Friday on Mad Money, Cramer was emphatic about his belief that amateur investors can earn just as much money as professionals. The problem, though, is that amateurs make mistakes that pros just don’t. So he decided to use the show to highlight the five most important things Home Gamers need to know to trade with the best.
First and foremost, pros always have cash on hand. Amateurs, Cramer said, have the tendency to fully invest their money in stocks, leaving no cash in reserve. So when the market takes a dip, putting the best stocks on sale, Wall Street goes shopping, while Home Gamers are left wanting. Cramer recommended having about 10% of a portfolio in cash for just such an occasion.