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What is the difference between investment and speculation?

What's the difference between investment and speculation? Although investment and speculation are essentially the same in order to obtain income, there are still great differences between them:

1. Different duration

Investment usually holds securities and stocks for a long time. The relatively short period of speculation is usually a quick buying and selling behavior.

2. Focus on different interests

Investment pays more attention to long-term income, and short-term losses will not affect the overall income. Speculation focuses on short-term interests, and the rise and fall of prices in the short term has a great influence on speculation.

3. Different degrees of risk

Due to the long investment cycle, diversified investment management can be carried out during this period to reduce risks. Speculation is a high-risk investment behavior, with frequent operations and relatively high possibility of loss.

4. Different levels of understanding

Investment usually involves buying and selling knowledge that you will know better, while speculation is a follow-up behavior, and you may not even know what you are buying and selling.

what's the difference between investment and speculation? On the other hand, the highest level of investment is correct speculation. If the word is taken apart, it is only in the sense of the word, and it is also the explanation of Xinhua Dictionary. Investment is accurate and targeted. Machine means being able to adapt to the changes of things quickly and be flexible. If we integrate it, it means that we can seize the opportunity and grasp the essence of rapidly changing things. There seems to be nothing derogatory. The word speculation has no derogatory meaning in English.

In fact, we keep learning in order to seize the ever-changing trading opportunities. Transparent and purposeful research is a good path.

another reason why speculation is misunderstood is that most investors think it goes in and out aimlessly in the short-term market. In fact, speculation is not traded in the short-term market as most people think. In real stock market classics, speculation is traded in the middle market, not in the short market. Being a real speculator is not a simple matter.

investment refers to an economic activity that sacrifices or gives up the value that can be used for consumption now to gain greater value in the future. Speculation refers to the trading behavior of buying and selling according to the judgment of the market, grasping the opportunity and making use of the price difference in the market to obtain profits.

speculation is also a form of investment, but its benefits and risks are great. At present, a large number of people speculate in the stock market in China, which goes against the core meaning of stock market investment. Investing in stocks should benefit from the operating income of the stock companies they hold, not simply from the changes in stock prices. Futures is a market dominated by speculation.