The Art of Smart Speculation This traditional dichotomy of speculation versus investing misses an important distinction, however. It assumes that all speculators are haphazard and undisciplined in making their bets. It ignores the existence of "smart speculation." Like traditional speculation, smart speculation makes a bet on the expectation of short-term gains. But smart speculators make their bets using a highly disciplined approach to decision making. As a smart speculator, you have a laser-like focus on the risks you are taking. You have your stops in place. And you calculate your bet sizes accordingly. Oxford Swing Trader is an example of smart speculation. This fast-paced trading research service focuses on generating short-term gains by betting on stocks and exchange-traded funds. Ideally, it holds these positions between two and 30 days. Crucially, Oxford Swing Trader's recommendations aren't based on random guesses. Instead, they are the product of rigorously back-tested quantitative algorithms. These algorithms identify oversold stocks that are due for a rebound back to their primary upward trend. (For more on swing trading, watch this video.) The quantitative strategy does not mean that all of my Oxford Swing Trader recommendations will pay off. But unlike trading with your gut, the Oxford Swing Trader algorithms help nudge the odds of a successful trade in our favor. And that slight edge can add up to a big difference over time. A Snapshot of Speculative Fervor Today's financial markets are rife with speculation. That makes it even more crucial that beginning investors understand whether they are investors or speculators. After all, the party atmosphere of speculative fervor can reach absurd heights. Consider the case of a former adult film star, Lana Rhoades, which was recently covered by Jason Zweig at The Wall Street Journal. In a recent Instagram photo, the lovely and talented Rhoades poses in a bikini while casually reading Graham's book The Intelligent Investor. (It should be noted that she is doing so with her eyes closed.) Her post, which was "liked" by nearly 1.8 million people, announced that she is promoting a cryptocurrency called PAWGcoin. This altcoin is meant for "those who pay homage to developed posteriors." (The ancient Greeks had a word for such women: callipygian.) PAWGcoin is up roughly 900% since Rhoades began promoting it in early June, according to The Wall Street Journal. So here's a quick quiz: Is PAWGcoin a speculation or an investment? Cryptobulls, please click the button below to chime in. Good investing, Nicholas | 
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