What is the difference between investment and speculation?

1.The length of the time limit of the two behaviors is different. Investment is generally long-term holding**, **, etc., the cycle is relatively long, and the speculation time is relatively short, and the buying and selling is relatively rapid.

2.The interests of the two are different, and the risks they take are also different. Investment is in the long-term interest, even if there is a loss in the short term, it will not have much impact on the whole, and the risk is relatively low.

Speculation, on the other hand, focuses on short-term gains, and the impact of the rise and fall of the sale is relatively large, and the risk is relatively large.

3.Investing is buying and selling what you know, while speculation is buying and selling what you don't understand.

To put it simply: the purpose of investing in something is to bring a return on that thing itself in the future.

The purpose of speculating on something is to sell it at the difference in price in the future.

Investment refers to the economic behavior of a specific economic entity that invests a sufficient amount of capital or monetary equivalents in kind into a certain field within a certain period of time in order to obtain income or increase the value of funds in the foreseeable period in the future. It can be divided into physical investment, capital investment and ** investment. The former is to invest money in the enterprise and obtain certain profits through production and operation activities, and the latter is to purchase the ** and corporate bonds issued by the enterprise with currency, and indirectly participate in the profit distribution of the enterprise.

Speculation refers to the trading behavior of taking advantage of the price difference in the market to buy and sell and make a profit. Speculation can be divided into the real economy.

Speculation and the virtual economy.

There are two major fields of speculation, among which the most abundant connotation and the most complex principle is speculation.

Speculation is: Speculation, commodities and foreign exchange buying and selling activities with the expectation of profiting from changes are speculation.

What is the difference between investment and speculation?

Brief introduction on the official website of Blue Ant Financial Technology: 1. All behaviors that can only be obtained through the bid-ask spread are speculation 2, all intraday trading, ** operations, and short selling in ** are speculation 3, speculation in foreign exchange, speculation, speculation in ****, speculation in virtual currencies are all standard speculation.

The essence of investment and speculation is to obtain profits, but the difference between the two is still relatively obvious. They are:

1. The length of time is different.

The investment period is longer. Speculation is for a relatively short period of time and is usually a quick buying and selling.

2. Focus on different interests.

Investing is more focused on long-term benefits, and short-term losses do not affect the overall return. Speculation focuses on short-term interests, and the rise and fall of ** in the short term has a very large impact on speculation.

3. The degree of risk is different.

Due to the long term of investment, investors can diversify their investment management during this period of time, which plays a role in reducing risks. Speculation, on the other hand, is a relatively concentrated high-risk investment behavior, and the possibility of loss is relatively large.

4. Different levels of understanding.

Investment is usually to buy and sell bonds, **, etc., which you know better, while speculation is a follow-up behavior, and you may not know what you buy and sell.

Extended Information: It is important to emphasize that:

1.Investment does not necessarily make money, and speculation does not necessarily lose money. Many people use the results to work backwards, and naturally confuse the two.

Of course, the dominant role of chance in speculation also determines the unsustainability of speculation: because when the goddess of luck comes and when she leaves, no one can ** or control;

2.What may be speculative for some may become an investment for others. For example, **ticket:

Most of the **buying and selling under the premise of incomplete information and insufficient research** are obviously "blind buying", that is, speculation. However, this does not mean that all individuals who buy and sell ** are speculating. This logic can even be extended to gambling:

If a person has a system that can continue to take the lead in gambling, and has a clear probability of winning against others, then for him, gambling will be much less speculative and more invested.

3.The investment and speculation I am discussing here are neutral words, with no praise or disparagement, and no moral judgment. Of course, the vast majority of speculators are much more likely to lose money than they are to make money, and it is not sustainable. Some people are transported by shit.

smashed and made a big vote, but it was often short-lived, and it couldn't stand the test of time at all. There are many such cases in ancient and modern times, both in China and abroad.

4.Distinguishing between investment and speculation is an important part of investors making rational investment decisions. The question that most investors face is:

In fact, I am speculating, but I mistakenly think that I am investing. Due to this misunderstanding, the losses to investors are very serious, so it is important to understand this issue for rational investment.

1. Conceptual differences. Generally speaking, investment should be direct investment, that is, using the funds in hand to directly participate in specific production and operation, and share the profits from the profits. Speculation is based on their own understanding of the market, the situation that will occur, the layout in advance to use the market changes in goods and services to earn the difference, and the sale is made according to market changes.

Speculation is to take advantage of changes in stock prices to buy and sell repeatedly to earn the difference;

2. Difference in income. The income from investment comes from the wealth generated by the investment; The gains from speculation come from the losses of another speculator. If a commodity is expected to be sold at a higher price, no matter what kind of commodity, it can only be classified as speculation;

3. Difference in cycle time. The time period of investment behavior is generally longer. If the holding period is only one year, then the most likely result is great joy or great sorrow (there is a possibility of a big profit or a big loss).

However, if the investment horizon is extended, the scope of investment return will be greatly reduced, and the risk of uncertainty will also be greatly reduced. The investment period is generally more than 5 years.