CNBC's Jim Cramer urged investors to take profits as stocks go parabolic, saying those explosive rallies often unravel just as quickly once momentum fades.
He pointed to Arm Holdings and Corning, which his Charitable Trust trimmed to protect gains before recent pullbacks.
Cramer noted that investors should be cautious when stocks rise sharply, as those rallies can often end quickly.
He advised investors to opt for stair-step stocks, which, while they may not yield quick profits, are more stable.
He cited Arm Holdings and Corning as examples, showing how his Charitable Trust sold positions when they went parabolic.
Cramer cautioned that investors should not view steep declines as automatic buying opportunities.
