Jim Cramer's Live Chat Recap: Q&A

NEW YORK (TheStreet) -- TheStreet's Jim Cramer, who co-manages the Action Alerts PLUS portfolio, has opened up for a question and answer session with the broader retail investing public. Here's what he had to say

What financial reason is there to limiting the number of stocks I own and why should I only own 10? 

As professionals, Cramer and Stephanie Link can manage around 30 stocks in the Action Alerts PLUS portfolio, which is very overwhelming. But these are full-time professionals. Cramer says for someone who is new to the market or has a full-time, non-stock-market related job, 10 stocks is certainly enough. When you consider the time it takes to thoroughly research each company, 10 is the logical amount, unless you're a full-time professional. 

How can investors master timing? How do you really know when to buy and when to sell?

Most people don't know why a stock goes up or down, which usually results in them making the wrong decision. If investors study why stocks go up from demand and why they down go from supply, while studying what triggers the supply and demand -- like technicals, long-term trends and CEOs -- then investors will do well. Get Rich Carefully goes over this concept thoroughly. 

I just bought your book and started my first portfolio at 19 years old, I was wondering if you could give me some good starter stock advice.

Take an elevated amount of risk. You have got to be in names like Google (GOOG), Facebook (FB) and maybe even Twitter (TWTR). Usually it's smart to only have one speculative stock in your portfolio. But at this young of an age, three or four speculative stocks will work. When you're young, you have the time to take risk because you can make it up down the road. 30 years ago, Home Depot (HD) and Comcast (CMCSA) were considered speculative stocks. Look at them now. 

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