Try to analyze whether investment is the same as speculation

At a shallow level, there is a big difference between the two: investment creates value, which includes the sweat of workers and the time value generated by money; Speculation does not create value, and money can only flow from some people's pockets to others' pockets, also known as a zero-sum game. Here's an example:

**Exchanges or certain service platforms (providing advice, information, etc.) are investment activities because they provide services and create value to society; Speculation is what is done by speculators (i.e., people who pay out of their pockets to try to make money from the market).

In essence, there is no difference between the two, both are trying to get money out of other people's pockets and into their own pockets, but the probability of success for investors is much higher than that of speculators. Investors do not make profits from their peers, just like hunters——— profits come from their prey, not from one or more other hunters. But speculation is different, their profits come from their peers, the money earned by one trader must be the money lost by another trader, and what I gain must be what you lose.

Speculation is an extremely bizarre industry. In principle, half of the people should win, but only a very small part of the money is won (the success rate of speculation is only 3 in 10,000, and it may be 1 in 10). Why, exactly?

Because successful speculators must be anti-human at all times. And this is precisely what ordinary people cannot understand or do.

Speculation is the loss from another trader, for example, making a profit from the spread is speculation, waiting for the company's dividends is investment, we buy a house and wait for appreciation is speculation, and renting out the house is an investment.

When you wake up in the morning, you think it might rain, so that you don't get wet on the road, and you don't have to worry about getting off work, so you bring an umbrella, and this process is investment;

When you wake up in the morning, you think it might rain, and you don't want to bring more things out to facilitate your movement in order to save trouble, so you don't bring an umbrella, and this process is speculation;

Result: It rains, you invest, it doesn't rain, you speculate.

Investment is a planned process, we will think about the cause and effect, and we will make overall arrangements, while speculation is to play with risks and try luck.

For investment and speculation, it is very difficult to distinguish between a pair of concepts. Some investors believe that long-term holding is investment, and continuous operation is speculation. Many investors think that speculation seems to have a pejorative connotation, which is a misunderstanding.

What exactly is investment and what is speculation? There are many opinions in the economic circles about this, but no one has been able to accurately define and distinguish between them. The more authoritative one is the definition drawn by Graham, the "father of **":

An investment is an operation that has been thoroughly analysed and the principal is safe and has a satisfactory return." On the contrary, what does not coincide is speculation.

The definition of Lao Ge is a bit academic and investors may not be able to fully understand it. To put it simply, Lao Ge means: "investment" and "speculation" are a basic form of market trading activities, and the most basic difference between the two lies in whether you can obtain safe income.

In fact, there is also an element of speculation in investment, and speculation is also a kind of investment. It's just that the former emphasizes the benefits of safety, while the latter pays more attention to investment opportunities and pursues high risk and high returns.

1. The motive is different One is to obtain normal profits, and the other is to obtain huge profits.

2. Direct investment in long-term projects - to create social value, and a short-term investment - generally does not create any social value.

3. Capital**, investment mainly relies on self-raising, speculation relies on a large amount of borrowing.

4. The investment risk is relatively small and the speculation is large.

5. The amount of investment is small and the speculation is large.

6. Investment has little impact on economic fluctuations, and speculation may become the source of bubble economy and economic crisis.

In the same way, investment is responsible for the capital, so that the capital can grow steadily under the condition of safety, and speculation is the investment of costs and opportunities, and the risk is relatively high.

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.