Mad Money

Knowing When to Go Long


Cramer has this rule: Never turn a trade into an investment. That means investors should trust the short-term thesis that attracted them to a stock in the first place. Because often times hanging on too long will cost them money.

The opposite is true as well. You shouldn’t bail on long-term returns just because the share price jumped a few points. As Cramer has always said – trust your thesis. It could mean the difference between five bucks and fifty.

This very thing happened to Cramer’s charitable trust when it once abandoned Apple too soon. Watch the video for the full story.

When this story published, Cramer's charitable trust owned Apple.

Call Cramer: 1-800-743-CNBC

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