Cramer: Find Your Mix of Trading and Investing

Done correctly, there’s not much difference between trading and investing where it counts, “Mad Money” host Jim Cramer said Friday.

“Money is money, but to hear some of the buy-and-hold graybeards talk, the only money worth making is the kind that comes from staid, boring investing,” he said on CNBC. “The fact is, the only difference between trading and investing has to do with your time horizon-trades are positions you hold for a shorter period of time-weeks or months-and investments are positions that you plan on being in for longer-say, a year and a half or more.”

Cramer called the either-or argument a false dichotomy.

“You don’t have to choose between passively sitting on your holdings as an investor, even when you feel like you should really be taking action, or flitting in and out of your holdings on a daily basis as a trader,” he said. “You can do both, you can do either, or you can find a happy medium.”

Cramer urged a disciplined approach and constant homework, “and I think you'll do better than just about any mutual fund, ETF or hedge fund you could have at your disposal.”

“Only those who are trying to manage your money for themselves and their many minions would vociferously disagree,” he said.

Related Long-Term Investment Advice:

• Cramer: Long-Term Investing Requires Focus
• Cramer: How to Buy Stocks at the Right Price
• Know Your Stock’s Sell-By Date, Cramer Says
• Cramer: ‘Most Company 401(k) Plans Stink’
• Cramer’s Tips for Spotting Secular Growth

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