Jim Cramer's 5 Rules Of Winning Season

CNBC’s Jim Cramer on Tuesday went through a list of do’s and don’ts for investors ahead of a busy earnings streak.

The upcoming earnings season, starting this week, features quarterly updates from the country’s largest banks, manufacturers and airlines.

According to Cramer, here are the five rules investors should keep in mind:

Don’t succumb to instant analysis. Investing is not a time-sensitive act.

The first move is often the wrong move. That means investors shouldn’t make investment decisions solely based on how many companies are performing versus analyst consensus estimates.

Don’t rely on the tape. In other words, investors shouldn’t buy a stock unless they’ve done their homework to research the company themselves.

Read the conference calls carefully. The question and answer part is particularly important as it shows if analysts are really happy with the quarter.

Make a well-informed decision when you buy. Consider whether Wall Street misinterpreted the quarter – which could create a buying opportunity.

Cramer added that a CEO’s willingness to buy back shares after the company reported earnings is another sign investors should buy the stock themselves.

Above all, investors need to be careful and measured, he said. “This is a turtle-and-the-rabbit situation, so take it slow.”

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