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RealMoney Radio Mailbag: Learn Your Limits

Cramer explains why investors should use limit orders.

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 General Motors Company Report now that a sale of GMAC has been announced?-- Pablo from New York

Jim Cramer

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TheStreet Recommends

: 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 Toyota Motor Corp. 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

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