The question of whether an investor is nimble enough to get back in quickly after selling a stock is one that has plagued Jim Cramer his entire life.
Even selling Bank of America at $23 a share with the intention of getting back in at $20 or $21 is risky. And for a hedge fund manager, they better be good. That is what investors pay them for.
Good trading means knowing when a stock has gone up too much and to leave it alone. And when it goes back down, buy the stock back at lower prices on the bet that estimates will need to come up if the Federal Reserve plans to raise rates, Cramer said.
"Bank of America's shareholder base is not monolithic," the "Mad Money" host said. "You will always have investors, people who believe in fundamentals and listening to the conference call and figuring out what to pay for the stock based on how much the company could earn."
Unfortunately, there is more to Cramer's approach.