Investor v/s Speculator
1) A person who earns by investing in the economy through a strategic blend of debt and equity instruments is called an investor.
A person who earns by investing in debt and equity instruments with the aim to benefit from the sentiments prevailing in the markets is called a Speculator.
2) For an investor growth is reasonable and steady with occasional volatility causing returns to be less than expected or Returns to be more than expected.
For a Speculator the Returns will always be extremely volatile resulting in either extreme profit or extreme loss.
3) People invest to live a happy life supported by the availability of the right amount of money at the right point in time.
People who speculate do so because they wish to earn huge profits in a very short span of time even though they expose themselves to the risk of huge losses.
4) Investment is driven by the wisdom that they have to be happy in life.
Speculation is driven by greed and that they wish to be extremely rich in life.
5) An investor is interested in fundamental analysis.
A Speculator is interested in Technical Analysis.
