Speculating is the assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. The term speculation implies that a business or investment risk can be analyzed and measured, and its distinction from the term Investment is one of degree of risk. It differs from gambling, which is based on random outcomes. There is nothing in the act of speculating or investing that suggests holding times, have anything to do with the difference in the degree of risk separating speculation from investing.
In the stock market, when you buy stocks with higher risk believing that its price will go up without taking a detailed analysis then you are considered speculator. For example, you are speculating if you buy shares of XYZ mining company without checking its financial statements or even looking for any current activities by them like delivery of gold or copper or whatever they should be mining and waiting for its price to jump up. It is very risky for a newbie in stocks like me to do speculating as you might lost big money in a short time but you might also gain BIG! As what my friends in Stock Investing Thread in KFAM Forum always say,
TRADE AT YOUR OWN RISK! We do not promote speculating there in the thread, instead our good friends always advise to invest instead of speculate specially for newbies because of the great risk.
So Join ME in Investing in Stocks....
"He who has a bountiful eye will be blessed..." < romer is ayeckanic, ayeckanic is romer > Ayeckanic™