huge move, more to come. >> the gilchrist brothers, they lived in yonkers new york, the three of them were actual brothers. you're a star. i'm looking forward to thursday. devin energy is my final trade. my mission is simple. to make you money. i am here to level the playing feel for all investors. there is is always a bull market somewhere. i promise to help you find it. "mad money" starts now. hey, i'm cramer, welcome to "mad money." i am just trying to make you money. my job is not just to entertain but to teach you. call me or tweet me. tonight i am letting you in on something big. the method to my madness!

>> i believe you can do everything that i can do at home if you are willing to put in the time and effort. investing in individual stocks, running your own portfolio rather than dumping it in a buy index it is something i am confident that all of you can do by yourselves. i hope you do the homework. join my investing club. these days the research is is available online i am saying it less than an hour a week. a few hours if you own 10 stocks unless you belong to the club itself then you can cut down the homework because we do it with you. investing more than 10 stocks then i get worried that can be difficult unless you are managing money full time. i like the ones you invest.

i am in some. regular people can do the average. as long as you are disciplined, follow the rules, rules we constantly highlight as part of the cnbc investing club. how do you start? that is what we are talking about tonight. the show is all about the method or methods to break from quoting the bar to my madness. how do i pick stocks? what gets on the show? how do i tell you some are worth buying and some aren't. those are the questions that people ask me. tonight you will get a piece of the answers. the truth is i have far too many methods and ways of picking out great stocks to cover them in one show. but i want to give you some of the tools of my trade. enough to start to pick stocks like me on your own. remember, i want you to be a manager, a great manager of your own money. you can focus on a smaller number of names while i have to do everything, think of the lightning round. the end of the day the show is about educating you and how the market works and help you make money. i am not here just to dole out

stock picks like the fish you give a man if you are too lazy to teach them to slop for fish at whole foods. i want to empower you. it starts with teaching you the tricks i use to pick stocks and methods that served me well for four decades and allowed me to generate 4% annual return at my old hedge fund. not bad. this is what guide me now. a learning exercise you can do. now, let's get rolling, the easiest ways to identify cramer names, the stocks that can possibly, i should possibly own but not end up on the show it is by watching a list that comes out every day. it is the new high list. stocks in that list, the highest of the high, obviously something going for them and that is especially true when the market is in bad shape. only the best of the best can hit new highs when the average is falling apart. what does it will you when a

stock is on the new high list. part of a bull market or the company itself has serious earnings or sales momentum. no matter how they get there many stocks in the new high list keep going higher because it is kind of a list of a students worth betting on. they tend to keep getting straight a's just like the great kids in school. in a great bull market you will see it over and over and over again. hitting new high after new high. following them is a great way to do it. even as the bears claim the bull market was false and could not be trusted. listening to the bears is missing out on the greatest rallies in history. of course, i am not saying you can not just chase any stock going high. that will be foolishness. i am saying that if you want to identify potential winners unless there is a stunning sea change in the market caused by changing interest rates, possibly the political environment, then, eye good place to start, a -- then a good place to start is the new

high list. that is a start. that is the thing about the market. not always that hard to play once you understand there is often more chance. things keep going the way they are going until something major shifts and then alter the course. those changes they can be radical, though. that is why you always have to be reevaluating your ideas and never dig in your heels when the facts change. something i say over and over again. now, i rarely recommend buying stocks trading off of the new high list. unless special circumstances. what i like to do when i am hunting for stocks and what you should do is wait to pull back from the high list. that is the best place to start. buy, buy, buy. >> doing your buying. the new high list is not a shop list inspiration list. keep an eye on those names and wait for them to come down so that you can pull the trigger. [sound of gunfire] what i do is 5-8%, good point

that likely positive going for it, pulled down by a move on the stock market. that is the optimal level. 8%, more likely something is going wrong, very wrong, maybe with the underlying company. pouring over the new high list is a way to have potential. i stress that. potential stocks to buy. you only buy stocks that pull back from the new high list if you are confident they make a come back for reasons unrelated to the brooder market. you need to have conviction, even if it is a cynical conviction with the stocks going higher. it deserves to go higher. the biggest when you are stocking for stocks. make sure they have them pulled back for a good reason. the seller needs to have the business. don't go buying a home builder that is down because of rates are up. that can hurt it. a big farmer stock it is nothing to do with their earnings maybe it is worth buying. we are dealing with a damaged

stock and not a troubled company to go down, down, down, how can you tell the difference between damaged company and stocks? the fundamentals has not changed it pulled back for mechanical, taking a hit in the market in general. now, more than every they are traded by hedge funds, causing sell offs that make no sense. you will see high quality stocks pull back for unrelated reasons for the core business. if the changes whatever made the stock attractive as it climbed its way up to the new high list goes away that stock is no longer a candidate for the portfolio. the story has to be intact. here is the bottom line. that is the first method to cramer's madness. watch for stocks that pulled back from a preselected list. the new high list. especially a brood market sell off is sometimes a great opportunity. some of my best picks for the club come out of the proses and hopefully yours can, too. let's take calls.

