Cramer's 'Mad Money' Recap: Avoid Common Money-Losing Mistakes

Cramer explained that hedge funds, in particular, cannot afford to underperform the markets or their peers. So if a fund is underinvested or is lagging its peers, a broad market decline is just what's needed to get back on track.

Cramer said it would be a wonderful world if everyone was honest. Since that's not the case, it's important to know what to watch out for.

"Always be on guard," said Cramer. "People badmouthing the markets aren't any more honest than those who tout specific stocks."

--Written by Scott Rutt in Washington, D.C.

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.