Jim Cramer, prolific author and host of CNBC’s “Mad Money,” didn’t publish several books or get signed to a major television network without knowing a thing or two—or five—about investing in in the stock market. Here are five of Jim Cramer’s best stock tips.

1 – DON’T DO EVERYTHING AT ONCE

In his book Real Money: Sane Investing in an Insane World, Cramer advises the reader, “Never buy all at once. Never sell all at once. Stage your buys. Work your orders. Try to get the best price over time.”

Keyword here: time.

Since the market fluctuates at different times and in different places, it’s best to spread out your investment activity. Rather than buying or selling all of your assets at one time, it’s more prudent to make incremental decisions. As the market changes across all sectors, choices should be made in smaller, more prudent doses, thereby better protecting your portfolio.  

2 – DIVERSIFY

On his hit show “Mad Money,” he told viewers, “Cover all five bases, and you’ll have a portfolio that can win in any market.” The five bases he was referring to: (1) stocks from a healthy geography, (2) speculative stocks, (3) growth stocks, (4) high-yield dividend-paying stocks, and (5) gold. He argued that by diversifying your portfolio evenly across these five areas your investment is likely to be profitable in spite of market downturns. If any of these areas experience a drop, it represents roughly 20% of your total portfolio. Diversification provides a financial safety net because losses in one area can be offset by gains in another.

In other words, don’t put all of your eggs in one basket.

3 – DON’T PANIC

“There will always be a better time to go, a better time to leave the table than the one brought on by panic,” Cramer writes.

Essentially, what he’s referring to here is the fact that fluctuations in the market are normal, and are not necessarily cause for alarm. Finding out that one of your stocks dropped 5-10% all of a sudden is not a good enough reason to sell (unless it’s part of a continuous downward trend).

Up and downs represent natural market behavior. Having faith in your well-chosen investments will typically pay off in the long-run since the market generally tends upwards.

4 – MINIMIZE SPENDING

Cramer told his viewers, “You can make a fortune in the market, but if you’re hemorrhaging money everywhere else, then a healthy portfolio isn’t going to do you much good.” Saving your money can come from a variety of methods, from seeking out discount brokerages that offer lower commission fees, to simply being smarter with your discretionary income.

The stock market does not offer the same security as your savings account, and without market-proof financial resources, you may be leaving yourself vulnerable.

5 – LIMIT YOUR PORTFOLIO

Another tidbit from Real Money: Sane Investing in an Insane World: “I realized that good performance could be directly linked to having fewer positions.” Owning too many stocks makes it too difficult to manage them effectively. Being able to track how your assets are performing and staying up-to-speed on market conditions both become much more difficult when owning too many different stocks.

Maintaining the same number of stocks is also a good rule—selling one old stock for every new one purchased.

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