Forex Speculation?

Have you ever wondered what is meant by the term speculation?

It seems to be rather loosely defined.

Speculation is the process of selecting investments with high risk in the hopes of making a profit due to price changes. Apparently, if you use that which you purchase, such as consumption of a commodity, or if you purchased something in order to profit from dividends or interest rates, then it isn't speculation.

So, in summary, if you buy a financial instrument in the hopes that you will profit from a change in price, you are speculating. Obviously, forex trading is a form of speculation.

According to Wikipedia, speculators provide a valuable service to markets by adding liquidity. This allows the market to operate with more efficiency and it allows lower spreads between buy and sell prices. Or, in Forex terms, it allows a lower pip spread.

Are you interested in being a forex trader? Look around and read my blog. I write about my trading experiences as a Forex speculator so you can learn from my mistakes -- instead of making them yourself.