Cramer's next tip for investors: Learn how to trade. He said that learning how to trade stocks on a shorter-term basis will make home gamers better investors overall, as it will teach them many valuable lessons, especially in markets with large, volatile swings in every direction.
Cramer said his normal investment strategy would dictate that, if an investor wants to purchase 300 shares of a company, he or she would buy them in increments of 100 shares over a period of weeks or months, using broad-based selloffs as cues for the purchases.
However, a trading strategy is a little different, said Cramer. Trading around a core position dictates that, if an investor owns 300 shares, he or she would sell 50 of them anytime the stock moves higher by 3%. Then as shares retreat by 3%, an investor can buy them back on the cheap.Cramer said that trading in smaller increments may not seem like much, but over time, the profits can add up quickly. In today's markets, where stocks can soar one day and be thrown out with the bath water the next, it likely won't take long before home gamers begin to see their trading strategies pay off.