Investing For You

Investing is not a thing that you may learn in a day or two. Have more patient and best investment results will wait for you ahead!

Thursday, December 15, 2011

Speculation in Securities

Securities are most popular investments that is no doubt about speculation or speculating scale in such investing instruments. Such securities as bonds and stocks are the most popular, however, bonds are not so common case for speculation because of relatively low volatile. 

But stocks are completely different. They fluctuate just greatly and are perfect instrument for speculation. Actually there are few best instruments for speculation: stocks, indices, ETFs, commodities and of course currencies (FOREX) if not to mention most extreme investments as futures and options which can be the most volatile. 

The good thing about speculation is that you may see the results fast enough and there is no need for long waiting to see what will happen. But there is bad thing also, and it is more important than a good thing. The bad thing about speculation in securities (non-financial investments) is that there is not much probable to expect good results that bad results because prices does change very often in negative side and another bad thing is fees. When trades are very often it costs a lot of fees and those can make a damage over longer period. 

Speculation in securities may be fun, but not necessary profitable thing to do. A lot of experience is needed to do that properly. But the funny thing is that the more experience you will have the less attraction for speculation will left in you.

The experience and wisdom investor have the less he is attracted to speculating in securities. Long term investing is more reasonable than jumping through the stocks or derivatives with high costs until money  disappears. Exactly that happens in most cases of speculation over some period, but it is like gambling and hard to forget bad habits.