Speculation

Speculation involves the buying, holding, and selling of stocks, commodities, futures contract, currencies, collectibles, real estate, or any valuable thing to profit from fluctuations in its price as opposed to buying it for use or for income ( via dividends, rent etc). Speculation or agiotage represents one of three market roles in western financial markets, distinct from hedging and arbitrage.

Type of speculators

Most non-professional traders lose money on speculation, while those that do make money tend to become professional. Occasionally some dramatic event will occur such as the effort of the Hunt brothers to corner the silver market or the currency speculations of George Soros.

Related Topics:
Profession - Hunt brothers - Silver - George Soros

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Many "investors" in the stock market actually speculate, betting on a gain in price: "buy low sell high".

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

In fact, it is hard to differentiate a speculator from an investor. The degree of leverage, the length of holding, and the frequency of operations might offer clues for distinguishing the two roles. But a degree of speculation exists in every investing decision, and even in every life action that ventures to anticipate the future. Speculation (gambling) appears as a very common human trait.

Related Topics:
Life - Gambling

~ ~ ~ ~ ~ ~ ~ ~ ~ ~