let's go to andrew in georgia. andrew? >> hey, mr. cramer, how are you doing today? >> good day, how about you? >> doing, well, thank you for asking. i am fairly new investor. only investing for about three years, i just want to say i appreciate everything that you do for the new guys who don't know what they are doing. >> thank you. thank you, andrew. that is terrific. how can i help you? my question is about earnings i want to know after earning announcements how long do you typically wait -- smoke clears and when it -- like with percentage what do you look for with the stock, up, down and potential flag? >> okay. so, you know, i find that after an ipo you have to be careful. what you got are a lot of analysts who couldn't of want to say positive things and they

tend to lose their critical faculties. my advice is very clear. when you get a stock that is down substantially from where it opened that is how you look at it. a lot of the times the opening is controlled by people too enthusiastic. a company with earnings and a good balance sheet that trades at a primium with the stock market that might be okay. otherwise no thank you, i will find better stocks. how about west virginia? >> good evening. >> good evening. >> thank you, first of all for everything that you do. you are a national treasure. i learned so much from listening to your show. >> you are very nice. thank you. >> when you want to generate cash how do you decide what stocks to sell? >> are we talking about this a lot on the club. i rate my stocks 1-4, following the fundamentals, always willing to sell a 4 or even a 3 on any list. i try to look at is, i look at it like paintings, like a

collection, i don't want to buy a new painting without having an old painting i don't want a museum. i look for companies that reported a bad quarter, disappointing to me but a little bit of lift that i can lighten up from. i don't want to sell a company with good quarter, disappoint or always there and you have to have the discipline to. >> sell, sell, sell. >> as hard as it might be. timothy in new york. timothy. >> hi, mr. cramer, thank you for taking my question. i want your opinion on quants. they screen dozens of parameters on thousands of stocks and use algorithm to rank them for evaluation, growth, momentum, profitability and so on, they are graded by buy, hold or sell. it seems to me at the bear

minimum they are a valuable tool, on the other end, why wouldn't an investor use them exclusively? >> that is a great question. look, i happen to, i think quans go up and down and trade too much. the numbers say no, i like to buy great companies with great management with good tail winds. the quants don't always catch them. everything that is from research, i like to include it all. if quants have great records and share with us data they are using. i am a buyer, too. okay, now you know the first method to cramer's madness. watch for stocks pulled back from the preselected list called the new high list. best because of brood market sell off. not because something happened at the company itself. tonight, i am giving you an in- depth look at more methods to

my madness. watching and keeping. if you want a better well- rounded sense of having your own stock portfolio you don't want to miss the rest of the show. so, stick with cramer ehh... hmm. oh, that's very, uh... - right? - mmm... this store doesn't have agentforce, so an ai agent didn't tip off the stylist as to what i might actually wear. - yes. - oh. that's a commitment. [glass knocked] hey bud! whaddaya think? you know, people can see you out here. ha ha ha ha, yeah, yeah, right, right, ha ha.

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tricks for buying and selling stocks. i am too humble. now, think of me as the teller of the stock market. i want to pull back the curtain to show how professional stocks to buy and knows what to sell. now, earlier on i pulled off stocks that pulled back from the new high risk. you get a cheaper entry point, something nahas been approved. you rarely want to buy names right off of the list. you are paying too much for them. a better chance, a better deal

if you are patient and waiting for weakness. you are going to follow the market even when things are going well. have some patients. the stocks are so hot you have to buy it wherever you can. as soon as you can. it is not hitting lower any time soon. i felt that, you felt that. you have to not buy them all at once. 100 shares of a stock with so much mojo, how about this, buy 25 shares, worst that happens it goes higher still and you can not buy more so you grab a quick profit and buy the next one. always another one coming down the pike. one exception. it is okay to buy stock hitting a new high. if you see insider's buying a stock when it is already up a great deal. that is a total green light. do not laugh, it does happen, it is rare, but it happens, my experience, it is rarer still if this does not work out. i love it when they are doing a

