All this talk about bitcoin lately has brought back up the concept of speculating vs. investing. My advice always remains the same: have two buckets. The biggest one is where you don’t speculate at all, but where you invest your money at very safe, very low rates of return. The second smaller bucket is where you speculate all you like, knowing that you might make a lot of money, or may lose all of your cash in that bucket.
Doug Case recently put out an article where he talked about nine “secrets” for successful speculation. They are listed below with my comments.