Cramer calls traders who bought Apple at $163 ‘clowns’ (video)

With Apple’s share price in a post-event slide, Mad Money’s Jim Cramer adds insult to injury.

From CNBC‘s write up:

Cramer called the traders who bought Apple in the days leading up to the launch “clowns” because they wrongly assumed one of three things would happen.

First, they assumed that the iPhone X would be so great that it would shock people into buying the stock. Second, they assumed those people would buy them out of their positions. Third, they may have had no idea what they were doing.

“Any of those buyers are almost certain to be shaken out now, and that’s the worst thing you can do as a trader,” Cramer said. “You’re at the mercy of everyone else in the market. Many of these people are now thinking, ‘I’m an idiot, but you know what, I’ll just own Apple for the long haul.'”

Cue the video:

Apple stock & the differences between trading & investing from CNBC.

My take: Takes a clown to know one.

6 Comments

  1. John Butt said:

    😀

    “My take: Takes a clown to know one.”

    3
    September 14, 2017
  2. Gianfranco Pedron said:

    Anyone looking to replace Cramer will have big shoes to fill, very big shoes. 🙂

    1
    September 14, 2017
  3. William Kortum said:

    I wouldn’t call Cramer a clown. What he’s saying is that there’s a distinction between traders and investors. Traders hope to get paid for their short term bets. If you’ve got the skills to go up against the MBA’s and PhD’s who do trading for the investment banks, you’ll be in good shape. Most of us small folks have one edge against the pro’s: we can invest long term being very careful about our selections. Unlike the pro”s, we won’t have investors and managers breathing down our backs about yesterday’s results. Get the fundamentals right and 28 or 29% a year will do just fine in the long run. Cramer was saying it was wrong for people to set themselves up on the wrong side of a “sell on the news” trade. That said, he also said many amateur traders may mistake a lower price and a good long term buying opportunity for a time to sell. With investing, it pays to do one’s homework – and there is a lot of it. But it can be worth the effort.

    1
    September 15, 2017
    • Cramer is no dummy. He’s Harvard and Harvard Law and he’s been at this for a long time. But he does make a lot of clown noises.

      2
      September 15, 2017

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