The Money is considered a low risk investment and therefore to use in policies with high risk aversion.
Diversification, the key against all attacks (almost). Whether to retain a single word it is this one: DIVERSIFICATION!
As stated above the proverb fits so well: "Do not put all your eggs in one basket."
Stock market diversification is to invest in different companies, different business sectors, different geographic areas, this allows not only partially undergo a crisis of a business or present in a geographic area.
Take the example of the Internet bubble at the end of year 90:
Case 1: People who invested only in technology stocks could have a portfolio valued at several million at the end of year 90. When the Internet bubble burst, their portfolio has plummeted to a value near zero.
Case 2: People with a partially invested in technology stocks and partly in the so-called traditional values, certainly had a portfolio valued less than the 'case 1', however, when the Internet bubble burst, their investments in traditional societies were allowed to keep a good value of their portfolio (even if the technology stocks that have collapsed, traditional values have continued to grow).
Investing in life is to apply a rule to limit losses due to changing markets. The principle: invest gradually and investing in time.
Financial speculation
Financial speculation is the fact to act in anticipation of market trends. It aims to use the profits in the short to medium term and is applied to all financial markets (equities, currency, commodities ...).
The principle of speculation is the goal of profit by anticipating market trends.
Investors speculation on the current price of a barrel of oil price increase its estimate that more or less important in the near future. They will buy at a price of barrels of oil to be sold at a price B (B> A) a little later.
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