Jim Cramer has some thoughts for investors approaching the markets this week.
Watch the video above, and see the questions that Jim Cramer answered on the floor of the New York Stock Exchange here.
After a full week of this kind of volatility, the rollercoaster ride if you will, what kind of terms should investors start putting in their back pocket?
Well, I think what investors have to do is say, "Okay. What would I, uh, be willing to buy more of if I got it?" So, um, let's take Fry's, all right? Fry's is not up today. So that's interesting to me, right? Safe havers- haven stock. You buy some now and then you wait two points until you buy some, uh, later, and that's what you want.
Now if you were to buy Boeing and if it went down, would you sell it? Um, then, uh, it's obviously you shouldn't buy it. So what I like to do in times like this is, you know, unfortunately a lot of trading is done by keystroke for individuals.
One is you have to try to explain to me three reasons why you would buy, and then the second is would you buy in stages? And then the third is would you panic and sell, uh, or would you use the panic to buy? All those are time honored. They're right. They've been, uh, rule... They've been drafted, uh, and I've had them since 1983. They've worked ever since so they're inviolate to me.
That's what you do. They even worked during the Great Recession, although obviously I'd use wide scales. Uh, but if you can't do that and you don't have the cash to buy it, then what are you going to do is you're going to buy Nike at 86 and then tomorrow, when the machines set to have it go down, you'll sell it at 81.
And so you have to decide whether you can buy Procter at 119 knowing it's up three from the get-go and it won't go up any more because the machines may not be set to be up a thousand. Uh, and then tomorrow it's at 116, would you buy more or will you sell? Remember the machines are binary and ever- everyone needs to know that.
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