We usually hate those speculators and think that speculators must be bad. But in the financial field, it takes a certain level to be an excellent speculator.

investment

First of all, let's understand the concepts of investment and speculation. From the process of investment, investment refers to the process of converting money into capital.

speculate

Speculation refers to the trading behavior of buying and selling by taking advantage of the price difference in the market according to the judgment of the market and obtaining profits from it. Speculators can even sell short. Therefore, we also say that speculation is an investment opportunity. If there is no chance, you will not enter the market to trade. It can be said that this is a short-term spread profit, but the risk is also great.

investment

Generally speaking, holding something in the market for a certain period of time is called investment. For example, if you buy Gree Electric stocks for two years and invest for a long time, you can sell them at a high price and enjoy dividends. And some speculators get rich overnight, and some go bankrupt once.

fund

So we say that the main difference between speculation and investment is that the purpose of speculation is to obtain short-term spreads, and the purpose of investment is to obtain principal guarantee, capital appreciation and recurrent income.

Are you an investor or a speculator?