Our friends at Casey Research (excellent for metals and macro trends) define an investor as someone that risks 100% of capital for a 10% gain, while a speculator risks 10% of capital for a 100% gain.
We also like Victor Sperandeo's (Trader Vic), the all world trading guru's idea that speculation is a medium term process. As the future is unknowable, it is taking a position anywhere from a few weeks to months, whereby the probability of at least a 3:1 reward to risk proposition is available.
That makes a great deal of sense. Look for something whereby you have a high likely hood of a big gain versus a small risk. Only use a small % of capital per trade or idea.
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