of the minimum level. i can't blame you if that is the case because it has been an

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>> my favorite of the show is you. i am bringing in my portfolio analyst to help me answer some of your most burning questions. for those of you who are part

of the investing club, jeff needs no introduction. i hope i want you to join. help me do a great job for all that money viewers and for members of the club. this is what we really do. if you like this, be sure to o to a restaurant and do it. my kids showed me how to do it. first up we have tony and north carolina who asked what is the difference of pain being stubborn and taking a loss? here is a fundamental question. in the end taking a loss, you take a loss if you find the fundamentals are deteriorating. if you don't take a loss because he can't take it anymore. i think this notion of a losing position, if it is a position where things have changed, you

should have taken it, we have made mistakes at times. there are changes in the company, but we don't want have you a company as a loser or a winner. some of our greatest pics have been losers. you have to identify the issue at hand. is it a structural issue at the industry level, then you are being stubborn if you hold onto it for too long. if it is a great buying opportunity and you stick with it and you pick yourself up, we have have this. let's take a look at some of our matt mentions. let's go to isaac who says jimbo, which is whatever because me at home, my whole family loved your show, i don't think i have bought or sold anything in the past 30 years without checking to see if you said anything about the stock. this is what i love, see isaac uses us as a resource, one of many resources.

i have never claimed to be this here and either way, you are a great entertainer, well, i like to bring people in. i like to think i am not just a great entertainer, but what i would point out is i want you to chat. you should check, maybe we said something in part, that is what we are. we are input. i read the input to make no, but we are an important and put in making stock decisions. >> doing homework and showing you how to do the homework, right. it is a guiding hand. >> i always say i just did that. there are people who want to own stocks. watch the show and be members of the club. next up taking a question from rachel in florida who says we have a 30 year time rise. we have money we don't need to live on. can we invest into stocks and

bonds like this is important. 30 year plus timeline stocks yes. bonds, no. you don't need bonds until you get very old. i am definitely at odds with most. i say that when you buy a lot of bonds you are betting against your life. if you think you are going to pass away when you are 70 to then at 65 yes, by bonds. i want people to think young. the reason why i say it is because if you have to go into a long-term care facility and you own bonds for the previous 20 years, you're not going to have enough money. >> 30 years long-term, you don't need to live off that money, that means you have a risk of selling it in a potential market downturn.

over time you should do quite well. >> i think it is a trick question. people don't like to talk about mortality but what does matter is if you have a long life and you have question on bonds in your 50s and 60s you will be broke. he will be broke. you can write things up with stocks. next you're going to larry also in florida who asked can you touch on the suitability in general of long-term treasuries for a retired investor. offer an appreciation, thank you. long-term treasuries are offering a very bad return. they are well under short-term treasuries called an inverted yield. i would prefer to see you in the utilities and i say that because i think you end up losing money. you lose money

see you next time. >> tonight robert f kennedy and like you've ever seen before. >> the democratic challenger to president biden laying out an economic vision for the nation and more. a hurricane wreaking havoc across north florida and parts of georgia. we have a break on the economic toll. tesla feeling the