Cramer's 'Mad Money Recap': Tools of Cramer's Trade

Once people have done their homework on the stocks, differentiating between the broken stocks and the broken companies, and feel the bottom is close, "that's when you start putting on your positions in your unbroken shopping list names," he said.

Finally, "always try to sell into strength," Cramer said, but not all at once. "Sell part of your position now, but wait for some strength before you unload the rest," he said.

However, if the wait is too long and either there's no strength or you have evidence the stock will only go lower, then you can sell.

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

For more of Cramer's insights during the Lightning Round, click here.