Shorting Cramer picks

[Groty]

I was pursuing a similar strategy about a year and a half ago.....except I was shorting his picks in the aftermarket.

I was 6 for 6 in the first 6 times I did it. That led to overconfidence. I remember doubling down on the seventh trade on a Friday. Over the weekend, Goldman published a very bullish report on the company. The Cramer recommendation together with the Goldman upgrade meant there were no sellers and a boatload of buyers. The stock ripped and I got my face ripped off. I had no clue about the investment merits of the company when I entered the trade, so I paid up to cover.

That one trade wiped out nearly all my profits on the previous ones. It was speculative money that I was prepared to lose, but I was very annoyed to have made money on 6 consecutive trades and had almost all those gains wiped out by one trade.

Lesson learned. I haven't done it since.