What Is Speculation?

Speculation refers to the trading behavior that makes use of the spreads in the market to make profits from buying and selling. Speculation can be divided into two areas: real economy speculation and virtual economy speculation. Among them, securities speculation is the most abundant and the most complex.

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Speculation refers to the trading behavior based on the judgment of the market, seizing opportunities, and using the spreads in the market to buy and sell to obtain profits. Speculators can "

Speculation can be divided into two areas: real economy speculation and virtual economy speculation. The most connotative and complicated one is undoubtedly securities speculation. It refers to the behavior of people using various professional analysis methods to analyze the information that affects the price fluctuations of securities to study the law of market fluctuations in order to obtain price difference returns.

The speculative nature of China's capital market is not only manifested in the stock market's price-to-earnings ratio is generally as high as 60 times, which is surprisingly higher than the stock market's price-to-earnings ratio in western developed countries (generally 20% -25%);

Under hold

Theories of speculation are mainly

One: The right strategy is an indispensable cornerstone of success

First: The truly practical method is based on a comprehensive understanding of the market and comprehensive research and judgment on all aspects of the market in order to have a high success rate. Starting from a single phenomenon, the result is often wrong, and there are very few effective methods . For example, the entire Dow theory has been officially named for a full 100 years. Although the Dow theory is constantly being improved, the timing of buying and selling has never changed, and there is always only one: "Selling timing Confirmed that it is the date when the railway index and the industrial index broke through the latest correction low of the long market at the same time "; the final confirmation of the buying opportunity," the railway index and the industrial index simultaneously broke through the high of the previous correction of the short market Point, and continue to rise. "There is no other way to judge.

Second: From the frequency of transactions, Dow's theory has only formed 11 buying and selling opportunities in the 60 years from 1897 to 1957. From this we can see that a really effective method is to take absolute care and treat it very carefully.

Third: Many people think that as long as they are proficient in technical analysis, they can be invincible. This idea is very naive. The correct strategy is an indispensable cornerstone of success. Without the correct operating strategy, it is impossible to obtain long-term success.

The right to freedom

In the eyes of most people, the so-called freedom is the right to live freely without being restricted in personal behavior. In fact, the meaning of freedom is far from simple. In real life, the right to freedom is often restricted by various factors. The most important constraint is the lack of money. Without money, it means that freedom is largely lost. .

When we yearn to live in harmony with our family, the distress of life will force us to leave our hometown to earn a meager salary; when we yearn to return to a long-distance home from a distant foreign land, often because of life constraints, we cannot make it; Spend a relaxing weekend together, but give up for a salary to support the family. It's all because of the lack of money that has caused us to lose some freedom. In future life, without money, the degree of freedom lost will be even higher. So to get real freedom, you have to find the best way to get money-that is, to succeed.

What is success? The definition of success is difficult to define. Because everyone knows success differently, but usually there are three kinds of understanding. Most people think that the so-called success means that a person can live in a superior environment, have a diploma, have a successful career, and have a social status, he is called a successful person. Or that a person has achieved his goals in life, no matter what those goals are, whether he wants to be a good teacher or the head of state. Others believe that the meaning of success is to change your own living environment, to have the ability to control your own destiny, and to live at your own will at any time and not follow the flow. Success is usually a feeling, and should not be just recognized by the public. I cannot easily define success because success is often just a feeling. But I think for all people, success is accompanied by independence of money and a comfortable life. There should be no doubt about this. And financial markets can provide us with such an opportunity, as long as we pursue it relentlessly. Sometimes, although there is no great opportunity, personal efforts cannot create great wealth, but we can still make our achievements surpass ordinary people and lead a comfortable life. Big rich is from the sky, small rich is from the people. What we have to do is to gradually improve our own shortcomings when the environment is not good, and wait for the time to come.

In the future, China's stock market is bound to be a vibrant market, a market where opportunities and challenges coexist. As long as we can grasp the laws, we will be able to succeed and obtain the right to pursue freedom.

What is speculation

Speculation is the highest realm of investment. If we take this word apart, in terms of the meaning of a single word, it is also the Xinhua Dictionary's interpretation that "investment" means "very accurate and targeted" It means "be able to adapt quickly to changes in things and be flexible". If we put it all together, it means "being able to seize the opportunity to seize the nature of things that change rapidly". It seems that there is no sense of derogation. The interpretation of the word speculation in English is equally meaningless. In fact, we study day and night, not just to be able to seize the fast-changing opportunities to trade? If this is also your pursuit, I believe you will not care what words are used to describe our pursuit.

Another reason why speculation is misunderstood is that most investors believe that it moves in and out purposelessly in the short-term market. In fact, speculation does not trade in short-term markets, as most people think. In the true classics of the stock market, speculation is all about trading with changes in the intermediate market, not in the short-term market. Only traders will choose short-term prices for trading. To be a true speculator is by no means a simple matter. Only through hard work, a lot of learning to find the essential and inevitable connection in the development of things, and then seize the best time to conduct trading.

Speculation requires the necessary qualities, not just professional knowledge (understanding the inherent nature of stock volatility), it also requires correct investment attitudes, good investment strategies, and how to adjust our inner conflicts and implement established principles Determination. As long as we through hard research, objective analysis, and carefully observe the development of history, speculation will eventually lead us to brilliant success. All the knowledge in this book is what a good speculator should have, and it will guide you to true success. When you really understand the connotation of speculation, you can easily change the role between investment and speculation, speculation is the investment in investment. In other words, it is the ultimate concentration of investment experience.

What is arbitrage? Arbitrage generally refers to the purchase of a lower price and the higher price of a sale in the event that a certain physical asset or financial asset (in the same market or different markets) has two prices, thereby obtaining risk-free returns. Arbitrage refers to actions that profit from correcting abnormal conditions of market prices or yields. Abnormal conditions usually refer to the behavior of significant differences in prices of the same product in different markets, arbitrage, that is, buying low and selling high, causing the price to return to an equilibrium level. Arbitrage usually involves establishing a position in one market or financial instrument and then establishing a position in another market or financial instrument that offsets the previous position. After the price returns to the equilibrium level, all positions can be settled for profit.

Second, the characteristics of arbitrage, more is to do "correct the inherent errors and irrationality of the market, make it return to reasonable", in many cases it is similar to "contrarian" transactions, generally requires a high degree of arbitrage Correlation, that is, both rise and fall, earns relative profits. For example, the recent empty soybean oil is more palm oil, soy oil palm oil has risen and fallen, but palm oil has risen more, this arbitrage makes money.

What is the role of arbitrage?

1, greatly reduce the risk, almost no risk to profit.

2. Conducive to promoting market perfection.

3. Suitable for investors with low risk tolerance and large amount of funds.