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Playing the Panics

The lesson is to be liquid enough to buy, not sell, on these crazy days.
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Looks like I picked the wrong day to stop sniffing glue.

Understand that this day may be a harbinger of what is to come. We may have to get used to buying them down 20 and selling them up 10.

It is crazy out there. But you can beat it if you take the approach that you are liquid and you can use the periodic panic to buy, not sell.

That was the lesson of this wild, wacky day.

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Don't blame the traders for taking profits. A buy at the bottom goes a long way to making back some of the losses people have suffered.

Random musings:

Liquidity alert: We moved stocks three and four points with buys of 2,500 shares here today. That bodes poorly for all but the largest of large-cap stocks because you simply could not get in or out.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.