If you want to speculate in the stock market, knock yourself out.
Jesse Livermore was a famous speculator about 100 years ago who made several fortunes but also lost several and his ultimate fate was a sad one.
In the 1983 movie Trading Places, characters played by Dan Aykroyd and Eddie Murphy get rich in an elaborate scheme short-selling orange juice futures after they had created a speculative buying frenzy.
Some people can speculate and do well but most can’t.
So, what’s the difference between investing and speculating, and owning a business versus taking a shot at something?
John O’Connell explains in the latest instalment of our Investor Education Investment Series.
How Much Volatility Can You Tolerate? – Part One