Market speculation

Market speculation involves buying and selling assets like stocks, real estate, or commodities with the goal of making a profit based on predicting future price movements. Speculators analyze market trends, economic indicators, and other factors to estimate whether prices will rise or fall. It carries higher risks than traditional investing because decisions are often driven by expectations rather than the asset’s intrinsic value. While speculation can lead to significant gains, it can also result in losses, especially if market predictions prove wrong. It plays a crucial role in providing liquidity but can also contribute to market volatility.