In my definition, speculative means that the prices are moved more by how traders or market participants feel rather by how they rationally think the worth or the value is, which means that in markets that are most speculative, it means that the main drivers of how prices move are more towards emotions rather than rationality. Alright? Frankly, if you ask me, it doesn’t really matter whether it’s speculative or not. Ultimately, it’s that in any market that you look at or any chart that you look at, can you find a certain edge? Okay?
Depending on what your strategy is, whether can you find the edge, whether that market fits the kind of strategy that you’re looking at or not. If the market or most of the instrument in that particular market fits the strategy that you have, then it doesn’t matter whether it is speculative or not. Because, in any case, as a trader, as a price action trader or as a systematic trader, we are speculators in the first place. If the prices of a share are not speculative, then there isn’t going to be any movement, right?
It’s just going to be dead because over the long run, if you look at pure fundamentals, things doesn’t change much. If things are not speculative and it’s purely based on fundamentals then, most of the time, the prices won’t move as quickly as we want to as traders.
Frankly, it doesn’t really matter to me whether it’s speculative or not. Important is whether the particular instrument or the instruments in that particular market has the characteristics of the kind of trading strategy that you’re looking at or not.
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