“One of the biggest obstacles to succesful investing is a lack of clarity about just what investing is supposed to mean,” he said. “I have seen countless people try to follow the conventional wisdom about money management, only to have their investments wiped out because the conventional wisdom is wrong. And the worst part is, these people had no idea they were making a mistake — they thought they were being responsible.”
First and foremost, Cramer said, it’s important to remember than long-term investing is not synonymous with simply owning stocks for a long time.
“In other words, don’t confuse being a good investor with the idiotic ideology of buy and hold, or as I skeptically dub it, ‘Buy and forget,’” he said. “Buy and hold has been the conventional wisdom for decades, and this one bad idea has lost people more money than the last two financial crises combined.”