RealMoney Radio Mailbag: Learn Your Limits

Cramer explains why investors should use limit orders.
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Editor's note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.

Jim, do you recommend using limit orders?-- David from New Jersey

Jim Cramer

: Yes, I believe that investors should definitely use limit orders, which allow you to set the maximum price you wish to pay for a stock. This is especially important with volatile stocks, when buying at the open, and when buying IPOs on the first day of trading.

What do you think of General Motors (GM) - Get Report now that a sale of GMAC has been announced?-- Pablo from New York

Jim Cramer

: I am still not a fan of General Motors. Unfortunately, this sale will not change the fact that the company still isn't making the cars and trucks people want.

Toyota Motor

(TM) - Get Report

is my top pick in the auto space.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

.