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RealMoney.com: Jim Cramer Blog
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This Is Why You Don't Buy When We're Up Big

By Jim Cramer
RealMoney.com Columnist

4/7/2008 3:47 PM EDT
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This is the first time that it didn't pay to pay up in what seems like ages. These reversals feel so awful and make everyone think, "Hmmm, that was stupid."

That's why it doesn't pay to put all of your money to work. If you bought a little of Potash (POT - commentary - Cramer's Take) when it was up big, you an either kick it out and start all over again, or you can wait until tomorrow and get it a little lower, which would be my bet.

Now, here's the truth. I don't know anyone who has ever done it this way other than Karen Cramer and Jim Cramer. That's about it.

Everyone wants to be the big guy and say, "That is it, I am putting the money down on POT right here."

That person right now has "no room" to put more on.

That's a recipe for being killed even if the company's a good one.

You now have to wait to buy lower. The reversal wasn't able to crack most stocks, but it did produce some short-term levels that will be hard to breach. But if you are a buyer of fertilizer or solar or infra, you are feeling singed if not burnt. You got the pullback just when you didn't want it.

The action should bring out more sellers tomorrow.

At the time of publication, Cramer had no positions in the stocks mentioned.






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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

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