"Never turn a trade into an investment."
Simplified meaning
When you buy something with the intention of selling it quickly for a profit, that is called a trade. However, if things don't go as planned, you might be tempted to hold onto it longer, hoping it will eventually go up in value. This is risky because it turns your short-term move into a long-term commitment, which might not be wise. For example, imagine you bought some trendy shoes to resell for a quick gain, but no one wants to buy them right now. Instead of waiting forever for someone to finally purchase them at the price you want, you might accept a smaller profit or even a small loss and move on to the next opportunity. This helps you avoid potential bigger losses and keeps you flexible and ready to take advantage of new chances to profit.
Related tags
Finance Financial advice Investment Investment strategy Market dynamics Risk management Stock market Trading Trading strategy
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