Speculating is not Investing

Speculation is what make up the financial market today. Speculation is a scheme on predicting what might happen tomorrow basis on what information that get today. Speculation has become dramatic than ever throughout the history of mankind than ever, thanks to the overload information technology that break the wall of geographical limitation for information to spread. Rumors, opinion and facts becoming more ambiguous. It draw people to confuse what they are actually doing in the market - speculating or investing. Unfortunately, most of the average investor thought there are the same thing.

Speculation is by means betting on something to happen in future based on opinions and rumors. It a merely a guessing game tactic that used by most speculator for the financial gain in the market. The scheme have no real control mechanism involved. It therefore, rely in the reaction of external force toward their guessing game. It is no more different in betting on Craps table in Vegas. On the contrary, investing involve gathering, analyze, and filtering data from reliable sources. They using their knowledge to differentiate between facts and data. They understand they could not predict the future. They are on the scheme of developing a strategy to be prepare in what might happen in future. They are in using a sophisticated strategy to hedge again the drawback of market force, while preserving the advantage position to gain financially. They weight against reward and risks and allocate their resources wisely, unemotionally. It is more like a boring mechanical formula that do not involve any gut instinct to act upon. It a calculated financial profiling of the market trend. More often, it take years of practice and experience before an individual can become a sophisticated investor. There are no overnight expert when come to investing.

By being able to understand the meaning of word, an investor are able to act more rationally to gain his or her place in the volatile market place. It is very important, especially in today market, any changes are happening in the fastest pace that we never encounter before.