Action Alerts Plus portfolio manager and TheStreet's founder Jim Cramer has learned a lot over his 30+ years of investing. So he created a list of 25 Rules for Investing that can help you avoid the novice pitfalls that even he fell into on occasion.

In the video above, he talks about why you should not trade big bulk orders.

Rule 3: Don't Buy All at Once

"I no longer trade 'in size.' I still invest for my Action Alerts PLUS portfolio, and when I have a new name, I buy in 500-share increments over a day to get my several thousand-share position on. I did it in a way that gave me a terrific price," he says.

Stage your buys and work your orders to get the best price over time, he says.

So listen Rule #3 above as Cramer talks about how he made this mistake and was "an arrogant son-of-a-gun" at one point in his career.

Sign up and watch Jim Cramer's 25 Rules For Investing here!

Watch More of Jim's Rules for Investing:

More from Video

Buy CVS Stock 'With Alacrity' If It Falls 8% From Here, Jim Cramer Says

Buy CVS Stock 'With Alacrity' If It Falls 8% From Here, Jim Cramer Says

Why Jim Cramer Is Holding Off on Buying Nvidia Stock

Why Jim Cramer Is Holding Off on Buying Nvidia Stock

3 Things to Know at Market Close: Netflix, Chinese New Year, and KPMG

3 Things to Know at Market Close: Netflix, Chinese New Year, and KPMG

Stocks Are Walking a 'Tightrope' Right Now, and That's Good, Cramer Says

Stocks Are Walking a 'Tightrope' Right Now, and That's Good, Cramer Says

Why Jim Cramer Likes Cisco

Why Jim Cramer Likes Cisco