“Speculation is the name given to a failed investment and investment is the name given to a successful speculation.”
Edward Chancellor
A good quote expressing the semantics of different terms used by market participants. It doesn’t matter how you call it, we all make a guess about the unknown future when we buy a stock and expect it to appreciate in value. The same applies to whether you call yourself a trader or an investor. Is there really a big difference? I can call myself a trader, speculator or investor, it doesn’t really matter. My goal is to grow assets in the stock market in the best possible way known to me. I believe it limits our ability to think outside the box if we … put ourself in a box! Meaning you define precisely what the industry calls you and what is “allowed” for you to do in the market. Investors hold. Traders use stops. Speculators take high risks. Well, I can hold a stock with a stop that has high risk. See where I’m going with this?! Forget about the vocabulary and industry standards. Think about how the market really works. Then make money.
