Why is stock trading called speculation?

There is a joke on Wall Street in the United States, which tells that two "speculators" are constantly trading a canned sardine with a package. Every time Party A buys from Party B at a higher price, both parties make a lot of money through repeated transactions. One day, A decided to open the package and have a look: Why is a can of sardines so expensive? And the result surprised him even more: the fish still stinks! He blamed each other for it. B's answer is: canned food is for trading, not for eating! As a result, Party A can only admit that it is unlucky and have nothing to say.

Through this joke, it tells us the profound reason why we want to speculate in stocks, and also shows that this is the relationship between stock prices and the value represented by stocks. Therefore, in the capital market, stocks should reflect the so-called value in the process of speculation, which contains a lot of imagination. The price of stock speculation is not directly proportional to the actual income of listed companies. In the capital market and stock speculation, the probability of each stock being speculated is the same, that is, as long as there is a strong bad stock, it will become a strong stock. Similarly, as long as there are no strong stocks, they will become weak stocks. Speculation is not the intrinsic value of the stock, but whether the main force should have the motive of speculation.

This is why buying and selling is not called buying and selling stocks, but speculation. This is the best explanation. Therefore, the concept of "speculation" should be highlighted when buying and selling stocks. At present, the prices of many blue-chip stocks are not as good as those with poor performance. For example, a large number of blue-chip stocks such as Vanke, Baosteel and Industrial and Commercial Bank of China have fallen beyond recognition. This is not to say that these companies have no investment value, the key is that the main force has no speculative ability, but according to the latest statistics of great wisdom. Take Vanke as an example. In 2007 10, Vanke's highest share price was more than 40 yuan. Under the banner of value investment, the fund has put many retail investors on the mountain. Now the share price has fallen below 7 yuan, and it is still reducing its holdings. Is there a worldwide difference in the price of the same company, but there is no value investment now? This case proves once again that stocks are used for speculation. Moreover, only speculation can put retail investors on high hills and the main force can make big money. Therefore, all the theme concepts, advantages and disadvantages are made by the main force, and they are made for the main force to open positions or ship. Therefore, as an investor, you should have your own judgment criteria and don't fall into the trap of the main force in the process of speculation.