Speculating and investing differ mainly based on the amount of
risk involved. Other differences are :
Investors seek only a satisfactory return on their investment.
But speculators seek abnormal returns.
Investora are not ready to take high risk. Speculators are
ready to take high risk for getting abnormal profits.
Investors put money for a long period of time. Investment is
long term in nature. Speculator put money for a short period.
Speculation is short term in nature.
Speculators put money into assets with volatile prices to take
advantage of downswing and upswing of prices. Investors put money
only in stable assets with less risk.