| I have been a fan of Jim Cramer for quite some | | | | buy and homework. He believes that when we buy a |
| time. I have read all of his books and have been very | | | | stock we have to take an active role in the |
| impressed with how easy they are to follow and, | | | | management of it. Each week we should be spending |
| more importantly, learn from. My favorite Jim Cramer | | | | at least one hour per week researching every stock |
| book is Real Money. It's a book I would recommend | | | | that we own. |
| for anybody who is trying to learn about the basics | | | | Of course he goes on to tell us what that research |
| of the stock market. | | | | is: reading the news articles, looking at the balance |
| One of the first ideas he talks about is the idea of | | | | sheets, listening to conference calls, and studying the |
| stock ownership. While many of us think that we | | | | charts. All of this is pivotal to knowing when it's time |
| actually own a piece of a company when we own | | | | to buy or sell. |
| stock, Cramer takes exception to this idea. | | | | This Jim Cramer book continues with more easy to |
| While you have a fractional interest in the company, | | | | understand advice that every investor must read. |
| technically, you hold no real rights. If every | | | | More of his personal trading rules are talked about as |
| stockholder were actually an owner that would mean | | | | well as which stocks to buy depending on where the |
| that we also have a debt obligation should the | | | | economy is. |
| company operate in debt. In theory, if we actually | | | | If you don't have the time or don't feel confident |
| owned a piece of the company, stocks would be | | | | that you can make the best investment choices, |
| able to have a negative valuation. More than buying a | | | | consider subscribing to a service like Action Alerts |
| piece of the company, we are loaning the company | | | | Plus where an expert like Jim Cramer is doing your |
| money in exchange for an interest. | | | | research for you and all you have to do is buy and |
| From there, this Jim Cramer book talks about buy | | | | sell when they tell you to execute the trade. My |
| and homework. The traditional buy and hold | | | | secret is that I don't have enough time to do all of |
| mentality, where we buy a stock and put it in our | | | | my research so I let Action Alert Plus do it for me. |
| dresser for a decade or more is replaced by Cramer's | | | | |