run. terrific side that the insiders have it. the round might just beginning or a big runway and a sure thing it will be long-lasting, fyi, they can not flip a stock, they have to wait six months or the government takes away the gains, that is the law. these people are seeing positive things that likely are not going to disappear in six months time. boy do i like that. normally insider buyer is meaningless to small. on its own reason to buy stock. sometimes you catch them buying the stock because they want to give the impression of confidence, create an illusion. insiders are not stupid f. they are seen buying their own stock, even small amounts the market will smile upon them. occasionally they game the system. that is fair. it means we ignore most insider buying hat is not substantial because it could be flim flam, that is not a word. now, if you get insider buyer, you might want to take another look at the stock in question. when they start to buy a lot of

shares, what a powerful endorsement. the buyer of the insider buying that really does declare sin sharity. the sincere. those sometimes can be down there for a reason. there is nothing more arrogant and telling than when an insider backs up the stock when it was rolling along at a good clip. what they are saying yeah, we know we rock, our stock is high, we are confident that we will buy shares right now hand over fist. arrogant? sure. it is rare but it is bankable. corporate insiders are not fools when notable exceptions. plus stocks are on a tear there is a good chance that the executives know what they are doing. of course, not everyone deserves the benefit of the doubt in this business. after so many investors got burned by the 2021 boom and

ipos. i know a lot of people see most ceo's as a bunch of liars, frauds, crocks, mouth bank that is the wrong thing. healthy skepticism is one thing, unwillingness to see something positive is different entirely. you have to have some measure of trust to the companies you own shares in. why bother, go buy the index fund. what else is going on? even when the fcc and justice department are host i'm to mergers you still get takeovers, sometimes executives will buy their own stock because they hear footsteps of a potential buyer. maybe they have been contacted to the companies and turned them down. they happen all of the time. if executives suspect they may be nexted it is healthy reason to buy. or maybe they realize that the business is not worth more than they thought and broken up to bring out value. all different generations have

seen that. we have seen tons of the break ups over the years. they have long-term gains because wall street likes smaller straightforward cutches, easier to get your head around. think about it, think about it. carrier, otis. the old technologies, they see the value. they tonight on themselves. maybe the stocks run just a bit. they don't think the run is over because they recognize how much better the business will be once it is broken up. for me buying after a big rally can feel reckless and lazy. most are smart enough to wait for the bull back before they pull the trigger. one of the people who knows the business best does not believe there will be a pull back and nothing more bullish than that. you want to wait until the stock sells off after the insiders bought. that is the best of all worlds. i seen it happen. cooling off for a moment that is a terrific sign of buying, bottom lineup, one more method

to the madness, you see insider buying, they had a solid run, a rarity you might want to do some buying, too. mad money is back after the break . coming up, need another tool in your belt to help identify the right time to buy stock? cramer is revealing how short interest in a name can be a sign to buy it what is cirkul? cirkul is what you hope for when life tosses lemons your way. cirkul is your

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. you are in luck. i apologize to no way endorse a scotch of choice. have you tried 18-year-old jamison. sweet. don't waste that time on that either. i am in a great mood, manic mood, that is me at my best. let's say i am productive under pressure when i am in high gear. i am revved up i am revealing my secrets. i am giving you some of the best ways that i know to pick stocks. teaching you to invest and trade like cramer, not to be like me, i have emotional issues that frankly you probably prefer not to emulate. somewhat off track. so far i have given away two of my secrets, two of my tools

that i use for hedge fund. follow by joining the cnbc investing club. i play with a open hand not a poker face. you can see all of my trades before they happen. what i am teaching you tonight are what i call tells. there are things that are worth knowing, to go through the boring process of reading through the transcripts and quarterly filings to do your homework. there are thousands of stocks out there. any method to use to narrow down the ones that are attractive to us is one worth having. i talked about insider buyer -- buying. there is one other scenario that inside buyer makes a tele. that is when they have a heavy short position, many borrow shares, sold the shares and now waiting for the shares to go lower behavior they buy back the stock. return them to the bank they

borrowed them from and collect the difference between the price they sold them at first and the price they bought the stock back later. shorting it is like regular investing in reverse. buy low and spot them. turn it around, they try to sell high and buy low. when the stock pay lower, in fact, it takes more conviction to short stock than it is to go long. when you are short the downside is infin ate. when you are long it stops when it hits 0. shorts lose it when they go higher. the other thing about short sells, if there is a lot of them, the stock gets great nows, we get what is called a short squeeze. then, it sounds exactly like what it is. closing out the positions they have to time in ae a lot of pe

