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Note: The following episode of Mad Money'was a repeat of a show that first aired on June 19, 2007.

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday August 28.

Cramer's Top Five Investment Tips

Cramer devoted Friday's Mad Money program to discussing five "methods to his madness."

1. Watch the New High List

Many of the stocks that become Cramer's top picks are taken from the new high list. However, he doesn't just copy the list, but waits for the stocks to pull back and does research on the companies. Whether the names are part of a general bull market or are individual companies with merit, the stocks on this list usually go higher, according to Cramer. He warned investors not to wait for just any pullback, but to make sure the stock didn't pull back for a good reason.

2. Insider buying at a 52-Week High

Insider buying of a stock that has reached its 52-week high is a bullish sign, because it shows that investors do not believe there will be a pullback. Although not all insider buying is necessarily worthy of note, and sometimes it can be a confidence game, but when insider buying is "truly colossal," and the stock has already moved, it is time to pay attention.

3. Insider Buying and a Heavy Short Position

Insider buying and a heavy short position is also a sign to invest, because it signals a short squeeze , or a turn of the tide when the shorts start buying to protect themselves. While shorts may be smart, they do not know more about a company than its management, said Cramer,

4. Trading around a Core Position

"Find a stock that you believe will be going higher over the long term," Cramer said. Such stocks may go up and down on market volatility, but are slowly headed up. For those who own 300 shares of a $100 stock as a trade, Cramer recommends selling 50 shares every time the stock rises 3%, shaving some off to bring in profts. Then, as the stock goes down, Cramer suggests buying it back in increments, purchasing 50 shares every time it falls 3%. Cramer urged investors not to own less than 100 shares and not more than 300; "The basic idea is to avoid putting yourself in a position where you have too much on the table in case the stock gets swatted down, or too little on the table to take advantage of any upside that comes your way," he said.

5. The Inevitable Implosion of Hot Stocks

Cramer defines "hot" stocks as small stocks which rise fast, have little research and sparse analyst coverage. The time to jump off the bandwagon is when four analysts are covering the stock. He used Hansen Natural as a hot stock which finally fell last summer after it was covered by its fatal fourth analyst from Goldman Sachs.

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Source: Cramer's Mad Money - Methods to Cramer's Madness (8/28/09)