Who is a speculator

A lot of people of the post-Soviet countries already understand that we will be talking about the "Bought cheaper - sold at a premium" approach.

It is the speculator, in contradistinction to the investor, who takes a lead from the hottest ideas to maximize profit in the shortest possible time. In any case, he tries to take a lead by:

• Buys what is actively growing. It can grow even more!
• Sells what is falling, panicky disposes shares or opens "short positions."
• Monitors the market every day, reacts violently to news and price fluctuations.
• Actively tracks the price target race from all possible analysts.
• Can check the price of one share every 15 minutes or more.
• Buys shares before the company's quarterly report, hopes that they will become successful after the report (actually playing Russian roulette).
• Participates in many risky transactions, wants to earn tens or even hundreds of percent a year.
• Often acts unsystematically.

So, who is a speculator?

Unfortunately, many newcomers take up speculative sentiment. They constantly look at the already crazy growth of stocks and regret missed opportunities. Heart-in-mouth, they are waiting for new ideas from the screens of financial TV channels and from all kinds of analysts. Sometimes even from the same enthusiastic friends and acquaintances.

Non-systemic speculators who are simply chasing profitability and trying to make money on rate changes can be easily compared to gamblers.

Benjamin Graham noted that there is nothing immoral or illegal in speculation. They are even needed to revitalize the market: increase trading volumes and value of funds risen for companies. It's just that speculation is not profitable for most. And one day they lead the players to ruin.

Being a speculator means:

• Experiencing short-term ups, make a large packet;
• Feel like a financial guru some times;
• Be nervous often. Sooner or later, lose the amounts earned;
• Either gradually become a systemic trader or investor, or leave the market.