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To CNBC’s Jim Cramer, investors shouldn’t just bask in their gains when their stocks start to do well. It’s important to understand why a certain company soared, and wins aren’t always for reasons you think they are, he said.”It’s very helpful to understand why a stock you like is going up or down,” he said. “When you have a win, don’t lazily assume that you simply got it right — think about what it means if you were merely in the right place at the right time and please proceed with caution.”Sometimes a company will perform well for reasons not…

CNBC’s Jim Cramer said to be cautious when the market is flooded with initial public offerings because the influx of new stocks will inevitably drag the market down.”As much as I love anything that generates enthusiasm for the stock market, of course — and nothing does that like a few massively successful IPOs— you’ve got to be careful when we get a whole wave of new issues,” he said. “The IPO cycle tends to start out strong and generate a lot of euphoria, but then it burns out and all the new stock supply can really weigh on the market.”He…

CNBC’s Jim Cramer said investors shouldn’t obsess over news that’s already widespread across Wall Street, but instead pinpoint trends not yet accepted in the broader market zeitgeist.”If you want to be a better investor, don’t tear your hair out fretting about the same things as everybody else,” he said. “Instead, you should worry about the things other people don’t seem to care about, because the real threat is the one that you don’t see coming.”Cramer mentioned one economic theory called the efficient markets hypothesis, which suggests that stock prices always reflect all the relevant information available and immediately adjust when…

CNBC’s Jim Cramer began his professional investing career at Goldman Sachs. While there, he began to learn the basics of how to make money on the market, namely the importance of figuring out one’s individual investing goals and keeping a diverse portfolio.  “From my early days at Goldman Sachs, I learned the core principles of investing, finding solid ideas to build a diversified portfolio to create long-term wealth in a way that suits the customer,” he said. “Consider yourself the customer of this show.”At Goldman, Cramer handled nondiscretionary accounts, meaning he worked on commission and needed clients’ approval to invest…

CNBC’s Jim Cramer said he felt drawn to the stock market when he was in the fourth grade.He usually searched through his father’s copies of the Philadelphia Bulletin for sports and comics, but soon became curious about the business section, which had tables markedly different from the ones with batting averages he usually studied.”I was also a curious kid,” he said. “Curiosity’s always been both a blessing and a curse for me, not unlike the proverbial cat that’s always probing, looking and occasionally jumping on some hot stoves.”His father gave him a rudimentary explanation of the market, comparing the way…

Sooner or later, virtually all hot stocks implode, said CNBC’s Jim Cramer. And according to him, it’s important for investors to know when to cash in before that happens.By hot stocks, Cramer means speculative companies with relatively low market capitalization that are risky, but have the potential for high reward. At first, these stocks may receive little attention on Wall Street. When analysts begin to take notice, Cramer said, the stocks’ popularity will likely lose steam.”Once a red-hot speculative stock get too much attention, it means the rally’s likely on its last legs, because there are only so many people…

CNBC’s Jim Cramer revealed one of the methods he uses to find winning stocks: The “new high” list. This list shows stocks that are hitting new 52-week highs, and Cramer said it can be a good place to start researching worthwhile investments.”Watch for stocks that have pulled back from the new high list, especially due to a broad market sell-off,” Cramer said. “Some of my best picks have come out of this process, and hopefully some of yours can, too.”However, he cautioned investors against buying stocks purely because they are on the list. He said there is often more continuity…

CNBC’s Jim Cramer said investors should understand Wall Street jargon, including terms such as correction, rotation and execution.Cramer said a correction can occur when the market, or just an individual stock, has been roaring but then suddenly sees a steep decline. He said he knows corrections can seem like the end of the world, but he emphasized that stocks can usually bounce back, especially coming off a particularly high run.”Sell-offs are a natural feature of the stock market landscape. We don’t have to like them — I don’t — but we do need to acknowledge that they will happen no…

CNBC’s Jim Cramer aims to teach investors how to understand Wall Street jargon. For example, what does it mean when a stock or sector is described as “cyclical” or “secular”?”Investing ain’t easy, but it doesn’t have to be mystifying. You just need to learn the language,” he said. “Know the difference between cyclical and secular growers, and always stay diversified.”A company is cyclical if it needs a strong economy to see high returns. That means its performance relies on the business cycle. Cramer pointed to sectors like the industrials, automakers and homebuilders as “hostage to the vicissitudes of the economy.”Secular…

CNBC’s Jim Cramer explained to investors how to identify “garden-variety” market pullbacks and even find buying opportunities in these declines.”There are all sorts of sell-offs, but unless they involve systemic risk — which is increasingly rare, like in 2007, 2009 — they’re going to prove to be buying opportunities long term,” Cramer said. “You just need to recognize what’s driving the decline, note the signs that it might be subsiding and then take action to buy, not sell, and never to panic.”Cramer first described “margin-induced breakdowns” that can occur when money managers borrow more cash than they should and then…