You Ask, Cramer Answers

Jim Cramer answers questions on buying shares on the way up and more.
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Stockpickr Answers

, Jim Cramer recently responded to a new batch of questions posed by members of the Stockpickr community.

Anybody can ask, respond or comment at Stockpickr Answers; the top responders get ranked in our "Top Analysts" section.

Here are a few of the questions to which Cramer recently responded. (Note: You may have to scroll through several answers to see Cramer's.)

  • Jim, You've talked a lot about not putting up 100% of your position from the start, to buy in stages, and to buy on the way down to improve your cost basis. I haven't heard you talk any about accumulating shares on the way up. If you start with 1/4 of the amount you ultimately want to own, and it goes up from there, are there certain percentages that you use to buy more? I've found that to maximize gains in a rising market, you have to stay on top of your winners just as much as losers, or you'll find yourself with only 100 shares of a stock like Navteq (NVT) - Get Report or NokiaTICKER TYPE="EQUITY" SYMBOL="NOK" EXCHANGE="NYSE" PRIMARY="NO"/> that's up big when you'd much rather have 400.
    Click here for Cramer's answer to this question.
  • I recently asked how we evaluate Bank of America'sTICKER TYPE="EQUITY" SYMBOL="BAC" EXCHANGE="NYSE" PRIMARY="NO"/> option in China Construction Bank. And a couple of weeks ago they gave us the answer; does that mean we can look for a great fourth-quarter earnings report?
    Click here for Cramer's answer to this question.
  • Do you know what a real "gimmee" is? About 20 years ago I was watching FNN around 3:45 pm (ET) and the commentator (maybe Ron Insana, I forget) says, "We've just got news that Time Life will be making a bid for Warner Communications in the amount of ..." I saw the ticker and Warner was still having a regular day. I wasn't sure if I heard him right and there was no TiVo so I called my dad and told him I wanted to buy $5,000 worth of options right this second! He told me not to be stupid, that I'd lose all of my money. I believed him and bought $20,000 worth of stock instead. Anyway, late that night it was confirmed and I had a nice $10,000 or so profit in a day! Imagine if my dad let me buy the options! I was young and stupid. Well, I'm still waiting for another gimmee 'cause I haven't seen another one since!
    Click here for Cramer's answer to this question.

For an archive of Jim Cramer's Stockpickr answers, go to www.stockpickr.com/answers/ and type "Jim Cramer" under "search for questions." Select "Username - Answered" from the dropdown menu at right, and click "search." The most recent questions will appear first.

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