What are the differences between traders, speculators, punters and gamblers?
Many people are confused and equate these 4 types of market players together. For me, there are differences. Traders enter positions after a thorough analysis and substantiated by sound reasonings based on proven methods and application of tools. Speculators and punters are similar. They spot the big movers and most volatile stocks to play, based largely on momentum and liquidity. Gamblers are market players who enter on any stock without much knowledge and method. They usually rely on tips and rumors, are highly leveraged and have little holding power. The most important factor that determines success and failure in all 4, is risk (or loss) control. If any of them is able to do that successfully, then even gamblers can make good money from the market consistently.
