If you're looking to put money in technology stocks, Jim Cramer thinks there's something you should know.
Many individual investors approach this sector in a way that's unlikely to generate profits.
That is, they treat tech stocks the same way they treat food and beverage stocks or pharma or even the tobacco companies.
"A tech stock like Skyworks Solutions is not the same as a staple like Pepsico. NVIDIA is not Hershey. SanDisk is not General Mills. ARM Holdings is not Altria, and Micron is not McDonald's," Cramer said. "The first half of these pairs, the tech names like Skyworks and Micron, are trading vehicles that can fly and crash. The second half, the Pepsicos and the Altrias, are staples that plod along slowly but surely," he said.
Therefore, strategies that make all the sense in the world for staples often make no sense at all for tech stocks. In fact, they may be downright dangerous.
"In tech you have to think more like a trader. Cramer said. That is, you have to revisit your thesis often. "And you have to be willing to change your mind. Most important, you have to be ready to sell," Cramer said.