Earlier this year, shenanigans by Reddit users launched GameStop (GME) actions into the stratosphere, and suddenly everyone was talking about investing.

The GameStop share price still hasn’t come off a roller coaster – in early June, it topped $ 300 for the first time since January – and investors, new and old, are trying to figure out what it all means so that ‘they can use the lessons to earn money. in the future.

As investment apps like Robinhood democratize the market and make it easier for ordinary Americans to enter the world of stock trading, CNBC Crazy money host Jim Cramer has some important tips for newcomers.

Take a look at Cramer’s list of rules for today’s new generation of app-armed investors.

One good reason to invest

Cramer, one of the world’s most famous stock commentators, used a segment of his show to address Reddit investors at the center of the GameStop situation.

“When things get biblical, you have to be careful,” Cramer said.

“Right now we hear a lot about David vs. Goliath, how new investors have taken on the hedge fund giants, armed with commission-free transactions and more knowledge than ever – the united people will never be defeated.” , he exclaimed sarcastically. before hitting a button that called up a photo of the Wall Street bull.

Cramer acknowledged that Robinhood has revolutionized the world of investing.

“They used a great app and commission-free exchanges to attract 17 million investors. Most of them are new to the game, ”he says. “While they don’t particularly stick with Robinhood, they love stocks. And they’re learning to be better investors and I think that’s great.

But Cramer urged the mass of new investors to reassess their motivations to invest.

“I recognize the appeal of this story, but it’s not a moral piece,” he said. “You don’t stick with the man when you buy GameStop or AMC Entertainment. There’s only one good reason to own stocks – and that is, of course, to make money. “

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Cramer’s 7 Rules for New Investors

Cramer’s skepticism of what he saw as a self-defense investment turned out to be prophetic: As even stock prices plummeted, early-stage Reddit investors lost millions of dollars in their accounts.

He said we are now facing a possible retail revolution in the investment world – but he warned that revolutions often collapse and the old regime persists.

So what does he advise? Putting down the slingshot and picking up his rulebook.

Here are his 7 “rules for revolutionaries”:

1. Put your money in the stocks of companies that are worth increasing over time.

2. Don’t try to eliminate other investors.

3. Find opportunities to capitalize on stock moves motivated by emotional trading.

4. Don’t rely on the government to introduce regulatory changes.

5. Don’t borrow money from brokers to buy stocks.

6. Keep calm, use your head, and follow the corporate earnings reports.

7. Invest in businesses that are doing well but are poised to do better in the future.

Learn to be a better investor

Essentially, Cramer’s message to Reddit / GameStop schmozzle watchers was that while the stock market is now more accessible than ever, thanks to the new generation of apps, you still have to do your homework if you want to see real ones, stable wealth gains in your portfolio.

But Cramer did not deny that there are many great options for newbies in the investment application arena. Robinhood is just the start.

Whether it’s a trading app that lets you buy fractional shares in reputable companies with as little as $ 5, or a micro-investing platform that can automatically invest the currency. From your credit or debit card purchases, these tools can help you learn the fundamentals of investing without unnecessary risk.

They might not net you millions of dollars in a week, but that also means you won’t immediately lose your winnings (and potentially a lot more). Instead, you can expect steady growth in your investments over the long term.

Before long, you will have what Cramer calls the “very high quality problem” of high returns, even if you stick to your revolutionary principles.