Here is an example of how speculating can be seen as pure luck or properly managed use of investment capital. Take a look at the stocks of EFOI and BLDR. One supplies lighting products and the other building materials so they are kind of related to construction. For all of 2014 and a good part of 2015 both stocks did not show much hope of going higher. Their share prices just moved within a small range. Then they both started moving higher in late spring of 2015.
EFOI gave clearer buy signals and fit the pattern for share price action better than BLDR. EFOI's stock price pattern made this a low-risk speculation and as Doug Casey of International Man says, "The best speculation is a low-risk speculation." BLDR had a huge pop in price, too, but it was clearly a gamble, a hunch that it would do so.
By having a plan for your speculating you can sleep easier at night and know that even if your decision was a little too early or late you were not going to wiped out by a volatile market.
Next time I hope have a good stock to follow so you can see my speculation process in action. The markets are a too wild right to give good buy or sell signals.
EFOI gave clearer buy signals and fit the pattern for share price action better than BLDR. EFOI's stock price pattern made this a low-risk speculation and as Doug Casey of International Man says, "The best speculation is a low-risk speculation." BLDR had a huge pop in price, too, but it was clearly a gamble, a hunch that it would do so.
By having a plan for your speculating you can sleep easier at night and know that even if your decision was a little too early or late you were not going to wiped out by a volatile market.
Next time I hope have a good stock to follow so you can see my speculation process in action. The markets are a too wild right to give good buy or sell signals.