Investment or speculation, what is the difference?

The difference between investment and speculation is:

First, the length of the time limit of the two acts is different.

It is generally believed that the investment period is longer, and investors are willing to make physical investments or hold for a long time**, while speculation has a shorter period, and speculators are keen to buy and sell quickly on a regular basis;

Second, the focus of their interests is different.

Investors focus on long-term interests, while speculative activities focus on short-term fluctuations in order to seek short-term benefits; Third, the risks they take are not the same.

It is generally believed that the risk of investment is small and the principal is relatively safe, while the risk involved in speculation may be very large, and there is a risk of loss of the principal, so speculation is called "high-risk investment"; Fourth, the two trade in different ways.

Investment is generally a kind of physical delivery transaction, while speculation is often a credit transaction.

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.

What is the difference between investment and speculation?

The differences are: the length of time is different; different focus on interests; different levels of risk; There are different levels of understanding. 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.

Extended Information: Speculative trading refers to the trading behavior in the **market for the purpose of obtaining the profit of the spread. Speculators make a decision to buy or sell according to their judgment of the trend of the market, if this judgment is the same as the trend of the market, the speculator can obtain speculative profits after closing the position; If the judgment is contrary to the ** trend, the speculator bears the speculative loss after closing the position.

Spread speculation refers to the activity of speculators to buy and sell when they think that ** is rising, and then sell or buy the original ** contract when the time is favorable to obtain profits. The key to spread speculation lies in the accuracy of the analysis of the trend of market changes, because there are many factors that affect the changes in the market, especially the accidental factors such as speculative psychology are difficult, therefore, it is difficult to judge correctly, so the risk of this speculation is greater. Arbitrage trading is a special way of speculative trading, which uses the relative difference between different months, different markets and different commodities in the market, and sells different kinds of contracts at the same time to obtain profits.

Just as there are often differences between the spot ** and ** of a commodity, there are also differences in the contract ** changes of the same commodity in different delivery months;There are also differences in the movement of the same commodity on different exchanges. Because of these differences, arbitrage trading in the market is possible.

Arbitrage trading enriches and develops the content of speculative trading, and makes speculation not only limited to the absolute level change of the contract, but also to the relative level change of the contract. Arbitrage trading has a positive significance for the stable development of the market, specifically, the role of arbitrage is mainly manifested in two aspects: on the one hand, arbitrage provides an opportunity for risk hedging;On the other hand, arbitrage contributes to the formation of a reasonable ** level.

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.

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

Further information: Investment refers to the investment of a certain amount of money in the current period with the expectation of a return in the future, and the return should be compensated

1) the time during which the investment funds are occupied;

2) Expected inflation rate.

3) Uncertainty of future earnings. (CFA definition).

The investment activities of enterprises are clearly divided into two categories:

1) Lay the foundation for the expansion of internal reproduction, that is, the purchase and construction of fixed assets.

cash payments for intangible assets and other long-term assets;

2) External expansion, that is, cash paid for external equity and debt.

China Investment Varieties:

1. Real estate. Many people invest in real estate, and a family buys n suites waiting for appreciation.

2. Bonds. Bonds include treasury bonds and financial bonds.

Corporate bonds. This is lower than **, but the return is also low. Compound interest can be selected to calculate interest.

Treasury bonds are not available to many people, and they are known as "gilts" with good reputation, good interest rates and low risk. The risk of financial bonds is relatively high, and the company's bonds have the greatest risk and the highest returns.

3、**。China's ** fell from more than 6,000 in 2008 to more than 2,000 in 2011, and the economy is growing without **rising, PetroChina is so good that its ** is not good, Warren Buffett.

It was a gorgeous exit after making $3.5 billion from PetroChina. Some people say that China's ** is very similar to Japan's, and it will never be able to rise to a high point again, and it will only continue to hover around 3000. Probably with China**.

Powerful forces have something to do with it. It is also related to the psychology of the Chinese people who are afraid of things.

4、***。It has been relatively hot in recent years. "Buying gold in troubled times" in the financial crisis.

In the case of the European debt crisis, too many unstable factors in the world, and China's inflation is relatively strong, many people have turned to the world's common and stable value materials. There are many ** products in the bank, such as **strips, paper**.

**t+d。Many people also do overseas ** through some channels, but it is likely to encounter black platforms, and the money is taken away by the companies that make the platform. The only trading institution recognized in China is the Shanghai Exchange.

5、**。** Refers to a certain amount of funds that are set up for a certain purpose. It mainly includes trust investment, provident fund, insurance, retirement, and various wills. What people usually refer to as ** mainly refers to ** investment **.