desperate to buy the stock to cut down their losses. a lot of demand. they have to buy unless they want the performance to be wiped out t. is predictable. concerted buyers will have a short squeeze. hey, listen, that is what game stock was all about. that is what amc was about. that is what the meme stocks were all about. let's say you have a stock with high shortage rate and people for the company start buying them themselves or outsider takes more than 10% stake and indicates they want more. it is like drawing a line in the sand. our stock goes this low and no lower. this is an explosive combination, people. one that leads to a short squeeze that sends the stocks higher. shorts are smart. they are smarter than long investors but don't know more about the business than the insider that run it. if people are shorting it and people start buying it in

sizeable amounts you start doing your homework, right then, right then. you could ride it higher and higher, jackie wilson style. they cover their positions, cut their losses and run. similar with a company with heavily shorted stock begun the buy back. bigger than a previous one. that is another loin in the sand situation. management is contradicting the shorts. companies often rebuy their own shares. some of them are a waste of money.

. >> they gutted the rules [dropped audio ]. >> without these protections you can not smash the stocks down. it could assess the stocks, they smash them down. any time something goes wrong. we see it in the financial crisis. it was a horrible period and we saw a smaller version of that in 2023. so, the shorts were like shooting fish in a barrel. so many reasons banks traded like they were going bankrupt. other than a few they were fine. of course, recent years the shorts found themselves targeted by bull raids, facilitated by social media platforms, they have to be careful. only when the meme stock crowd goes after them. you never know what it will surface. these are highly unusual situations. you can find great opportunities in the stocks where they overreached and insiders are buying. before going in one of those i

have to warn you, the balance of power favors the short sellers. that means if the short sellers are wrong they can still demolish the stock. especially highly visible campaign. many times the shorts are right and the stock deserves to be slaughtered. just do not under estimate the damage shorts can do. bear rates are stocks that pay good diffidents. if you short it you have to pay the dividends. so, you see a stock with big dividends and the yield is going higher that is a terrific place to be. to me the bottom line is, insider buyer, heavy short can reach raging bull buy. let's go to debi in colorado. >> hey, jim, my husband and i are proud members of the club.

we absolutely love being members, so much fun. >> thank you. i will pass it on to my colleague. thereat is fantastic. >> my question for you, today, i have a 31-year-old son and he finally is starting to listen to me so i was wondering if you had tips and tricks for us to get him involved in the market. he has a good sum of money to spend and excited about getting involved. >> that is fantastic. i would look at bio tech with amazing, situations, by the way i like dan heir it serves the bio tech companies, i like vrtxt that is a terrific company. let's not forget you do want diversity. take a look at some of the stocks that you and i both know, honeywell still incredibly cheap that we have. and maybe you have a stock that is a bit of a flyer like a

footlocker. so, build diverse but emphasize the science and i think you will be in good shape. vincent in new york. vvincent. >> what advise would you give a 26-year-old day trading for two years and is looking to do better and go farther with this. >> day trading it is a full time occupation. you want to do is put money in the return fund and put money in the vanguard s&p500 fund and keep putting money away every single month. if you have good day trades and made a lot of money, take off some of that capital and put it in them. that is the way i would suggest to do it. i want you to have exposure in the brooder market. most of the cases insider buyer equals buy, as long as you can avoid short that are determined to crush the stock that you own. much more mad money. still have tools in my belt

that i want to share with you. including trading around a corporate position, stick a around. (♪♪) the booking app i used didn't have agentforce. so an ai agent didn't know to move my reservations inside... ...or know what i like to eat, which is not that. what's up, my brother? oh, hey, bud! we really needed this rain. right? [car splashing rain water] agentforce helps restaurants prevent dining disasters. paddle on over! it's what ai was meant to be. we got you, brother.

