Are You An Investor, A Gambler Or A Speculator?

Are You An Investor, A Gambler Or A Speculator?


  • Total voters
    12

dameonStar

Junior member
22 0
Are You An Investor, A Gambler Or A Speculator?

It is everybody’s goal to make an investment, to put money into something in the hope that it shall be profitable in the future.

What is investing? Investment has different meanings, In Financial terms, investment is putting money into something with the expectation of gain that upon thorough analysis has a high degree of security for the principal amount, as well as security of return, within an expected period of time. In contrast putting money into something with an expectation of gain without thorough analysis, security of principal, and security of return is gambling.

Putting money into something with an expectation of gain with thorough analysis, without security of principal, and without security of return is speculation.

The million dollar question is, have you been investing, gambling or speculating. Probably you don’t know the answer to that question yet. Most of the successful investors give the answer to this without blinking. Why? They know where they are putting their money, they care to do research and at least understand the risks involved. Most of us put money because we see an opportunity; that’s not enough, in fact it’s risky. Literally throwing money expecting it to bounce back. Lady luck has her bad days too.

They first step after being attracted by the opportunity is to identify and appreciate the risk involved. Look at what you are likely to lose when the spin follows unknown commands.

Are the risks involved too big for you to accommodate?

Is the return good enough to compensate for the amount of risk involved?

These questions answered, then go to the scarcity of the investment you are making. Scarcity can be caused by nature, skill or amount of capital involved. If you invest on something that every Tom **** and Harry can afford, then your chances are very slim. This is because you are forced to share the returns available with everybody else while the returns cannot stretch beyond their optimum level.

How many times have you looked through the doors of a gambling den and felt pity for the gamblers inside? Sad news is all the money you put in any project without analysis, security for your principal, and security of return puts you in the same boat with the gamblers. Be it a shop, piece of land, a degree, an asset …relationship, name them! The silver lining is that even gamblers take home some money, windfalls at times. But do you really want to be a gambler?

Most young people gamble in the name of investing. They want to take risks and yet they don’t know the amount of risk available. Over 50% of all small businesses fail within the first five years. Why do you think this is so?

The good news for young people is that you have time to learn form your mistakes and recover.

If you are a beginner, you will largely increase your chances on investing and avoiding all else until you have money to throw away; however it’s until you take chances (throw money) that your chances of making it big triple. Confusing right? We shall clear up the mist in the coming updates.you wouldn’t be surprise

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timsk

Legendary member
7,604 2,377
Hi dameonStar,
Welcome to T2W.

Correct me if I'm wrong, but I get the distinct impression that you've copied and pasted your post from somewhere else? If it's you're own work that's okay, if it isn't, then please familiarise yourself with Trade2Win Forum Terms & Conditions - especially section 3 regarding intellectual property.
Tim.
 

dameonStar

Junior member
22 0
Hi dameonStar,
Welcome to T2W.

Correct me if I'm wrong, but I get the distinct impression that you've copied and pasted your post from somewhere else? If it's you're own work that's okay, if it isn't, then please familiarise yourself with Trade2Win Forum Terms & Conditions - especially section 3 regarding intellectual property.
Tim.


Hello, Timsk thanks for the compliment....
the fact that it looks too good to be true makes me smile

Well it's original and was my article from the last exam in my forex classes.
I have posted it on another forum and in my school's website....
All rights reserved....

Cheers and thanks!(y)
 

barjon

Legendary member
10,705 1,809


...................What is investing? Investment has different meanings, In Financial terms, investment is putting money into something with the expectation of gain that upon thorough analysis has a high degree of security for the principal amount, as well as security of return, within an expected period of time. In contrast putting money into something with an expectation of gain without thorough analysis, security of principal, and security of return is gambling.................



I don't actually agree with your distinction since I can do all the things you suggest to take a an intraday trade but I would not consider that I am therefore investing.

Mind you, the particular words you might use to describe my activity don't really matter a jot, albeit that they do do conjure up different "emotional" feelings: Investor = respectable, solid, reliable; Speculator = sharp, short term operator; Gambler = fag in the mouth, down at heel loser. :)
 

dameonStar

Junior member
22 0
I don't actually agree with your distinction since I can do all the things you suggest to take a an intraday trade but I would not consider that I am therefore investing.

Mind you, the particular words you might use to describe my activity don't really matter a jot, albeit that they do do conjure up different "emotional" feelings: Investor = respectable, solid, reliable; Speculator = sharp, short term operator; Gambler = fag in the mouth, down at heel loser. :)

Hmmm...Barjon I never take any intra-day trades, I take at least two days of analysis before opening the trade.:).. maybe you could all these intra-day unfortunately I have no idea of how to make intra-day trades..
 

perox

Member
87 0
Hmmm...Barjon I never take any intra-day trades, I take at least two days of analysis before opening the trade.:).. maybe you could all these intra-day unfortunately I have no idea of how to make intra-day trades..


Yeah, deep analysis before trading will give you a better understanding of the market and you can plan everything such as TP & SL levels prior to get in.
 

dameonStar

Junior member
22 0
I got volumes of written down analysis before opening any trades...a max of 5 trades in a week.. harder than it sounds....
 

Jack Francisco

Member
85 1
I better considered myself as a gambler, investor and speculator. Not at the same time but at different times.

* As a stock trader - Investor
*Forex - Speculator
*Casino - Gamble
 

the hare

Senior member
2,949 1,283
Gambler = fag in the mouth, down at heel loser. :)

I'm a gambler but sadly smoking is one of the few vices I don't engage in :) god knows I've tried but I cannot stand the taste of tobacco.

Most of the gamblers I know do quite well.
 

trendie

Legendary member
6,858 1,416
I wonder if the terms are a function of the data available when taking the trade.

If 3 different people take the same trade, is the gambler relying on the least information (gut feel, random entry), the speculator has some information (localised, near-term insight, short-lived patterns) and the investor relying on the most information (fundamental business information, sector information, longer-term view, dividend yields) ?
 

barjon

Legendary member
10,705 1,809
I'm a gambler but sadly smoking is one of the few vices I don't engage in :) god knows I've tried but I cannot stand the taste of tobacco.

Most of the gamblers I know do quite well.

:LOL: aye, but you'll be the first to agree that different words describing pretty much the same thing conjure up dramatically different images........as the marketeers and advertisers well know.
 

dameonStar

Junior member
22 0
I wonder if the terms are a function of the data available when taking the trade.

If 3 different people take the same trade, is the gambler relying on the least information (gut feel, random entry), the speculator has some information (localised, near-term insight, short-lived patterns) and the investor relying on the most information (fundamental business information, sector information, longer-term view, dividend yields) ?

hello trendie, I am honored to see you commenting on this thread(y). The terms are a function of these sets of data that may be available to all people but the differential application and selection, categorizes the traders into the different categories.

Dameon
 
 
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