And if you find yourself enjoying the activity of investing or if you find yourself addicted to the speed and excitement of the trading game, perhaps you should seriously consider whether you've crossed the line between investing and speculation, or worse yet, maybe you are really gambling with your money. A prospect that has a zero risk premium is called a fair game. Investors that are risk-averse reject investment portfolios that are fair games or worse. It would seem the difference between investment and speculation is not very clear in the minds of most market participants. We have no idea what will happen to the market. . .
Speculation is an effort, probably unsuccessful, to turn a little money into a lot.
Investment is an effort, which should be successful, to prevent a lot of money from becoming a little. Games of chance must be distinguished from games in which skill makes a difference. The principles that work in roulette , dice, and slot machines are identical, but they explain only part of what is involved in poker, betting on the horses, and backgammon. There are cardplayers and racetrack bettors who are genuine professionals, but no one makes a successful profession out of Craps . Many observes consider the stock market itself little more than a gambling casino . . .