Edge, separating work and play


Between the trader and speculator, in a sense, can not be equated. A trader works on the investment company or a bank to give them a salary. Speculator only self serving or group of investors, to whom he is responsible for the money entrusted to him.

Kayak across the ocean

I - speculator. Speculator. Albeit small, but a speculator. I make my living speculating on the stock exchange, and advice on financial investments. There are also currency speculators. And, of course, also all sizes. But there are traders. I've never been a trader. Between traders and currency speculators can not be equated. On the difference between them can be seen in the epigraph to this article. These are the words of man, who was working in the middle of Wall Street, including professional traders. And he very clearly noticed that distinguishes the trader from the speculator. Trader - employee. He is working on "uncle" - an investment company or a bank with significant financial resources. Speculator only self serving or group of investors, to whom he is responsible for the money entrusted to him. He acts at his own risk. And the margin of safety with him, with few exceptions, is very small. If someone did not understand what the difference is, let me make an analogy, which is usually used in my seminars. You can cross the ocean on a kayak. However, make it extremely difficult, although the French doctor Alain Bombard proved that opportunity, and a few times. And you can get across the ocean to the "Titanic", which is much easier and more comfortable. Of course, sometimes the "Titanic" go to the bottom, but this is much less common than drowning kayak, attempting to cross an ocean.

This is the difference between traders and speculators - the first sailing on the "Titanic", and the second kayak. And the second is much more difficult.

Pop down from the bell tower ...

Looks like Elder [1] I've read that he knew a guy who successfully traded in the market, as employees of large investment institution, but once went to "free flight" on their money - immediately "flew." It is strange that a psychologist Elder saw the reason for this in the best technical osnaschennocti corporate offices - in comparison to the fact that these guys are able to organize your home. On my view, they were traders in the sense described above, not speculators, like himself, Mr. Elder, unbeaten Trading for their money. And those guys are traded on foreign (corporate) money are also very large. Speculation - just an economic term that refers to capitalize on the difference in the price of the goods in time. No more. Strictly speaking, any trader is a speculator, but speculation in the financial market can be rotated much faster and more efficiently. In any textbook economics provides a detailed analysis of the economic role and the need for speculators. But is not the point. I would like to set the line that separates work and play speculator. Ultimately goal speculator is simple - win or earn the most money. Consequently, earned them the means are the measure of its success. And in this effort, obviously, there are two components - the work and success as an integral part of the game. However, it is not clear which came first in the tandem - Work or Play. That is determined by whether success speculator just luck (bad luck), or it (success) is the fruit of continuous hard work.