What is the difference between forex speculation and forex investment

Investing in foreign exchange is actually a kind of speculation, it can only be said that you are in the control of the risk, most of the investors are in the case of certainty to obtain benefits, and the speculators are different, speculators are more like a kind of gambling, through the best trading to obtain great benefits, and the job of the analyst is to help investors avoid risks by analyzing the disk and fundamentals, so as to amplify the interests and reduce the risks. If you have any questions about this, you can ask me any technical questions.

How can forex be invested, this is completely misleading, only speculation. You have to be an entity to call it an investment. Profits will continue to be generated.

In foreign exchange speculation, the profit and risk are half and half, and if they are trapped, they will not move, which is called investment. is the same as the statement of ** investment, it is all a lie to the people. The merchant said to buy 500 and save 100, do you believe it, that is not to let you save, but to let you spend.

Here's the big difference.

Foreign exchange investment is generally not selected by small investors, foreign exchange investment to the capital to go relatively high, need to hold for a long time, continue to buy low and sell high, the judgment of the future economic situation to be accurate, data information is too huge. Because it can also be shorted, it is extremely risky. Speculation generally refers to a small band, that is, a 3-day trading or intraday T+0

For example, Buffett's insistence on value investment is to look at the undervalued market value and future development potential of listed companies. And those who make profits through the analysis of human nature and fundamentals are speculation. Forex is a speculative market.

There is no essential difference between speculation and investment, the main difference is in the control of time and risk.

In fact, it makes no difference, in the literal sense of the word, speculation is the pursuit of maximum profits, and investment is the expectation of long-term stable returns.

First of all, choose a formal platform, such as Innova under the FCA, etc., if you are a novice, you can learn and simulate through MT4, and then you can enter the real market.

Let's start with the basics of economics.

Of course, all the books are theories, and we still have to learn and apply them.

Is forex trading the same as investing? What's the difference? Broadly speaking, forex trading is similar to investment banking in that the purpose is to achieve wealth growth, but investing is concerned with longer-term wealth growth, the means are buying and holding, and trading is more frequent buying and selling.

There are advantages and disadvantages to trading and shortfalling. Non-professional traders struggle to succeed in trading and should generally act as investors. When investing, you need to understand the big picture. Traders need to focus on detailed technical and fundamental analysis.

Is forex trading an investment or speculation?

First of all, how does forex realize its benefits?

Many people think of trading as the difference in exchange rate changes in the short term, and they always do so this way. I think it's a speculative act. As the saying goes, it's the idea.

Master Livermore realized seventy years ago that trading is speculation, and he divided traders into two types, one is reasonable speculation and the other is irrational speculation. For example, a reasonable speculator knows when to buy, when to sell, clearly, and executes as planned. Not a reasonable speculator, after the purchase, if there is a floating loss, it will change the original investment institution's thinking, keep holding, waiting for the liberation method, from speculation to long-term investment, in fact this is wrong, may cause losses**.

In addition, Wall Street also said that Livermore was a speculative teenager, and his descendants were known as the king of speculation.

What type of real investment is it? Warren Buffett's purchase of the Coca-Cola Company** injects a lot of money into the business, and holding it for decades is a reasonable investment. Reasonable speculation or reasonable investment, which is more beneficial?

Actually, it's done, it's the same for both. Warren Buffett was the first rich man in the world a few years ago, and Livermore, as a representative of speculators, once shook the American commodity market and became the market emperor for a day, and the United States also entrusted his subordinates with mercy.

The act of operating a lot of lists every year is basically speculation, and what we have to do next is how to speculate rationally, cut off the deficit and make the profits run, and adhere to this principle will definitely succeed.

1.The forex market information is highly transparent and fair to everyone. The fundamental news of the foreign exchange market is mainly announced by the countries on time, and everyone accepts the news at the same time, so the information is highly transparent and credible, and it can be said that foreign exchange investment is the fairest investment variety in the world.

2.The volume of foreign exchange trading is huge, and the market is extremely regular.

3.All can be profitable, and the investment method is flexible. Investing in foreign exchange can be both long and short, as long as you judge correctly according to a reasonable trading strategy, you can make a profit in **** or in ****.

In addition, investors can also set automatic take-profit and stop-loss to help lock in profits and control losses.

4.Time can be freely controlled, foreign exchange is a 24-hour uninterrupted trading market, the best time for trading is 8 pm to 24 pm Beijing time.

Foreign exchange is a creditor's right that can be used in the event of a deficit in the balance of payments held by the monetary administration (**bank, monetary management agency, foreign exchange leveling ** and the Ministry of Finance) in the form of bank deposits, treasury bills of the Ministry of Finance, long-term and short-term bonds.

1. Spot trading. Spot trading is the most common method used for speculation.

2. Interspersed with arbitrage. Arbitrage for speculation began to be address arbitrage, that is, before the financial market is not prosperous, the communication methods are not complete, and the global foreign exchange market is not completed, the exchange rate level of different financial centers may be inconsistent, so that speculators can buy a certain amount of money and silver in one place and throw it in another place to make a profit, which is two-point arbitrage, and the more complex ones are triangular arbitrage.

3. Speculation by using other methods of money and silver trading. With the further development of the foreign exchange market and the continuous presentation of financial derivatives, the scale of foreign currency speculation is becoming more and more extensive.

4. Margin trading. Speculators are often short of funds when they engage in speculative trading, and margin trading provides an opportunity for speculators to buy and sell larger with less capital.

There are two ways of foreign exchange speculation, one is to buy first and then sell, and the other is to sell first and then buy to do foreign exchange speculation, and you must choose the right formal platform.

The transaction is guaranteed.