DaCounselor: I agree that trading and gambling are a helluva lot more fun than investing. Investing takes work!

When I handled that corporate portfolio, approx. 10% was for speculative investments, including CBOT-type stuff (futures, derivatives, etc). The point you make about having a hot streak (and/or a cold one) is very true. I went on a run trading futures (with Florida orange futures, of all things) that was amazing. I was up somewhere around 300% and started thinking I was some kind of financial genius when, as you say, the House asserted itself and promptly kicked my ass earthward again. Great lesson and one I refer to constantly when making financial decisions.

It’s amusing to listen to some self-described “expert” go on and on about gaming the system. The system will eventually eat your lunch, especially if you’re nothing more than a glorified dilettante day trader. And you’re absolutely right about that “entertainment expense”. It can often cost more than your entire portfolio.