The Mad Money Approach.--- A big Boyah

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A big booyah !!!!!!!! One of the blogger here at StockPM, has developed a strong liking to the Mad Money show on CNBC, so we have an article about Mad money. "Mad Money" is an American finance television program hosted by Jim Cramer that began airing on CNBC on 2005-03-14. Its main focus is investment and speculation, particularly in publicly-traded securities. Cramer defines "mad money" as the money one "can use to invest in stocks ... not retirement money, a savings account, bonds, or the most conservative of dividend-paying stocks. Jim Cramer is a former hedge fund manager who has mad millions in the Stock market. For those who have yet to see the show: Cramer usually starts off his shows by saying this, or an alternative version of this phrase after the opening credits. "Hey, I'm Cramer, welcome to Mad Money, welcome to Cramerica, other people want to make friends [at this point, Cramer adds an extra, original statement], I just want to make you money, because my job is not just to entertain you, but to educate you, so call me at 1-800-743-CNBC." Cramer show has many segments and also involves many props. The most recommended sections here at StockPM is "The lighting round" and the sections when Kramer introduces a new Hall of Shamer.

We suggest watching "the lighting round”, because in that section any listener call in that show and asks Cramer advices about any stock. Then Cramer spends less than one minute and gives a rating of Buy, Sell or Hold. Not only does he give a rating but he gives few simple reasons for the same. We advice speculators and day trader to learn from Cramer what to look for in stock, when one is looking for stock movements in short term outlook.

The hall of Shame Hall Of Shame sections is also very interesting. Here Kramer does not hesitate to bash any CEO of a big company which is performing badly. For example: his latest addition was the CEO of UBS(Marcel Ospel, CEO ). Not only does he put their pictures on the wall, but he also throws rotten eggs and tomatoes at their pictures. Some viewers have expressed their dislike of such acts, but I really enjoy his act. For those users who get offended by such acts, I would suggest them to just ignore his acts and just listen to his comments about the company.

We do not recommend the viewer to blindly follow what cramer advices on the show, but rather suggest listening to the show to learn from an expert: how to analyze the market movements, stock movement, long term and short term strategy.

Going forward, we will recommend a few stocks from the show. But that would be done only after analysts here at StockPM have done their homework. Also in future blogs we will discuss various props used by Cramer.

Comments

  1. AnonymousMarch 26, 2008 at 9:25 PM

    Good Article !! I would like to know how this is applicable to India stock market. But i would like if you start posting as Mad money guys does on Show

    ReplyDelete
  2. AnalystMarch 30, 2008 at 1:06 AM

    This article is meant for bloggers to learn about Mad Money show on CNBC.
    Also, in future you will see that recommendation on StockPM would provide comments similar to what Crammer does on the show.

    ReplyDelete

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