Cramer's Stop Trading! The Short Sellers Shoot Themselves (9/15/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Program, Tuesday September 15.

Las Vegas Sands (LVS), Deere (DE), Wynn Resorts (WYNN), Caterpillar (CAT), Joy Global (JOYG), Nucor (NUE)

Cramer says the short sellers shot first and asked questions later, since it is clear now that China is "on fire." Most of the stocks that have been performing well, Las Vegas Sands, Deere, Wynn Resorts, Caterpillar, Joy Global and Nucor, are strongly connected with China. "I think this is more of a make-love-not-war situation," said Cramer. "I just feel like the shorts have gone really wrong here."

::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round and his Stop Trading! Picks.

Get Cramer's Picks by email-- it's free and takes only a few seconds to sign up.

Seeking Alpha is not affiliated with Jim Cramer, CNBC or TheStreet.com

Comments

[Erwin:]

Question?
Cramer claims that calls are not screened, it seems unlikely
that all calls on the program are positive, considering some
of the terrible and costly boobs, with rare if ever admission.
Some one with the wherewithal should investigate, if indeed
the calls are indeed unscreened.
Erwin

Sep 16 10:04 AM

[kgeechee:]

Cramer's Calls and quick advice are a FREE Service to novice investors. We all know that Free Advice is worth exactly what the cost is....Zero. Think of the Show as entertainment (I rarely watch it, and then only a few moments when another show goes to commercial). One might get an idea occasionally and profit from the free advice. One might profit on some 'Picks', Avoid Losses on some Pans.

It is never GOSPEL and NEVER bet the Farm on any one stock idea.

As for the Big Loss on Sears, I would not have touched that with a10 foot pole. I do not care whose friend was backing it. If I had taken a big bet on Sears or any other position, SET a SAFETY STOP, a Trailing Stop. You could lose a few dollars on a good stock on a pull-back and you might avoid a disaster. I'd rather lose a few dollars sometimes to avoid a big disaster any time.

Sep 16 10:31 AM

[CoffeeRampage:]

Many investors just jump right in and then they make mistake after mistake costing them a ton of money. If you know what these mistakes are and you avoid them you will be way ahead of the game. This is why I decided to post Jim Cramer's list of the 5 worst investment mistakes.

1. Buy and Hold isn't a Strategy

The single worst and widespread mistake out there is Buy and Hold. Buy and hold is a thing of the past. Buy and hold isn't a strategy, it gives you a false sense of security. When you buy and hold you think "my work here is done", it's an excuse to be lazy. It needs to be "Buy and Homework". Listen in on conference calls. Check for Management confidence. You should be spending at least an hour a week studying, per stock.

2. Shoulda, Woulda, Coulda

If only I bought this or that. Don't dwell on missed opportunities or bad mistakes. When you can't get over your mistakes it becomes counter productive. Being an Investor is emotionally brutal. You have to be tough minded. Focus your time on making good decisions in the present. Learn from your past then move on. It is our nature to regret mistakes, but overdoing it won't get you anywhere. Don't let it throw you off your game. This is what really separates the good investors from the bad

3. Tips are for waiters. Not for Traders

You can get great stock tips. These are the ones from insiders who actually know company's future moves. These types of tips are illegal. The other types of tips are usually from someone who has an agenda. If someone wants to give you a stock tip it should send up a red flag. That being said there is a difference between a "stock tip" and a company that does the homework for you and gives you recommendations.

4. Lack of Diversification

Diversify. Diversify. Diversify. Don't keep your entire portfolio in one sector. You should not have more than 20%, even in a very hot sector. Remember the tech bubble. Enough said.

5. Buying your whole position at once

Sometimes you are your own worst enemy. In these times you need rules to suppress your instincts. Arrogance is a sin that will cost you a lot of money. Buying your whole position in a stock at one time is the most arrogant thing one can do. When you buy your whole position at once you are saying "this stock is not going any lower from this point on." That is arrogance. Build a position over time, not all at once. Patiently wait for good entry points. It's hard to time stock perfectly...Yet another reason to buy slowly.
-------------------
Money is like muck, not good except it be spread.
www.topinvestingtips.com

Sep 19 12:11 AM