I recently read an interesting definition of speculation by Robinhood investors. With the help of an analogy, it explained that speculation is like investing all your money into a plot of land because you think you will find gold. If it really does have gold, your investment will have a phenomenal pay-off.
But if the plot of land has nothing but weeds and grass, you are staring at a huge loss. So, speculation is when investors put their money into something that is often a long shot, but that could potentially earn them a lot of money.
