Speculation in capital markets has been given a bad name for years, probably because of the risks & pressure involved. Many have come and gone in this industry over the past few years, some left with unimaginable wealth, while some left with nothing in the bank account. Sure, speculation is very risky, and can be considered one of the riskiest skill, because not only it involves money, but also emotions. Fear of losing wealth and the greed of making wealth is what drives the people and as a result, the markets.
Being a foreign exchange trader for a few months, I realize that speculation is truly a key to wealth control. As compared to a 9-5 job, u won’t have to wait for the end of the month to get your pay & unlike brokerage jobs, the wealth isn’t limited to the sales. It’s all about money management and trading strategy.
Speculation is a life-changer, in a positive way, only if we practice two skills:
Many people have succeeded in trading, because they mastered these two skills, through trial & error, through mistakes and consequences, and they learned it the hard way, but never gave up on their dreams & goals, as the Great Henry Ford once said, “Obstacles are those frightful things you see when you take your eyes off your goal.” Never giving up is the only key to winning.
Knowing when to get into the market & when to get out, when to bet big & when to bet small is the key to long term success in trading. One can get financially independent, only if one knows how to manage emotions in a bull/bear market, and how many lots to trade in a volatile market.
Speculation is surely risky, and as people say it is indeed a form of gambling, but learning from your own mistakes and the persistence to keep going, is the only key to long term prosperity.