Where do you draw the line between investing and gambling? Are speculators truly "investors?" I would consider myself mostlyba conservative investor. I like bonds and ETF's, I even understand using options as leverage in a market sector you have expertise and know trends in. But I don't understand how anyone who claims to be prudent with money could think it's a good idea to short options on futures, sell naked calls or toss their money into things like weather derivatives.
I mean, you make bets, you hope you're right more than you're wrong.
It's like blackjack- most people are wrong 51% of the time. Some people know how to count cards- we're the ones that aren't gambeling..
And just like black jack, lots of people read about card counting, and think 'shit I can do that' and then they fuck it up and lose money because it's not as easy as it sounds
>Are speculators truly "investors?"
Sort of but not really.
Also "investing" in already established enterprises by purchasing shares off another shareholder is hardly investing, really. Anything that doesn't directly give your chosen enterprise some more funds/resources to play with is automatically not real investment imo.
I think the word "investing" has the connotation of any situation where you temporarily make your money less liquid for the chance of having more liquid money in the future. In a literal sense, you're probably right.
>The meaning "use money to produce profit" first attested 1610s in connection with the East Indies trade
Seems I may be wrong, though I do still think that the distinction I brought up has merit.
>Speculators play one of four primary roles in financial markets, along with hedgers who engage in transactions to offset some other pre-existing risk, arbitrageurs who seek to profit from situations where fungible instruments trade at different prices in different market segments, and investors who seek profit through long-term ownership of an instrument's underlying attributes.
Here we go