If you have ever watched CNBC for more than two minutes you have probably come across an over caffeinated personality known as Jim Cramer. He is successful ex-hedge fund manager that turned his love for everything stocks into a successful second career as an author, market commentator for CNBC, and host of his own show Mad Money. Love him or hate him, he provides an insight to the stock market through the eyes of a seasoned investor.
What is Action Alerts PLUS
Jim Cramer’s Action Alerts PLUS is a subscription service through TheStreet.com. It was started in 2001 as a way to follow the investment decisions for his charitable trust portfolio. The charitable trust was setup with Cramer’s own money and the goal of giving any realized profits to charity.
The Action Alerts PLUS service alerts subscribers by email and through the website when Cramer and his research team recommend a stock to be bought or sold. As well as providing subscribers with a reference tool for investing and trading in the stock market.
What To Expect From The Service
I was given the opportunity to test drive the service for a month. What I was expecting and what I received were very different. I was expecting just an email or two each week stating buy stock A or sell stock B.
What I received was a wealth of information as to the “why” of every recommendation. Usually receiving several emails a day detailing recommendations, economic data, market data, and “how” it affected each stock. Including a weekly summary of every stock in the Action Alerts PLUS charitable trust portfolio.
Simply put, the service provided more than just a simple stock trade in my inbox every now and then. Action Alerts PLUS most notably provides:
- In Depth Email Alerts
- Weekly Portfolio Roundup and Rankings
- Archive of Every Alert since Inception
- Action Alerts PLUS Portfolio with Trade Details
- 25 Rules For Investing
- 10 Commandments For Trading
The Action Alerts PLUS service provides a wealth of information on how to view the daily market news as it pertains to your investments, sift through what’s important, so you can act accordingly. It offers you the insight and know how to venture into stock picking on your own.
My Take – For New Stock Pickers
I’d recommend Action Alerts PLUS to anyone interested in stock investing or who just wants a better understanding of how the stock market works. The educational tools and expert guidance makes taking on the stock market easy to pick up and understand.
For experienced investors (I’d like to include myself as one), while the email alerts and tools were informational, it was more of a review or reminder of what I’d already known. The expert opinion was helpful but limited only to those stocks that were recommended or part of the Action Alerts PLUS portfolio.
I’d like to point out a few things to keep in mind regarding stocks and investment advice. A commission fee is charged when you buy and sell stocks. Do this too much and the only one making money will be your broker. Keep this in mind when you start investing in stocks.
Is Jim Cramer right all the time? No. But if you can find an investor or service that is always right, 100% of the time, I’ve got a bridge I’d like to sell you. There is no guaranteed money making system when it comes to investing in anything.
The knowledge gained from learning the “what”,”how”, and “why” of economic data, market data, and stock data will benefit anyone as a teaching tool. Whether Jim Cramer’s investing style fits within your risk tolerance and style of investing is the question. The only way to find that out is give it a try. Sign up today for a 14-day free trial to Jim Cramer’s Action Alerts Plus.