Speculation differs from investment as the speculator quickly gets in and out of the market (buying & selling) based on an accumulated experience about the market and more ability to analyze the impact of information on prices. Speculators focus on achieving the greatest possible amount of instant profits which are usually accompanied by the higher risks that may expose them to big losses.
It is, therefore, useful for most traders especially small ones to be cautious of these higher risks that accompany speculations in the market compared to lower risks when adopting a long-term investment behavior. Performance and links it to the economy and business environment to come up with a future picture of the company’s performance and its competitiveness in achieving certain income and capital growth rates.
The speculator, on the other hand, usually depends on technical analysis and personal anticipation taking advantage of the time factor and the speed and frequency of exiting and entering the market when making the buy or sell decision.