https://www.wsj.com/articles/you-cant-invest-without-trading-you-can-trade-without-investing-11623426213?st=obqdq829m9pxs9w&reflink=article_imessage_share. a trader: someone who buys stocks on a hunch. an investor: study the health of the underlying business and learn who else is betting on or against the shares. a speculator: someone who thinks other people will pay more for it than you did. The word investor comes from the Latin “investire,” to dress in or clothe oneself, surround or envelop. You would never wear clothes without knowing what color they are or what material they’re made of. Likewise, you can’t invest in an asset you know nothing about. Graham said, “Outright speculation is neither illegal, immoral, nor (for most people) fattening to the pocketbook.”. However, he warned, it creates three dangers:. speculating when you think you are investing. speculating seriously instead of as a pastime, when you lack proper knowledge and skill for it. risking more money in speculation than you can afford to lose. If you think you’re investing when you’re speculating, you’ll attribute even momentary success to skill even though luck is the likeliest explanation. PAWGcoin is up roughly 900% since Ms. Rhoades began promoting it in early June, according to Poocoin.io, a website that tracks such digital currencies. In Ms. Rhoades’s Instagram post, she is holding up an open copy of the “The Intelligent Investor,” whose cover is reversed. She appears to be reading it with her eyes closed.