"The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the man of inferior emotional balance, or for the get rich quick adventurer. They will die poor", Jesse livermore(1877-1941)
Speculation is a business. It is not the same as gambling. Why?...Let consider this...Stock market, forex, bonds, property and also a business itself is just a medium. It similar with the card games, sports or horse race...you can choose it as a media for gambling. The result is depend on how you do it. As a gambling or a business?
There a lot of people who do common business just as a gambling, they do it without business plan, no protection on their risk. Their orientation is only with the profit and run it as long as they have a gut. For example... In my country, before economic crisis in 1997, we can count by hands how many business spend their cost on assurance. But fortunately, business environment has less risky than financial market. The inventory damage, store burnt out, flood and economic crisis is not frequent occasion. And lack of knowledge and preparation - run it as a gambling - can be solved by friendly environment in running time as learning curve evolved. Unfortunately, we have different story on risky medium as stock market. You can’t run it as a gambling, you will die poor. In high rewards but high risks environment, you must strict with your discipline to run it as a business. You must let some of your profit for minimizing your risk. A trading plan is a must, manage your risk with strict management. You must have sound basic knowledge before you start. You must act as a Marco Polo...must imagine your clear map, your master plan...before you sail, even though with the change of environment, finally you do different way and destination. But you cannot get your dreamland if you don't have a pre-map…a master plan. You must share much of your time to development process. Everything is changing, like on business….and you as a business man must have to evolve also.
Finally i just want to say that, speculation is the hard business...because it has a curse for having more risky environment than any business…but certainly it has a good rewards too. We can illustrate opportunity that speculation offered as a boxing world champion. They can make fabulous money if they do it right and become on the top…but become a world boxing champion is not an easy task. There is a lot of pain and risk (death) till they get there...So when one of their son say that he want to be like his father...they will say, "If you like boxing, you do that...but if you only like the money forget it...there is more less risky job out there, such as a singer and basketball that will bring you to rich...but once again if only you do that with your love."
No pain, no gain!
It is the same as speculation and other business. If you do it as a gambling – just rely on your guts, feeling, “modern fortune teller” and pick your stock as you pick the horse on race – maybe you will be a millionaire in a short time, but not longer from that you will destroy your self.
DO IT AS A BUSINESS!