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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 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…

CNBC’s Jim Cramer said he thinks investors not only need to know what to do in case of a market crash or enormous sell-off, but why the crisis might be occurring.Over the course of Cramer’s decades-long career, he said he’s seen only two “truly horrifying” sell-offs: the crash of 1987 and the rolling crash of 2007 to 2009 during the financial crisis. To Cramer, the crash during the Covid-19 pandemic doesn’t compare to either of these because the market rebounded immediately.But Cramer noted a difference between the two, saying the crash in 1987 wasn’t caused by an overarching failure of…

To CNBC’s Jim Cramer, saving for your child’s college expenses is one of the best things you can do to set them up for success.A 529 college savings account is the most effective way to make sure your child isn’t heavily burdened with academic debt, Cramer said.”Paying for your kids’ college education isn’t as important as providing for yourself in retirement, at least not financially,” he said. “But if you have children, then after you’ve made enough retirement contributions for the year, putting money in a 529 college savings plan should be the next item on your agenda.”Cramer suggested parents…

CNBC’s Jim Cramer said he thinks financial literacy is lacking at most schools in the U.S., especially when it comes to individual retirement accounts, or IRAs, as well as 401(k) plans. It’s important that everyone knows how best to save for retirement with some sort of tax-favored account, according to Cramer.Cramer explained that putting your retirement savings in a 401(k) or an IRA can both be good options. One might be better than the other depending on your individual needs or your employer’s policies.”The best thing about a 401(k) is that it’s tax deferred,” Cramer said. “In plain English, that…

CNBC’s Jim Cramer said he spends a lot of time helping investors deal with their mistakes. Market action doesn’t always make sense, he explained. Stocks can go up or down for unknown reasons.”The market’s going to make mistakes,” he said. “Your job is to recognize when it’s doing something wrong and try to take advantage of it.”Like any other market, Cramer said, the stock market is prone to distortions. He stressed that stock prices do not solely reflect a company’s fundamentals. Perceptions on Wall Street and the mechanics of money management also play a factor.The rise of exchange-traded funds has…

CNBC’s Jim Cramer said he knows his rules can sometimes be contradictory — have faith in companies, but also prepare to change your mind on a dime. Be cautious but be ready to pounce if a good opportunity presents itself.”Believe me, I get it. If you take all my rules literally, you’re going to be running around in circles while tearing your own hair out,” Cramer said. “How do you think I went bald?”To Cramer, what you need most if you decide to pick your own stocks is good judgment, which he said is something that can take a lot…

CNBC’s Jim Cramer stressed that investing goals can change as you age. The older you get, the less risk you may be able to take, he said.But while he said he thinks it’s a good idea for investors to have a mix of index funds and individual stocks, Cramer’s rule for those just out of college is to invest your first significant chunk of savings in an index fund. The possibility of one bad stock hurting your nest egg in your twenties is too risky, he said.”There’s too much risk in individual stocks to just put together a portfolio of…