Jim Cramer and Director of Portfolio Analysis Jeff Marks fielded a range of questions during the Club’s Annual Meeting on Saturday. Here’s a summary of their answers to some of the questions, including how to determine the number of shares to buy or sell and Jim’s advice on stock-picking for kids. 1. How do you stay level-headed through sell-offs? — Emanuel; How do you get over the fear of a major decline in a stock? — Vikki Drawdowns in the stock market are inevitable and not necessarily something to dread, Jim said. “You want to be able to embrace the sell-off and say, ‘OK, it’s going to get me my price,’” Jim said. “You have to flip the psychology of it because otherwise what happens is you play in fear, and fear is not a strategy.” During these declines, Jim said to focus on a stock’s price and pick a level to start buying. When it falls to that price, put some cash to work. Not all your cash, though. Wait until maybe it drops another 3% to 5% then buy a little more, and then perhaps again at 7% to 8% down. The goal is to make sure the purchases count and can help lower your cost basis in a stock, rather than all being executed at roughly the same price. “You want to play from strength at all times, but the strength comes from mental strength. Yes, cash can help, but it’s the idea that you’re the coolest person in the room. Let the other people give you your price,” Jim said. In some instances, the decline in the stock may be tied to troubles that test your conviction in the company’s long-term prospects (more on how to spot those situations later). It’s hard to admit you made a mistake, Jim said, but he offered a thought exercise to consider. “You have to imagine what would happen if you had sold it, waited it out and then the next day came back,” Jim explained. “If you wanted really to buy it back, then it is a good position. But the odds would favor that you didn’t and that [selling] would be the right thing.’” 2. How do you decide on how many shares…
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