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Jim Cramer’s guide to investing: The difference between a trade and an investment

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CNBC's Jim Cramer explained how to differentiate between a trade and an investment.

CNBC's Jim Cramer said it's important to understand that a trade is not the same as an investment.CNBC'sTrades are made with short-term goals in mind, while investments are about gains in the long term, he said.

Regardless of whether investors predict the outcome of a catalyst successfully, they should be prepared to sell when the moment has passed, he added.

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