Inverse Cramer Traders Doubt Jim Cramer's Investment Discipline

Jim Cramer's investment rules have been scrutinized by traders who follow an inverse strategy based on his stock picks. The Inverse Cramer Trade, which is tracked through the SJIM ETF, has shown a 15% loss since its launch in March 2023 with $2.4 million under management. This contrasts with a separate mirror portfolio built through Autopilot's trading app that has gained about 158% since its launch in 2023.

The Inverse Cramer Trade, which shorts stocks recommended by Cramer on Mad Money, was launched alongside the Long Cramer ETF in March 2023. However, the long fund shut down five months later due to low investor interest. The short fund, SJIM, followed suit in February 2024.

Cramer's investment rules include never buying a full position at once and always keeping cash on hand. He also advises against panic-selling during market downturns. However, the Inverse Cramer crowd points out that he has broken these rules himself, including selling his Bitcoin holdings due to quantum-computing fears while advising a caller to buy the coin.