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Cramer: Buy Good Stocks Rather Than Sell Them if They Fall Despite Good Earnings

M. Corey Goldman

Jim Cramer has unveiled his "5 Rules for Trading Stocks During Earnings Season," and Rule No. 3 is a bit counterintuitive -- "Expectations Matter More than Sales or Profits," so be ready to buy good stocks when they fall despite impressive earnings. "The deck is so darned short and the planes are so huge that it requires the pilot to almost kill the engine to be sure he doesn't overshoot," Cramer recalled. "As the planes would approach, the controller would say 'You're coming in hot, you're coming in hot, you're coming in hot' -- always trying to get the pilot to slow down.