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. regular viewers knowfor the not short term trading t. is better to be a good investor than trader. doing it part ime. knowing how to trade makes you a better investor. trading around is the best way to do it especially investments hit by wild swings, that is most markets in recent years. what does it mean to trade around the core position? let's go through it. step by step. pick a stock, one you like, one

where you have bias. a stock you believe is headed higher. what you are searching here for is a great company with shares that might get tossed around by market volatility. even if you believe they will only go higher if you are patient. if you are just investing, buy them quick, buying all at once is arrogance and that be it. this process of buying in incruments something we talk about in our investing lub. now, let's talk about nvidia. i love it for the longhaul but it is volatile. say you want to the own 100 shares over time. the way to do it, buy 25 shares four times over a period of weeks or even months. that is your core position as an investor. say you want to trade.

something that is hard to do. cheaper than it has been. home gamers can fit in, and go out and snow stock commissions. i would not say just that. let's go back, you own 100 shares. of nvidia. say it is sitting at $500. it is $500. every time it jumps 5% you could sell 25 shares. a core of your position, you save a little to bring in profits. once nvidia is at that, scale it out the way on the way out but do not sell the final 25 that is your core position, and as long as nothing has changed you use that weakness to stock up more on nvidia. it will happen often. since we are in a world where stocks can get crushed by a lot of factor that is what happens.

as the stock comes down, your original stock bases you buy it back in pieces. started with 100 shares let's keep using 25 to buy it back. decline go beyond the 100. it might be small potatoes but over time your profits will add up. that is what trading around a core position is about. a lot of people think trading is exciting. can be. if you are good on trading on a core position you should be pretty bored. all you are doing is watch it move and trimming or adding position accordingly. trading it is something that is reckless and irresponsible. it is the height of the adjustment. it is good in the business. exciting? save it for the stadium. you can scale the numbers depending how big your position is, the base idea before you put yourself in a spot too much

on the table in case it gets swatted down or too little to take advantage of anything that comes your way. trading around it, it is important basic strategy that everyone can use. even those that find a notion of trading boring. less trading and more of a supplement to investing. here is the bottom line. now you know the basics of how to trade around the core position, another method to my madness, one that allows you to generate lots of small gains that i am telling you will add up over time. "mad money" is back after the break. coming up, cramer's revealed his tools to the trade of buying a stock. what about selling them? cramer's breaking down how to get out of a stock at the right time. when "mad money" returns (grunting)

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. i got one more trick to teach you tonight. one more method to my madness. this time i want to talk to you about selling. how do you know when to sell off stock? you ask me about that all of the time? how do you get out so you are not the last person around stuck cleaning up the mess. this is the question that needs to be answer. there is lot of money to be made with hot stocks with a lot of momentum. you need to know when there is time to leave the table. there are always nah sayers, sooner than later all of them are wrong. the collapse usually occurs later rather than sooner. all the negative talking heads

that kept you out of the momentum stocks, actually cost you a great opportunity to make money. people shy away because they don't know where they are going to stop. they don't know if they are going to top out. understandable. i would be afraid to buy them, too. if i did not have the discipline that let plea know when to get out. lucky for you i do have one and you are about to learn it. first one i am talking about hot stocks i mean about specktive stocks, stocks of companies that are up with low capital. usually they begin with little research coverage from wall street. they do not have earn beings, may not have sales. these can go up for a long time. they can catch fire and stay on fire for years when they have the wind at their back. you can not figure out when interest peaked and when it is time to sell. it is not from the stock t. is by watching the analyst coverage. you have to use your own judgment here. the good rule of thumb is once the hot stocks have half a

dozen analysts covering it, the run is going to peter out. the goods. the stock in question is too well known. the rare speculative winner. you can find out how many guys are on a stock by looking at it up online. it works because the number of analysts on a stock is good gauge how much awareness there is in the name. hot stocks get tapped out when there is nobody left to be attracted to them to buy more. when all of the people interested in buying have bought. they come out of nowhere tracking more and more attention and investors and everyone who wants a piece of this stock has a piece of it already. that happens, the run is over. time to go home. and if the meme guys get ahold of it, they can only push a stock up so much before they

run out of firepower. of course, there are other situations where stocks go out. in 2021 we had a huge run in anything related to electric fields, carmakers, charging stations, same for enterprise and software. a lot of it is fueled by easy money environment, near 0 interest rates, a lot of it kicking around back then and had to go somewhere. so many money-losing company his red hot stocks. then the federal reserve declared war on it. near 0o interest rates coming to an end. we knew it was going to drain out of the market that is what occurs. we are in a new environment. you want to own real companies that make things or do stuff at a profit. these held on. putting aside the interest

rates issue when the feds are not tightening and it is safe to speculate. you need to watch how many analysts are following these little stocks to know when the run is going to end. bottom line. once the red hot stock gets too much attention it needs to rally on the last legs. there are only so many people who are willing to buy these things and eventually the bulls, they run out of firepower. stick with cramer . good evening mr. cramer, thank you, thank you for everything that you do. >> you have been such a wonderful source of information. >> thank you for all of your advice and saving us from ourselves. >> your advice let me quit a job that i hated. i love you to death >> thank you for everything that you do. thank you for keeping us from losing money it all started with a small business idea. it's a pillow with a speaker in it! that's right craig. pulling in the perfect team to get the job done. i'm just here for the internets.

