Speculator vs Investor
Usually speculator has a shorter time frame which last less than a year and has a higher risk appetite. A dumb speculator treat the market as a gambling ground and his emotion is likely affected by the market movement. Whereas an intelligent speculator has some common traits like; patience, market experience, discipline etc.
Investor generally has an average or lower below average risk profile. he seeks to understand the fundamental of the businesses he invested in and the volatility of the market fluctuation has no impact on his emotions. Investor also has a longer time frame of more than a year and usually they would like to hold their investments for a lifetime as long as the businesses remain in tact and profitable.
Now, should you be a Speculator or an Investor. Certainly most would say Investor!!! However after so many years exploring in the investment arena, Personally i think it would be best if you can be BOTH!
Yes, no doubt speculation is risky like climbing up a mountain conquering the Mount Everest and any losses incurred will set your financial goals backward. However, speculation if done intelligently (with a "green edge" personally I call it) then most risk will be reduced significantly and it will propel your financial goals forward progressively.
Last but not least, be it being a speculator or investor ultimately we need to enjoy whatever we are doing as time wait for no one. One day we will be an old and wise person and when you look back in time, we want to say to ourselves that "hey! I'm glad that I had pursued my interests, my passions and I lived a life worthwhile!"
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