Trader doubles portfolio by doing presenter’s reverse

Business newspaper and TV channel CNBC is not known to everyone as a reliable source of news. That’s not only because it’s mainstream media, but also because it’s home to presenter Jim Cramer. This former hedge fund manager and presenter often does exactly what you should not do as an investor. A trader has made a lot of profit by doing the exact opposite.

Literal ‘Inverse Cramer trade’

This decision didn’t just happen out of the blue. Cramer has been known for years as a very bad indicator to base your own decisions on. That’s why you can also find the on Twitter Inverse Cramer ETFwhere you regularly find interesting ideas about how not to follow the herd.

Algod active on Twitter writes that he officially the value of his account has doubled. More precisely, he has shorted Ethereum, and now has an account of USD 101,440 instead of USD 50,000. In a second tweet, he explains that he shorted Ethereum because Cramer went long on the Nasdaq index on the tech exchange of the same name. Tech stocks are strongly correlated to cryptocurrencies.

This means that Algod could easily go short on Ethereum (ETH) if Jim Cramer can indeed be used as an inverse indicator. Cramer tweeted on August 22 that he thought the Nasdaq index was undervalued. In any case, his 100% profit is worth it.

Frustrated presenter

That you the host of ‘Mad Money’ better not to take it too seriously is apparent from what he has stated in the past. For example, he was not positive about crypto at the beginning of July, after which we saw a modest increase in the market. The name of his show on CNBC, ‘Mad Money’, also makes sense. Cramer always seems to be frustrated and stressed.

Read Also:  Is Following Bitcoin Whales a Waste of Time?

It may be said that it is important to keep an eye on Cramer’s time window and context. If you wait long enough, he may well be right. Yet in theory the context deviates from what he originally said.

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