However, after doing his homework, the "Mad Money" host concluded that high-frequency traders do just the opposite. He realized that there could be a sharp decline in the market if the high-frequency buyers vanished, and the larger firms then backed away. And that's exactly what happened the day of the Flash Crash—buyers vanished and hundreds of billions of dollars were lost.
The U.S. government has since instituted some trading restrictions, but Cramer said he doesn't know if they really work. That's why he thinks flash crashes could continue to happen.
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Cramer's advice? Individual investors should put limit orders, not market orders, underneath their favorite stocks. And he thinks corporate treasurers should make sure their buybacks have orders at every price down.
Since the government has repeatedly endorsed high-frequency trading, Cramer said, it doesn't matter if it produces no value.
"The fact is it's here to stay. Learn to stop hating it, embrace the madness, and profit from it."
