CNBC's Jim Cramer told investors his key strategies for making successful trades, saying it's most important to start small, have a clear plan of action and only make intentional moves.
"If you're trying to trade, make sure you have a catalyst, an exit point where something's supposed to happen, and then get out of the stock even if the idea doesn't pan out," he said. "Because you're trading, not investing."
He said he knows he doesn't usually teach home-gaming investors how to make trades. Instead, he usually recommends seeking gains from long-term investments, because it's difficult and time consuming to compete against hedge funds — especially when you're only trading part time.
However, Cramer conceded it's worthwhile to know a bit about trading in the digital era where there is so much information about stocks readily available to anyone. Investors can now also make trades without having to pay a broker, he added.
Cramer recalled a big mistake he made in the beginning of his investing career: putting too much money to work at once and losing big. He soon learned he needed to be disciplined, focus on one idea at a time and make his biggest bets only when he had the most conviction.
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