Trading : A game of speculation challenges

The game of speculation is one of the fascinating game in the world to me. It is not game for the stupid, the mentally lazy, the man of inferior emotional balance or for the get quick rich adventurer. Those were the wise word of Jesse Livermore.

What is speculation?

To me speculation is nothing more then anticipating on the next movement in the markets. When you buy a stock because you believe that stock will go up in price. So may consider that as investing in stocks but basically you are speculating.

Speculating can be a very lucrative business but you do also have the risk of losing money



To invest or speculate succesfully, one must form an opinion as to what the next move of importance will be in a given stock, forex or any other markets.
For anticipating correctly on the next move you must have a strong definitive basis for that anticipation. To have a strong basis you need to have info that you got from your trading journal.
But always remember to be careful because people are not predictable , they are full of emotion. And the markets are made of people.

A good speculator always wait and have patience till the markets have confirmed their judgement. And then they started to enter the market.
Always wait until the market action confirms your speculation before you act!

You can speculate that the markets go up , sideways or down.
When the markets goes down and you want to make money of the downfall. There many instruments to use to benefit from the markets downfall.
One of the most well known instrument is shorting on the markets.
On the Plus500 platform you can short stocks really easy! Just press on the button short. Look at picture of my account.

As you can see speculating in the market or markets is very challenging. Because it gets your emotions involved. For example the profits are high by greed you will take it out of the market to soon. And once you trade is showing losses you don't want to take it out of the market, because you hope that it will recover.  Well let me tell you something most of the times the losses on a trade don't recover.
I always remember this quote : Profits always takes care of themselves and losses never do!

ps:

If you are unhappy with your broker or trading platform at the moment? Give Plus500 a try and receive a nice welcome bonus.

For now then have a good trading week!