CNBC's Jim Cramer said he knows he usually tells investors to own stocks for the long haul, not trade for gains in the short-term.
But trading around a core position is a basic and useful discipline, he said.
When trading around a core position, investors maintain a long-term investment – the core position – but buy and sell small bits of the investment as the price fluctuates.
But Cramer noted it's imperative that investors keep their core position only if their thesis for owning the stock continues to hold up.
"Contra the image of trading as something that's reckless and irresponsible, trading around a core position is really the height of prudent portfolio adjustment."
Persons:
CNBC's Jim Cramer, Cramer