Jim Cramer’s guide to investing: How to use the 'new high' list for stocks (2024)

Jim Cramer’s guide to investing: How to use the 'new high' list for stocks (1)

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I rarely recommend buying stocks straight off the new high list, says Jim Cramer

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 than change in the market, but that doesn't mean these stocks will continue to climb. Investors must be ready for unpredictable factors that can change the market, such as interest rates or political events.

The best way to target stocks on the "new high" list is to be patient and find a high-quality stock that is seeing a temporary pullback, Cramer said. But if a stock on the new high list is seeing a decline due to problems with a company's fundamentals, it's best to stay away.

"Poring over the 'new high' list is a fabulous way to identify potential, and I stress that word, potential stocks to buy," Cramer said. "You only buy stocks that have pulled back from the 'new high' list if you're confident they'll make a comeback for substantive reasons unrelated to the broader market."

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Jim Cramer’s guide to investing: How to use the 'new high' list for stocks (2024)

FAQs

What stocks does Jim Cramer recommend? ›

Don't Miss: Jim Cramer's Stock Picks Heading into May 2024

Some top names in the list include Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) and NVIDIA Corp (NASDAQ:NVDA). With each stock we have mentioned the number of hedge fund investors.

What are the top 10 stocks to buy right now? ›

Sign up for Kiplinger's Free E-Newsletters
Company (ticker)Analysts' consensus recommendation scoreAnalysts' consensus recommendation
Amazon.com (AMZN)1.29Strong Buy
Nvidia (NVDA)1.33Strong Buy
Microsoft (MSFT)1.33Strong Buy
Bio-Techne (TECH)1.39Strong Buy
21 more rows

What is the rule number 1 in the stock market? ›

Rule #1 comes from the famous statement from Warren Buffett: “Rule No. 1: Never lose money.

How to invest in stocks the complete guide? ›

  1. Step 1: Set Clear Investment Goals. Begin by specifying your financial objectives. ...
  2. Step 2: Determine How Much You Can Afford To Invest. ...
  3. Step 3: Determine Your Tolerance for Risk. ...
  4. Step 4: Determine Your Investing Style. ...
  5. Choose an Investment Account. ...
  6. Step 6: Fund Your Stock Account.

What is the most successful stock predictor? ›

AltIndex – We found that AltIndex is the most accurate stock predictor for 2024. Unlike other providers in this space, AltIndex relies on alternative data points, such as social media sentiment and website analytics. It also uses artificial intelligence to convert its findings into risk-averse stock picks.

What is the most valuable stock to invest in? ›

What Is the Most Expensive Stock in the World? Berkshire Hathaway is the world's most expensive stock. One of the main reasons why the company's stock is so expensive is because it never went through a stock split.

Which stock will boom in 2024? ›

Top Long Term Stocks to Buy in 2024 Based on 5Y Avg Net Profit Margin
Stock NameSub-SectorShare Price
Kotak Mahindra Bank LtdPrivate Banks₹1,690.10
Tata Consultancy Services LtdIT Services & Consulting₹3,736.10
Eicher Motors LtdTrucks & Buses₹4,742.95
Coal India LtdMining - Coal₹483.95
6 more rows
6 days ago

What stocks is Congress buying in 2024? ›

Join Our Market Watch Newsletter!
StockPoliticianFiled
DHR Danaher CorpWhitehouse, Sheldon D SenateMay 20, 2024
RTX Rtx Corporation Common StockWhitehouse, Sheldon D SenateMay 20, 2024
NVS Novartis Ag AdrWhitehouse, Sheldon D SenateMay 20, 2024
NVDA Nvidia Corporation - Common StockTuberville, Tommy R SenateMay 15, 2024
47 more rows

What is the best performing stock of all time? ›

The Best Performing Stocks in History
  • Coca-Cola. (NASDAQ: KO) ...
  • Altria. (NASDAQ: MO) ...
  • Amazon.com. (NASDAQ: AMZN) ...
  • Celgene. (NASDAQ: CELG) ...
  • Apple. (NASDAQ: AAPL) ...
  • Alphabet. (NASDAQ:GOOG) ...
  • Gilead Sciences. (NASDAQ: GILD) ...
  • Microsoft. (NASDAQ: MSFT)

What is the golden rule of stock? ›

In short, macroeconomics is arguably the most important determinant of equity returns. This fact leads to what I call the “Golden Rule for Stock Market Investing.” It simply says, “Stay bullish on stocks unless you have good reason to think that a recession is around the corner.”

What is the 90% rule in stocks? ›

Understanding the Rule of 90

According to this rule, 90% of novice traders will experience significant losses within their first 90 days of trading, ultimately wiping out 90% of their initial capital.

What is the 2 rule in stocks? ›

The 2% rule is a risk management principle that advises investors to limit the amount of capital they risk on any single trade or investment to no more than 2% of their total trading capital. This means that if a trade goes against them, the maximum loss incurred would be 2% of their total trading capital.

What is the best stock to invest in for beginners? ›

Like Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:META), Vistra Corp. (NYSE:VST) is among the best beginner stocks to buy this year.

How much money do I need to invest to make $3,000 a month? ›

Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.

What is the best way to do stocks for beginners? ›

How to start investing in stocks: 9 tips for beginners
  1. Buy the right investment.
  2. Avoid individual stocks if you're a beginner.
  3. Create a diversified portfolio.
  4. Be prepared for a downturn.
  5. Try a simulator before investing real money.
  6. Stay committed to your long-term portfolio.
  7. Start now.
  8. Avoid short-term trading.
Apr 16, 2024

What stock does Warren Buffett recommend? ›

Although old-guard favorites such as American Express (AXP) and Coca-Cola (KO) still form the core of the portfolio, Buffett & Co. have taken a shine to names such as Apple (AAPL) and Amazon.com (AMZN), and even to lesser-known firms such as Snowflake (SNOW) and Nu Holdings (NU).

What is the best stock according to value? ›

Compare the best value companies
Company (Ticker)SectorMarket Cap
Comcast (CMCSA)Communication services$148.86B
Lockheed Martin (LMT)Industrials$108.62B
Bristol-Myers Squibb (BMY)Health care$81.59B
Deere & Co. (DE)Industrials$101.60B
2 more rows

What is the best stock to put money in? ›

The 9 Best Stocks To Buy Now
Company (Ticker)Forward P/E Ratio
Alphabet, Inc. (GOOG, GOOGL)13.2
Intuitive Surgical, Inc. (ISRG)52.2
Tapestry, Inc. (TPR)12.3
TopBuild Corp. (BLD)18.2
5 more rows

What does Dave Ramsey say about stocks? ›

We recommend a buy-and-hold strategy when it comes to investing. The stock market is like a roller coaster. There are going to be ups and there are going to be downs—the only people who get hurt are the ones who try to jump off before the ride is over.

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