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. some of the smartest viewers in television and i love taking your questions and hearing your pitches. joining me today just to do this. jeff marks, portfolio director. we are answering some of your questions and mad mentions. jeff does a great job helping out the trust, tossing out ideas and members of the trust. if you are not a member, already, what are i waiting for? let's start right now with tim in alabama. i think it is a good question. how do you decide to take profit rather than keep a stock longer to receive capital gains tax treatment. these are hard issues, i think you have to worry about that kind of thing with your accounting professional. what i care about is if the stocks are go up or down. i believe that if stocks go down you should take it off of the table that is what matters to me. >> of course, you want to see

qualified advise. but for the trust that you can follow along with at home, we don't play the tax game too much because everything gets donated to gains. that is donated to charity at the end of the year. >> yeah. i think it is -- i always felt from real money, my first book about investing never fear the tax man. fear the losses. next up, taking a question from russell. i always try to follow your advice to buy stocks in portions instead of all at once. they often do not pull back enough to buy more. i end up with a lot of small stocks making it hard to manage. this is another one. this is a discipline i came up with that says that it is a way to figure out if you missed the move or not. if you come in and the stock keeps going up, there is no doubt about it that you are late, there is just nothing you can do if you don't get it all in. i accepted that consequence.

if i am late it is a small problem. >> if you are able to continue to do your homework you can hold them if the prospects are quite good. but, yeah, it is a challenge because you don't want to spread yourself too thin with a different number of stocks but, look, if they are going higher, you know, . >> it is a quality issue that we deal with sometimes >> discipline. no matter what happens if you buy it all at once and it goes down a good chance it will happen and we are trying to avoid that. that is the real worry. now, a question from randy in ohio who asks, i know when bonds sell off the rate goes up. if they sell off why would it impact stocks? there are many different ways to answer it. one, interest rates go up for something that is risk free, a bond, then that has greater appeal than a dividend that may be equal. dividend, you know what? that is only part of the equation. if the stock goes down big you wipe out whatever gain you get

from the dividend. long-term considerations as you know. >> yep. >> just about the value of the bond versus stock further out. >> it is competition for dollars, like you brought up, what you mentioned but interest rates are used to in a discounted cash flow model where investors look at the carbflow out, estimate them, discount them back. when the interest rate is higher they get discounted at a higher rate that lowers the value that lowers the value of the stocks. there rates might hurt their business as well. shocks are not as competitive than bonds if rates go up. that is the way you have to look at it. even if you don't understand discounted cash flows you have to take it for granted that is what occurs. next, lynne in virginia

wants to know, if i have five shares and you recommend taking it out. close it out or let it ride? these are just questions that are so hard. 5 shares reminds me of the tail end of when we have some wind. like the tail in. if the statistic goes down, it goes up. i would get rid of it. i would. find something better. there is always something better. >> it is a absolutely fair debate. outlooks are bright. you don't want to fall into that trap from the earlier question that we just had about managing too many positions. there is always cross disciplines happening. >> and that is one of the things that people need to understand there is no right and wrong there are two rights that compete against each other. a question from kyle who asks, do you have a similar approach

to investing in index funds as stocks? would you dollar cost average. this is funny, this is where i got two disciplines. what i like to do if i am putting money in every month, if there is a month that is down more than 10% i double and put it in. say august is down 10% i take july's contribution, keep that, august's contribution and then i take sept's contribution and september's contribution in. and put it all together. 2/12th. >> stocks should be more attractive when it comes in. you would not run from a sale at a department store. what i would say index funds it is more about time in the market than necessarily trying to time it over sold, over bought. >> yes. absolutely. >> and that is a really important issue.

we do not by my method try to imply we are timing the market just trying to put more money in it at that one level. >> right. >> do the rest. >> when prices come down. >> yes. that is the way. >> well, what can i say. always bull market somewhere. i am jim cramer and we will see you next time g 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." ♪♪ i'm an active-duty officer in the united states army. currently, i'm a captain with the army corps of engineers. in 2007, we were deployed to iraq. i did 15 months overseas. it was a very rewarding experience being at the tip of the spear, actually accomplishing missions. and i really believe that we made a difference.