Editor's note: Jim Cramer's new book, Real Money: Sane Investing in an Insane World
, is available in selected bookstores now. As a special bonus to RealMoney
readers, we will be running Cramer's "Twenty-Five Rules of Investing." For more about the new book and to order it,
No broker likes to fool around with partial orders. No financial adviser has the time to buy stocks methodically over time. The game is to get the trade on, at one level, in a big way. Make the statement buy. Get the position on the sheets or in the portfolio.
And from where I sit, that's all wrong. 100% wrong. Never buy all at once. Never sell all at once. Stage your buys. Work your orders. Try to get the best price over time.When I first started out as a professional trader, I wanted to prove to everyone how big I was and how right I would be. If I wanted to buy Caterpillar (CAT - Get Report), by golly, I wanted to buy it now, big, at one price, because I was so sure of how right I was. "Put me up on 50,000 CAT!" I would scream, as if I were the smartest guy in the universe. What an arrogant son of a gun I was. Arrogant and wrong. What should I have been doing? Following my rule that you don't buy all at once. If I wanted to get 50,000 CAT in, I would buy it in units of 5,000 over time, trying to get the best price. I would put some on to start and then hope to work my way down to get a better basis. I no longer trade institutionally. I no longer trade "in size." But I still invest for my
|1.||Pigs Get Slaughtered||2.||It's OK to Pay the Taxes|
|3.||Don't Buy All at Once|
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