Things You'll Need:
- You need to watch Mad Money on CNBC.
- Stock-trading account.
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Step 1
In the beginning Jim talks about the stocks that he's researched the most. These are the ones that you will gain the most knowledge on. This part of the show contains the real morsels of information.
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Step 2
I would recommend keeping a notepad handy so that you can write down things that you would like to research later. You know that you should never forget the research, right?
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Step 3
Also note that these stocks are going to become hot commodities (no pun intended). You really shouldn't buy them within about a week of hearing about them on TV. This gives the artifical boost that they get (the Cramer Effect) time to even back out of the stock price.
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Step 4
Be careful about the stocks mentioned during the "Lightning Round". He doesn't give a lot of thought to these.
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Step 5
There are plenty of good tips that you can glean from the "Am I Diversified" section. Jim's whole game is based around being diversified. His brand of diversification also includes speculation. He says that you are not diversified unless you have some money in speculative investments.
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Step 6
You need to read his book Real Money before you begin using the advice from the show. This book is basically the user manual for his show. You use its knowledge to gauge whether his recommendations are right for you.
