Quote:
Originally Posted by IliketoPuck
So, short term speculation then.
|
No not at all. It's actually the opposite of speculation. For example, if you "understand the management team" of 1000 different companies, can you tell me how many of those companies will yield successful trades? And what will your average return be? What about your average loss? And what will your risk compared to that return be? Have you tested your reason for buying stocks over a sufficient number of trades to get answers to those questions? Can you formulate those reasons into rules to create a strategy to repeat your results? If not, according to the definition, you are speculating.