Jim Cramer is a controversial person. Nearly every day he's recommending a dozen or so stocks with unshakable confidence as if he knows the future. Many of those recommendations, if followed directly, do not end up very well, to say the least.
We took all the data from
MAD MONEY STOCK SCREENER, a website that tracks all the recommendations made since 2016-04-18. Every day after the show they update it with a new set of stocks mentioned in the show.
- Open LONG position for every "buy" recommendation made (Jim Cramer recommends 11-12 daily)
- Hold for 1 trading day + overnight
- Sell in the morning
Backtested since 2016-04-18 till today with $10K of capital
The results are pretty good for the "controversial" person. Once you are above $10K you basically have excessive cash that can be put into the same strategy or elsewhere.
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Would you trade like that?