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→‎Mad Money: Moving Mad Money to its own article
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== Mad Money ==
 
== Mad Money ==
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:''See Also'' : [[Mad Money Videos]]
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:''Main Article : [[Mad Money]]''
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The cable television program ''Mad Money with Jim Cramer'' began on [[CNBC]] in 2005. As mentioned on CNBC's [[Web site]] in an article titled, "Mad Money Manifesto" by Jim Cramer,<ref>{{cite web
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The cable television program ''Mad Money with Jim Cramer'' began on [[CNBC]] in 2005. [[Mad Money]] features eight segments: The ''Lightning Round'', ''Am I Diversified'', ''Sell Block'', ''Game Plan'' (also known as ''Speculation Friday''), ''Executive Decision '', ''Off the Charts'',  ''Sudden Death'', and ''Mad Mail''.<ref>{{cite web
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|url=http://www.cnbc.com/id/29723150
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|title=Mad Money Manifesto
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|author=Jim Cramer
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|publisher=CNBC}}</ref> the show's mission statement and Cramer's job is "to help regular people – shareholders at home watching the show – to better understand the market." ''Mad Money'' is about education, "this show isn’t about stock picking, as many critics think it is."<ref>[http://www.cnbc.com/id/32678502/site/14081545 This Show Is About Education], CNBC, September 3, 2009.</ref><ref>[http://www.cnbc.com/id/32678504 Moving With the Market]</ref><ref>[http://www.cnbc.com/id/32697315 3 Must-Haves Before Building Wealth]</ref> The show features eight segments: The ''Lightning Round'', ''Am I Diversified'', ''Sell Block'', ''Game Plan'' (also known as ''Speculation Friday''), ''Executive Decision '', ''Off the Charts'',  ''Sudden Death'', and ''Mad Mail''.<ref>{{cite web
   
|url=http://www.cnbc.com/id/17283246/  
 
|url=http://www.cnbc.com/id/17283246/  
 
|title=About Mad Money  
 
|title=About Mad Money  
 
|author=Jim Cramer
 
|author=Jim Cramer
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|publisher=CNBC}}</ref>
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|publisher=CNBC}}</ref> Jim Cramer's primary goal on the show is to help regular, every day investors "make Mad Money."
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=== Guidelines and rules ===
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Above all, Jim Cramer's primary goal on the show is to help regular, every day investors "make ''Mad Money''." However, due to some critics believing viewers just buy up whatever stocks he recommended, Cramer provided the tools needed to get the most from each episode. Therefore, Cramer mentioned, "The responsibility is on [viewers] to do [their] homework and make informed decisions before [they] buy."<ref>[http://www.cnbc.com/id/32678500 The Right Way to Watch Mad Money], CNBC's ''Mad Money'', September 3, 2009.</ref> One of ''Mad Money's'' biggest mantras is "do your homework."<ref>[http://www.cnbc.com/id/31671540 Do Your Homework], June 30, 2009.</ref><ref>[http://www.cnbc.com/id/31671541 Do Your Homework: Part 2], June 30, 2009.</ref> Cramer also provided suggestions for how-to do homework correctly, because not all information is created equal. It's important that viewers know what a stocks key metrics are and who the [[competition]] is.<ref>[http://www.cnbc.com/id/31671542 Do Your Homework: Part 3], June 30, 2009.</ref> Moreover, as Cramer pointed out, simply buying and holding a position for the long term doesn't work as an investment strategy. Instead, Cramer recommended "buy and homework."<ref>[http://www.cnbc.com/id/32644499 Why 'Buy and Homework' Is a Better Strategy], September 1, 2009.</ref> Because ''Mad Money'' is about [[education]], Cramer also created a list of "Road Rules"<ref>[http://www.cnbc.com/id/17583642/ Mad Money Road Rules]</ref> that all viewers should abide by, including five key [[rules]] that every professional knows.<ref>[http://www.cnbc.com/id/32243536 Staying Mad for Life], July 31, 2009.</ref> These rules are to help reinforce the notion that amateur investors can earn just as much [[money]] as professionals.
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=== The Lightning Round ===
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The ''Lightning Round'' segment of the show is supposed to be [[entertainment|entertaining]]. The [[segment]] is also about interactivity and the viewers and the stocks they think are important. Due to the nature of the ''Lightning Round'', it isn’t as well developed as the rest of the show, and it isn't about recommending individual stocks. By [[definition]], according to Jim Cramer, the ''Lightning Round'' is recommended as sector analysis; what sectors Cramer likes, which he doesn’t, and the stocks he considers best in show from any given sector.<ref>[http://www.cnbc.com/id/32678503 Think Sectors, Not Stocks, For Lightning Round], CNBC, September 3, 2009.</ref>
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=== Am I Diversified, Sell Block and Speculation Friday ===
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Each [[week]] Cramer reminds all investors of what they should be asking themselves, "Am I Diversified?"<ref>[http://www.cnbc.com/id/22326993 Are You Diversified?]</ref> Viewers call in and give Cramer their top five stocks; he then reviews the portfolio and suggests how they might consider enhancing their diversification, and lets them know whether or not they're diversified. Diversification is a cardinal rule on ''Mad Money''.
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Once a week Cramer tells viewers when to sell a stock during the Sell Block segment during ''Mad Money''. The Sell Block is devoted to two separate but related things: holding Cramer accountable, and focusing on when to sell. Just like any other ''Mad Money'' segment, Cramer said a stock that gets his sell call, it doesn’t mean viewers should empty out their holdings immediately. Most of the time, his recommendation is to slowly sell off your position in a stock.
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The Game Plan is something Cramer does every Friday in anticipation of the week ahead, and it's entirely about short-term trades. Cramer lays out where viewers should focus their "homework" efforts during the weekend to be fully prepared for when the bell rings Monday morning. This is the only segment on ''Mad Money'' where Cramer goes into the [[business]] of short-term, catalyst-based trading. Everything else on ''Mad Money'' belongs squarely in the investing column.
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Jim Cramer quote on the three segments on ''Mad Money'':
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{{Cquote|Use ''Am I Diversified?'' to get a better sense of what makes a strong portfolio. Speculation Friday is there to encourage you to do homework on speculative picks, and the Sell Block is for guidance on selling, for the thought process and for caution – it’s not the [[Ten Commandments]]. If you want short-term trades, then the ''Game Plan'' is the one part of ''Mad Money'' that belongs to you.<ref>[http://www.cnbc.com/id/32678505 How to Springboard Off Other Segments]</ref>}}
      
== Performance of stock picks and history of market calls ==
 
== Performance of stock picks and history of market calls ==
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