Editor's note: The following is a recap of RealMoney Radio that contains rebroadcasts of two segments.In Friday's special
The CommandmentsIn that vein, Cramer laid out his "Ten Commandments of Trading."
Cramer's 10 Commandments of Trading1. Never turn a trade into an investment. Have a clearly defined reason for buying a stock, and declare upfront whether the position is a trade or an investment. Consider writing down exactly why you are buying the stock and when the catalyst is going to occur. Once the catalyst has occurred or fails to occur, you must sell the stock no matter what. 2. Your first loss is your best loss. Most trades need to work immediately in order for them to be right. If the trade goes against you, sell the stock quickly and move on to avoid bigger losses. Don't fight it. 3. It's OK to take a loss when you already have one. Don't pretend you aren't losing money simply because you haven't sold a losing trade. "A loss is a loss whether it's realized or unrealized," said Cramer.