The Difference Between Investing and Speculating (and Why It Matters) - Deepstash
Investing and Speculating
  • Difference between investing and speculation is a matter of risk tolerance, with speculation being closer to gambling.
  • The truth is that there’s no clear cut line between them, as&...

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The Difference Between Investing and Speculating (and Why It Matters)

lifehacker.com

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Investing is a long-term play
  • Investing is most commonly thought of as an attempt to profit on transactions, stocks, or assets.
  • Often, there is a “safety first

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Passive Investing
  • To ensure the highest margin of safety, choose an investment that gives consistent returns.
  • The most conservative investor will

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Warren buffett

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen ...

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Speculation is focused on short-term gains
  • Speculation follows the saying: “With great risk comes great reward”
  • Speculation is the act of putting money into investments that h...

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Speculation is not Gambling
  • Just because speculation carries a higher risk doesn’t mean it’s all gambling, however.
  • The same level of scrut...

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Risk is a spectrum
  • The difference between investing or speculating, is not about what you buy, but why you buy—and that varies for people based on their financial goals.

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Know your risk appetite
  • Know the difference between low-risk and high-risk investments.
  • Knowing your own risk tolerance

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