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I take issue with dumb journalists who blatantly abuse the term "investors". Its not rocket science. If you use margin and/or engage in derivatives, you're no
by traceroute66 6y ago
I take issue with dumb journalists who blatantly abuse the term "investors".
Its not rocket science.
If you use margin and/or engage in derivatives, you're not an investor, you're a speculator.
An investor is someone who has a long-term interest in the market and takes time to make reasoned decisions as to their actions in the markets.
If you're just jumping in and out of the market in the hope of making a quick buck here and there, you're not an investor, you're a speculator.
- boh 6y agoThat's a little nitpick-y. Institutional investors, that make up the bulk of the market, allocate their investments based on a chosen strategy. So even index funds jump "in and out" of markets to balance their portfolios. Stock trading is speculative by default--no one knows the future.
- ketamine__ 6y agoBut how often do institutional investors sell all their holdings of a security in one go? Sure there is rebalancing but that is nothing compared to a RH trader that liquidates his entire position at the end of the day.
- boh 6y agoMore often than you think. Entire funds go in and out of existence constantly.
- ketamine__ 6y agoI'm talking about solvent funds like ARK.
- boh 6y agoARK funds actually have a pretty high turn-over rate.
- ketamine__ 6y agoWhat's an example of a position that they completely liquidated?
- tristanj 6y agoVery much disagree, a speculator can be investor. See the definition of the term on Investopedia. > Speculators are sophisticated investors or traders who purchase assets for short periods of time and employ strategies in order to profit from changes in its price.
- kingofpandora 6y agoThen perhaps we should object based on the adjective sophisticated.