What is speculationin the stock market?
（Is it like buying 1000000 shares of a certain stock(which will raise its value)then sell for quick profit?）
Answer ：
speculative trading is not like what you imagine. this type of trading is normally participated by well equipped and experienced traders, who can influence the market; such as george soros.
they look the economy in general, study the statistics and indicators, and took necessary position for their stock or other financial intrument. they’ll gain as much as 1000% if their bet is correct, but will also lose 2500% if not as what they expect.
my advice, stay away from this kind of trading. it is very risky to beginners, cos most of the time, beginners are the victim in the end of the day.
Posted: August 6th, 2010 under US Stock Market.
Tags: speculationin the stock market, spstock market