Cramer’s investment dos and don’ts for this tricky market environment

CNBC’s Jim Cramer on Thursday outlined the pros and cons of investing in the current market environment.

“If you accept your predicament and follow these rules, you have a chance to thrive in this brand new market. However, if you try to stick with what worked last year, the Mad Money host said:” I think you’ll be just as blown away as the people who tried to stick with dreamer internet stocks during the dotcom breakdown. “

The Dow Jones Industrial Average rose nearly 200 points to 32,619.48 on Thursday. The S&P 500 rose 0.52% to 3,909.52 and the Nasdaq Composite rose 0.12% to close at 12,977.68.

This is a difficult situation despite the positive day for stocks, Cramer said, as the market has been on a downward trend for weeks. Whenever the market rolls over, investors go through five stages of grief: denial, anger, negotiation, depression, and finally acceptance.

“We made it to depression now … although the averages made a good recovery this afternoon,” he said. “In this case, many investors tend to raise their hands and forsake the entire asset class.”

Below are his tips to help private investors cope with the current situation:

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