The difference between speculation & investing : vimarsana.c

The difference between speculation & investing
Mediafeed
2/2/2021
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Stock risk concept
All investments carry some risk, but the difference between speculating and investing can illustrate the level of risk involved.
Speculating often describes scenarios when there’s a high chance the investment will deliver losses but also when the investment could result in a high profit. In contrast, investing generally refers to situations when an individual researches an asset and puts money into it with the hope that prices will rise over time a reasonable amount.
The difference between speculating and investing can be nuanced and a matter of opinion. But when traders are speculating, they can wager on higher-risk markets such as cryptocurrencies, commodities or shares of smaller companies. They may use investment tools such as options or futures. Meanwhile, in investing, individuals may buy or hold stabler assets in their 401(k) portfolios or mutual funds.

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