Jim Cramer's Action Alerts Plus Review
-- "How to use Cramer's Newsletter a bit differently for low-risk, consistent profits."
Who doesn't know Jim Cramer, the flashy host of Mad Money Show on CNBC. Cramer has been a Professional Trader for the most part, and has made hundreds of millions of dollars for himself and his wealthy clients. Now, you too could profit from Jim Cramer using a really simple method described here, whether you are new to the stock market or a seasoned trader. In this Action Alerts Plus Review, the focus is on how to use Cramer's flagship Newsletter a bit differently, for low-risk consistent profits. The best part is that the profits are independent of whether Cramer made the right call or not. Even better - you can gain in bull, bear or sideways markets. I have been subscribing to Action Alerts Plus for many years now, and earning steady profits using this simple method, hence this focused review.
Frequently Asked Questions
How much does Action Alerts Plus cost?
As of Jan 17, 2014, Action Alerts Plus cost: $59.95 monthly, $349.95 annual.
A little tip to save you serious money: Annual subscription cost divided by 12 works out to be around half of the monthly price. Unlike the cellphone companies, there's absolutely no contract or Early Termination Fee for Action Alerts Plus annual subscription - cancel at any time and get your money back for the rest of the year. This is because Cramer wants you to stay subscribed only if you like his service.
What does that mean to you - the annual is pretty much like monthly, but at half the price.
Ready to try ? Go here to get Jim Cramer's Top-of-the-line Newsletter Action Alerts Plus at the lowest cost of just $29 a month. (which is $349.95 / 12). Just remember that the low price annual subscription is a limited-time deal that's not likely to last for long...
Even if you got here just to know the cost of Action Alerts Plus, do skip over the FAQ and read the rest of the review that describes a simple method to score low-risk consistent profits using Jim Cramer's newsletter. It's simple, it's different, it works.
What is Action Alerts Plus performance?Since it's inception, Action Alerts Plus performance has pretty much consistently exceeded the S&P500. If you've got 30 seconds to sign up for the no-fine-print free trial, you can view Jim Cramer's Action Alerts Plus performance and portfolio by clicking here. In any case, you can do much better than Action Alerts Plus performance if you follow the simple method described in this review. Read on...
Does Action Alerts Plus really work? Is it really worth it?Yes, it does and it's worth every penny. I haven't found any other stock market newsletter that lets you consistently buy low and sell high. Read on...
This method is quite low-risk, hence can be used to recover any losses that you may have had in a stock market crash. I'll talk about how to do that in the tips section of this review.
For your convenience, the review has been organized as three parts - first a quick summary of how to use Cramer's Action Alerts Plus Newsletter a bit differently to earn steady profits, then all the details including an example, and finally some tips that you may find useful to get the best out of Action Alerts Plus. Do spend a couple of minutes reading the entire article, to see how it would always work in your favor. I can assure you that it would be well worth your time.
Cramer's Action Alerts Plus can work like any other newsletter, where you buy a stock when he emails you a buy-alert and sell on a sell-alert. But if you do that, your profits are dependent on whether Cramer made the right call or not. Since he has made good (for example, Apple) as well as bad (example, Bear Stearns) calls, just blindly following Cramer's buy and sell alerts is risky, and wouldn't get you consistent profits. So, you see why we need to do things a bit differently.
This is what I do to achieve low-risk consistent profits from Cramer's Newsletter -
- As an Action Alerts Plus subscriber, Cramer emails me his stock-recommendations before he makes the trades. I buy a stock when he sends me the buy-alert.
- Now comes the interesting part. A few days after he sends me the buy-alert on Action Alerts Plus, Cramer mentions the same stock publicly - either on his TV Show, or, one of his team members publishes a positive article about that stock on the public area of Cramer's website. That's when I sell the stock. And that's what I do differently - I don't wait for Cramer to tell me when to sell, hence I'm not affected by his bad calls at all.
Isn't that really simple? Now, let's see how it would always work in your favor in many different ways that make Action Alerts Plus worth it.
As an Action Alerts Plus subscriber, you get to know Cramer's stock recommendations before the general public. Since Cramer is extremely popular and has lots of loyal followers on TV and the internet, it's very likely that the stock that he mentions in his Newsletter would go up at least for couple of days when his recommendation is made public. Some stocks rise as much as 10 to 20% within this short period. This is what I would call the Cramer Effect, and this is precisely what helps me achieve consistent profits without much of a risk.
Here's a simple example to drive home the point - Cramer sends me a buy-alert for stock XYZ on Action Alerts when it's at $10 per share. I buy 500 shares for a total of $5000. A few days later, Cramer rolls up his sleeves and runs a 15-minute segment on Mad Money about the same stock, and convinces his viewers about the promising future of this company. XYZ rises to $12 and I sell my 500 shares to the eager TV viewers for a $1000 profit in just a couple of days. And, there will be many such timed alerts every month. As you can see, I got a low-risk $2 gain on a $10 share - a 20% profit, and that too in just a few days.
What was that? You are one of those eager TV viewers that I always sell to and make money? Please accept my apologies! Well, I was exactly like you to begin with, and lost quite a bit of money listening to Cramer on TV. I used to buy stocks solely based on his recommendations on Mad Money, only to find that the stock would drop below my purchase price after a few days. One day, while watching Cramer's show, I heard him mention something like "...we like this stock at The Street, and we already recommended it to our subscribers of Action Alerts Plus a few days ago..." I was curious. I watched that stock go up for a few days after that, and then fall gradually to it's prior levels. I watched this phenomenon happen several times - Cramer mentions a stock on his show and also says he has already informed his Action Alerts subscribers a few days earlier, the stock goes up for a few days after he mentions on TV, and then falls back to prior levels. I even paper-traded several times using one of the finance websites' free tools. It works!
