If I had to point out the most dangerous derivative in the world, without hesitation, I would say it is the contracts in the cryptocurrency space. How dangerous is it? I am already quite skilled at leveraged trading, to the extent that going back to stocks feels more difficult, yet even I would never touch cryptocurrency contracts. Because the leverage is beyond a reasonable and orderly range.

Once leverage shakes hands with chaotic fluctuations, the trading arena becomes a full-fledged casino.

There are no educational requirements at the casino's door. Gambling nature is the spear of human nature, easily piercing through the cloaks of higher education. Graduate students from prestigious universities like 985 and 211 lack the ability to assess risks, let alone manage them. Unfortunately, the overlap of KOLs in this circle with idols from the 1985-2000 generation, such as Jay Chou and Li Xiaolai, does not set a good example for young people, but rather attracts many fans into the casino's door.

For those without a financial background, to play derivatives well, one must first understand trade/market. At this stage, one can look at the Dow Jones Index, which is a standardized and highly liquid index that can help you understand what trading is. There are many interpretations of it, and you can find entry points for observation based on your industry and work. Alternatively, you can also choose the S&P 500, S&P 100, or Russell 1000. The purpose of this step is to understand unleveraged trading.

The second step is to understand leveraged forward trading by looking at crude oil. This adds a concept of time pricing to the first step. In other aspects, it remains the same, because there are many influencing factors, and since 2024, the weight of industry supply and demand affecting its price has declined, while the financial and macro attributes have increased, making it easier for outsiders to observe and think.

The third step is to understand options trading, which can be observed through the options of Tesla, Meta, and Nvidia. Here, instead of looking at the options of the indices from the first step, it is better to switch to U.S. stocks and commodities, or ETF options within ETP options. This step is very difficult, particularly in terms of cognition, as many believe options are only for high-IQ individuals or are just ethereal lottery tickets. The investment education in Chinese is poorly done, to say the least. Most people even misunderstand futures, let alone options. In fact, options are the best risk management tool, particularly elegant, old money old school. Of course, the prerequisite is that you must know how to use them.#美国加征关税 #币安Alpha上新 #Strategy增持比特币