- In my mind, you become a speculator when you start making decisions outside of a well-defined process or don’t have one to begin with.
- If you have no plan, you are speculating. If you’re constantly shooting from the hip to make decisions, you’re a speculator.
- If you’re paralyzed by fear every time the market goes down and you don’t know what to do with your portfolio, that’s a form of speculation.
- The same thing applies when you have no plan for how to handle a bull market (something many investors are grappling with at the moment).
- Without a set of guidelines or principles to follow you’ll be constantly second-guessing every move you make after the fact.
This is mostly a summary from Ben Carlson notes here.