You know what, now it's your turn to get Action Alerts and earn steady profits by selling to the TV crowd. Sure, you got to pay for Cramer's Newsletter to get into the stock before the TV crowd, but you've already seen from the above example that you definitely get what you pay for. Even if you trade with just $1000 and earn just 10% profit based on one of Cramer's Alerts, that's $100 profit in just one trade, and that itself is way more than the monthly charge. So, if you trade with a larger amount of money and if you act on a few of Cramer's Alerts instead of just one, your subscription charges become totally insignificant compared to your profits.
That's the unique advantage of Cramer's Newsletter - it's backed by his hugely popular Mad Money TV show, making it very easy for you to sell your shares at a high price, when the TV-viewers start buying like crazy. Make no mistake - as a subscriber, it's only fair that Cramer informs you of his stock picks before the public. That's precisely what makes you really powerful. Armed with advance information, you are able to buy, for example, stocks for $10 and then sell to the general public for $12 - a 20% profit - several times a month.
Now, there's nothing illegal about this. Cramer and his team make these stock recommendations based only on publicly available information. They do not possess any material non-public information before they make the recommendations. It's perfectly fine to share this information with their subscribers first, and the public next. It's completely legal and is no different from the paid stock-research reports that you can download from finance websites. Hence, you could safely take advantage of Cramer's Action Alerts Plus for low-risk, steady profits.
Here's one of Cramer's own ads that talks about providing advance information
to his subscribers:
I have blacked-out the price because that ad was run last year at a different (higher) price, which would have been misleading for a reader of this article. If you click the ad today, you will see the current low price, but only after providing basic info like name and email. I wouldn't pressure you to become an Action Alerts Plus member, because I will lose one more person that I can sell my stock to, after Cramer mentions the already alerted stock on TV! But if I were you, I would sign up right away for his service for two reasons:
- You will not get another newsletter at this price that can give you guaranteed profits, every time.
- This low price will not last forever. Once Cramer gets enough sign ups, he would quite likely take the price back up. That said, this newsletter is definitely worth 10 times the price that it's selling for. Don't just take my word for it, you will find out yourself once you become a member...
In summary, you consistently buy low when Cramer recommends a stock in his Newsletter and sell high when the same stock is mentioned on Mad Money show - as simple as that. Such periodic low-risk gains are indeed a blessing in times of high degree of volatility and unpredictability in the stock market. We all know that the market can be quite merciless at times.
I'm fully aware that there are lots of Cramer-critics out there - I was initially one myself. But, let me ask a really simple question - if someone takes the huge uncertainty out of the stock market and enables you to make steady money, wouldn't that change your opinion about that person ? That's what happened to me, and that's the reason why I'm recommending Cramer.
To make a long story short - I suggest that you try what I did - Sign Up for a Free Trial of the Newsletter, and see for yourself how Cramer consistently alerts you first so that you can buy a stock, then mentions the same stock on his TV show sending it higher, so that you can always sell for a low-risk profit. If you don't like the service, you could always cancel. No questions asked. Hard to believe, but there are absolutely no catches or fine-prints for the Free Trial.
Sign Up for Action Alerts Plus FREE Trial Today
and make money by selling to the TV crowd.
There, I probably lost another person that I could've sold my stock at 10-20% profit, but that's OK, there are millions more that are ready to buy. Cramer gets new TV show viewers everyday, so there would be absolutely no shortage for folks that can buy your stocks with both hands!
Some tips on using the service:
- You could set aside just a portion of your cash balance for trading with Cramer. That's what I did, until I was a bit more comfortable with it. Currently I allocate around one-third funds to Action Alerts Plus and plan to increase it further. In any case, the monthly fee easily pays for itself in just one trade, even if you trade with just $1000, because the gain per trade is usually of the order of 10-20%.
- The annual subscription fee is only around half that of monthly fees for the Newsletter. Additionally, you usually get a Free Gift with yearly subscription, like one of Cramer's books. There's no commitment for annual subscription either - cancel any time and get your money back for the rest of the year.
- Even if you make only 10% profit per trade, you could potentially double your money in just 8 trades - that's the power of compounding. You know this already: 1.1 x 1.1 x... 8 times = 2.14. That is, if you start with $1000 and reinvest your 10% gain for the next trade, you end up with $2140 after just 8 trades, more than double of what you started with. Since this is low-risk, your chances of doubling your account are quite high and you can recover any losses that you may have had in a stock market crash. See below.
- Let's say you started with $10,000 in your portfolio and lost 25% in a stock market crash. Now you are left with $7500. Now, let's say you doubled your account in 8 trades using the simple method described in this review. You would now have $15,000 in your portfolio. You started with $10K and now have $15K, which means you recovered all of your losses and actually gained 50%, even when the market crashed. Not bad at all.
- Barron's #1 rated TradeKing is one of the best for trading with Jim Cramer's Action Alerts Plus due to it's ultra low commissions for stock trades. So, go ahead and today. No minimum balance needed.
- Sign up with an email address that you would be able to check during the stock market hours. The newsletter service is very professional and doesn't spam you, so you could use your primary email itself.
- Even if you missed a few alerts due to work or other reasons, that's fine because all it takes is about 8 trades to potentially double your money. There would be plenty of alerts each month.
- Cramer's website publishes the full recap of the Mad Money Show each day. You could just browse through the recap instead of watching the TV show, to help you decide when to sell your stock.
- If Cramer sends you buy-alerts for two stocks, but you only have funds to buy one of them, you could choose the stock which has the lower Average Daily Volume of the two. Stocks with lower average volume tend to rise quickly when Cramer recommends them later on TV, hence you get a higher percentage-gain for your money.