“Never turn a trading mistake into a long-term investment.”

Simplified Meaning:

Imagine you buy a stock, thinking its price will go up. But instead, the price drops. This quote advises not to hold onto that stock for a long time just because you don’t want to admit you made a mistake. It's like if you buy a new outfit thinking it’s fashionable, but when you try it on at home, it doesn't look good. Instead of wearing it over and over just to get your money’s worth, it’s better to return it or give it away. By admitting the mistake and moving on, you can avoid bigger problems later. For example, if you accept that the outfit doesn’t suit you, you’ll look better next time by choosing something different. In investing, recognizing a bad decision quickly means you can sell the stock before its value drops more, saving you money in the long run. So, the advice here is to react swiftly to your errors, learn from them, and avoid letting short-term mistakes affect your long-term plans.