Speculation

Speculation is what most UK retail investors do when they are convinced about the 'special, hot off the press, here today gone tomorrow' offer their broker has called them to pitch...

Remember most of it is absolute bo**ocks. Don't listen and politely (or if your me not so politely) put the phone down. I have no time for these park benchers they cost me a lot.

You have to treat speculation as a seasoned gambler sees going to the casino for a dabble.

Never convince yourself you are investing when you really are speculating. Delusion can be a powerful emotion. Stick to a strategy that works full of confirmation and never deviate from it. Use the same process each and every time. Listen to the best golfer's in the world, their success comes from repetition.

The dangers of speculating become significantly high when you begin to take it seriously. It only leads to disappointment and in extreme cases fraud.

If you really want to 'take a punt', perhaps you have found the next bitcoin (very unlikely) you should have strict controls. The intelligent investor only designates a very small allocation to speculation as they are high risk. Generally 5/10% of portfolio.