NEW YORK (TheStreet) -- The stock market's volatility over the last two days provides valuable lessons for investors, according to TheStreet's Jim Cramer, portfolio manager of Action Alerts PLUS.
"You can't use market orders. The markets don't work really, they don't have the capacity in high volume moments," said Cramer. "Forget the SEC and what they may say, or all the reassurances from different people who work at the exchanges and protect yourself, use limit orders."
Jim added that limit orders can ease investors' worries in times of market turmoil.
"Stop trying to think that it's perfect. It's not perfect, it's caveat emptor. So use limits, and then you don't have to worry about buying a clunker."
Earlier, Cramer wrote, "Don't trust the market. It ain't worth your trust. But companies are worth your trust."
On Tuesday, Best Buy reported quarterly results that topped analyst estimates, which sent the stock sharply higher early in the session.
It reported growth in domestic revenue, even as international revenue dropped.
Cramer attributed Tuesday's recovery rally on Wall Street to a few different factors, including China getting serious about liquidity issues, rather than just trying to prop up its stock market.
He also cited strong German exports, and said technically the market was oversold. Jim noted the S&P oscillator registered a negative 7, and that anything steeper than negative 5 means you should cover your short positions. On Tuesday, stocks recovered some of Monday's steep losses, despite another selloff in Chinese stocks.
At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.