If using pgfplots would be ok for you then you could avoid such problems. Instead of the standalone class you can, of course, use any other documentclass you like.
Edit: I pimped my example a little. If you want to label some points or add function definitions etc. to your plot you can do this like in any other tikzpicture: creating nodes and drawing works in the same way as usual. To make your life easy you can access the in-plot coordinates via axis cs:, so if you want to create a node at the in-plot point x=1 and y=0 you can use something like \node at (axis cs:1,0) {$x=1$};.
\documentclass{standalone}
\usepackage{pgfplots}
\begin{document}
\begin{tikzpicture}
\begin{axis}[
restrict y to domain=-5:5,
samples=1000,
ticks=none,
xmin = -5, xmax = 5,
ymin = -5, ymax = 5,
unbounded coords=jump,
axis x line=middle,
axis y line=middle,
xlabel={$x$},
ylabel={$y$},
x label style={
at={(axis cs:5.02,0)},
anchor=west,
},
every axis y label/.style={
at={(axis cs:0,5.02)},
anchor=south
},
legend style={
at={(axis cs:-5.2,5)},
anchor=west, font=\scriptsize
}
]
\addplot[color=blue, mark=none, domain=-5:5] {x^3)/((x^2) - 1)};
\addlegendentry[blue]{$f(x)=\frac{x^3}{x^2 - 1}$}
\draw[dashed] ({axis cs:1,0}|-{rel axis cs:0,1}) -- ({axis cs:1,0}|-{rel axis cs:0,0});
\draw[dashed] ({axis cs:-1,0}|-{rel axis cs:0,1}) -- ({axis cs:-1,0}|-{rel axis cs:0,0});
\node[below right, font=\scriptsize] at (axis cs:1,0) {$x=1$};
\node[below left, font=\scriptsize] at (axis cs:-1,0) {$x=-1$};
\end{axis}
\end{tikzpicture}
\end{document}

Edit:
Here is a pure tikz solution. It's not very elegant but in case one doesn't want to use pgfplots it might be a good starting point.
\documentclass{standalone}
\usepackage{tikz}
\begin{document}
\begin{tikzpicture}[smooth, scale=0.5]
\pgfmathsetmacro\ymax{pow(1.05,3)/(pow(1.05,2)-1)}
\draw[->] (-10,0) -- (10,0) node[right] {$x$};
\draw[->] (0,-\ymax) -- (0,\ymax) node[above] {$y$};
\draw [color=blue, thick, domain=-10:-1.05, samples=200] plot ({\x},{pow(\x,3)/(pow(\x,2)-1)});
\draw [color=blue, thick, domain=-0.96:0.96, samples=200] plot ({\x},{pow(\x,3)/(pow(\x,2)-1)});
\draw [color=blue, thick, domain=1.05:10, samples=200] plot ({\x},{pow(\x,3)/(pow(\x,2)-1)});
\draw [color=black, dashed] (-1, -\ymax) -- (-1, \ymax);
\draw [color=black, dashed] (1, -\ymax) -- (1, \ymax);
\end{tikzpicture}
\end{document}
