The answer to this question is very important. You need to define who you are, or who you want to be. Be warned there are some pitfalls.
What is the real difference between the two types then?
A Speculator hopes to quickly profit from something that might appreciate in value a lot (or lose value a lot) with a very uncertain probability.
Conversely, what I call an Investor is a disciplined speculator.
In finance nothing is certain and the dynamic of markets, both micro and macro, are driven by so many forces that it is impossible to forecast any movements with high precision. Therefore the common theme is uncertainty. And where there is uncertainty there is a "hope" factor at play and both the speculator and the investor are aware of it. The difference is in the degree of the "hope" factor factored into their decisions.
The higher the degree, the more a Speculator you are.
So when does "hope" run lower? It is when you research and study in depth the thing you are investing in! The more questions you ask about the thing you are buying (or short selling) and the more research you do, the better the quality of your decisions. The better the results.
In general, being a consistent speculator is not a good thing, as poorly-researched buying & selling decisions will erode your capital over time. You will ultimately pay the price and might risk to destroy any value you have created so far.
Moreover, a dangerous trap of a typical speculator is becoming enamoured to quick profits generated via tremendously lucky trading decisions. Imagine you have chosen the path of the speculator, you might ultimately end up reaching a level of overconfidence (and greed) that will prompt you to build up a big (and very risky) portfolio position that will blow everything up. Game over. Start all over again.
What is then a better alternative? Becoming an investor! An investor has higher chances of becoming more financially successful than a speculator, as diligence, curiosity and work will pay off over time. The odds will be in your favour. However it's is just not hard work that will make an investor better off than a speculator in the long run. Another ingredient is at play: Persistence.
Investing is a state of mind. A speculator will give up at the first sign of failure. His beliefs will be shaken by the forces of the market and will likely crumble like a sand castle, causing irreversible portfolio damage. On the contrary, the investor beliefs will require a more powerful financial earthquake to make him reassess his position and take due action.
Put it in another way, speculators and investors can be related to the two types of gym-goers. The one who goes to the gym just 3 months before summer to look good for 3 months during summer, and the one that goes to the gym 3 times a week, 52 weeks a year to pursue a healthy life. The action is the same, going to the gym, but the mindset is totally different. One is a temporary, the other is a lifestyle decision. It's like a diet, you should diet your entire life, not just before a wedding.
Having said all of the above, it is also good to have a speculative component in your investing approach as this will likely spice up your returns and give you an open-minded approach to investing. You need to try new things and experiment yourself.
There are indeed several theories that suggest to build your portfolio with a "barbell" approach: i.e. a Barbell Portfolio. A Barbell portfolio consists of building a core portfolio with 95-99% exposure to "ok" stuff (Equities, Bonds, Commodities, etc.) and 1-5% exposure to "super risky" stuff (derivatives, exotic instruments, new financial technologies, levered cryptocurrencies etc.).
The end result will be more juicy returns over the long term. As a matter of fact the 1 to 5%, if goes well, will give you 2x, 3x, 10x return which will make a difference to your overall portfolio return. And once/if you achieve that, repeat.
Now that you know the difference between financial success and ruin, make sure the journey to your wealth is duly rewarded. Become an Investor, with a speculator twist.
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