“Never turn a trade into an investment.”
— Jim Cramer
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.
