diff --git a/jquery.placeholder.js b/jquery.placeholder.js
index 07bfc2b..6f32f15 100644
--- a/jquery.placeholder.js
+++ b/jquery.placeholder.js
@@ -17,6 +17,11 @@
 	var propHooks = $.propHooks;
 	var hooks;
 	var placeholder;
+	var events = {
+		'clear': 'keydown.placeholder',
+		'set'  : 'keyup.placeholder blur.placeholder',
+		'focus': 'focus.placeholder click.placeholder'
+	};
 
 	if (isInputSupported && isTextareaSupported) {
 
@@ -39,12 +44,12 @@
 			$this
 				.filter((isInputSupported ? 'textarea' : ':input') + '[placeholder]')
 				.not('.'+settings.customClass)
-				.bind({
-					'focus.placeholder': clearPlaceholder,
-					'blur.placeholder': setPlaceholder
-				})
+				.bind(events.clear, clearPlaceholder)
+				.bind(events.set, setPlaceholder)
+				.bind(events.focus, positionCaret)
 				.data('placeholder-enabled', true)
-				.trigger('blur.placeholder');
+				.each(setPlaceholder);
+
 			return $this;
 		};
 
@@ -60,7 +65,7 @@
 					return $passwordInput[0].value;
 				}
 
-				return $element.data('placeholder-enabled') && $element.hasClass('placeholder') ? '' : element.value;
+				return $element.data('placeholder-enabled') && $element.hasClass(settings.customClass) ? '' : element.value;
 			},
 			'set': function(element, value) {
 				var $element = $(element);
@@ -155,7 +160,8 @@
 		var input = this;
 		var $input = $(input);
 		var id = this.id;
-		if (input.value === '') {
+
+		if (input.value === '' || (input.value == $input.attr('placeholder') && $input.hasClass(settings.customClass))) {
 			if (input.type === 'password') {
 				if (!$input.data('placeholder-textinput')) {
 					try {
@@ -169,7 +175,9 @@
 							'placeholder-password': $input,
 							'placeholder-id': id
 						})
-						.bind('focus.placeholder', clearPlaceholder);
+						.bind(events.clear, clearPlaceholder)
+						.bind(events.focus, positionCaret);
+
 					$input
 						.data({
 							'placeholder-textinput': $replacement,
@@ -182,11 +190,33 @@
 			}
 			$input.addClass(settings.customClass);
 			$input[0].value = $input.attr('placeholder');
+
+			// if the original input had focus, return focus
+			if ($input.is(':focus')) {
+				positionCaret.call($input[0]);
+			}
 		} else {
 			$input.removeClass(settings.customClass);
 		}
 	}
 
+	function positionCaret() {
+		var input = this,
+			$input = $(input);
+
+		// if input is empty, position caret at the beginning
+		// otherwise let the browser select all input text
+		if (input.value == '' || (input.value == $input.attr('placeholder') && $input.hasClass(settings.customClass))) {
+			if (input.setSelectionRange) {
+				input.setSelectionRange(0, 0);
+			} else if (input.createTextRange) {
+				range = input.createTextRange();
+				range.move('character', 0);
+				range.select();
+			}
+		}
+	}
+
 	function safeActiveElement() {
 		// Avoid IE9 `document.activeElement` of death
 		// https://github.com/mathiasbynens/jquery-placeholder/pull/99