CONTINUED…

3. Don't be greedy



Cue one of Cramer's best-known aphorisms:

"Bulls make money, bears make money, and greedy pigs get slaughtered."



While this rule applies more loosely for those saving for retirement, investors using their mad money should have some cash on the

sidelines to be able to buy in at lower stock prices, Cramer said.



"These days, the conventional wisdom is that the only real money that ever goes into the stock market is retirement money. That's

supposed to go into index funds and it's never supposed to be touched, no matter what," he said. "I'm not telling you to mess with your

401(k), but if you do own individual stocks in your discretionary portfolio ... I'm saying take something off the table!"

4. Don't fall in love



Cramer has tried to explain Rule No. 4 — don't fall in love with your investments — to cryptocurrency buyers time and time again.



"I fear for my life whenever I use the words '

bitcoin

' and 'sell' in the same sentence," the "Mad Money" host said. "Still, the

darned thing is

in free-fall

and the cryptomaniacs aren't doing themselves any favors by getting so attached emotionally to it."



Instead, Cramer recommended investors stay humble, stay on top of their investments and, most of all,

stay detached.

5. Stay diversified



Finally, different areas of the market may have their heydays at different times, which is why investors must stay diversified, Cramer said.



For example, after the market reversed earlier this year, the drug and health insurance stocks were still able to log strong gains. But the

industrial stocks, red-hot in May, were taken down along with 1-2 week's other winners, the oil and retail names.