They're called momentum or momo stocks on Wall Street. Jim Cramer says they can make you a lot of money, but only if you know when to get out.
By momentum stock Cramer means "hot speculative stocks of companies with relatively low market capitalizations."
Now, make no mistake - these stocks are the proverbial deep end of the pool. That is, if you sell too late you'll be the one who gets stuck with a loss," Cramer said. "However, if you sell to soon, you'll miss out on making a great deal of money – and few things are more frustrating than watching a stock you've once held advance by double or even triple digits."
Like all areas of investing, Cramer says the trick is to approach these stocks with discipline. "I'd be afraid to buy them too if I didn't have a discipline that let me know when to get out," Cramer said.
Here's how Cramer does it.