Enter multiple symbols separated by commas

Market Orders Are for Suckers

Some brokers want to rob you blind, and you’re probably handing them your wallet by placing market orders instead of limit orders, Cramer said.

When you place a market order, you end up buying or selling at the asking or bidding price, depending on which end of the deal you’re on. The guy you’re transacting with, with the help of your broker, who won’t spend the extra few minutes needed to find you a deal, will take what he wants.

A brokerage can also pair your order with someone else’s and get both commissions, albeit at a price that will likely disadvantage one of you, Cramer said. And paying a little more or selling for less can sometimes mean the difference between a profit and a loss.

Limit orders keep you in the driver’s seat by allowing you to set your buy or sell price. Cramer doesn’t see any downside for the trader when using limit orders. If diversification is the only free lunch, limit orders are the only free breakfast in the business, he said.

Bottom Line: The best way to stay in the game is to make sure nobody’s taking advantage of you. Use limit orders, and that shouldn’t happen.

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer

    Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book