In the field of cryptocurrency, it has become a 'digital casino' where highly educated, high-income young people gather.
If one were to identify the most dangerous category among all derivatives globally, I would undoubtedly choose cryptocurrency contracts without hesitation. The level of risk is so high that even though I am quite familiar with leveraged trading — so familiar that I find trading stocks comparatively easier — I still would not dare to touch cryptocurrency contracts, simply because their leverage ratios have long exceeded the bounds of orderly reason.
When high leverage meets wild, unregulated volatility, the trading market becomes a complete casino.
Casinos do not care about educational backgrounds; the gambling nature is like a hidden blade in human nature that can easily pierce through the rational armor conferred by higher education. Even graduate students, doctoral students, or graduates from prestigious universities often reveal a lack of risk assessment ability in the cryptocurrency space, not to mention risk control. Unfortunately, many opinion leaders in this circle overlap with idols from the post-85 to post-00 generations, such as Jay Chou and Li Xiaolai. They not only fail to set a positive example but also attract a large number of fans to enter this 'casino'.
For those without a background in finance who wish to navigate derivatives, it might be wise to progress step by step:
Step 1: First, understand the essence of trade, markets, and transactions, starting with the Dow Jones Index. This index is highly standardized and liquid, helping you build a fundamental understanding of trading. Its interpretative content is rich, and you can find a perspective based on your industry and work, focusing on understanding the logic of non-leveraged trading.
Step 2: Learn about leveraged forward trading, with the crude oil market being a good subject of study. Compared to step 1, this step introduces the concept of time pricing, while other logical aspects remain similar. Since 2024, among the factors influencing crude oil prices, the proportion of industry supply and demand has decreased, while the weight of financial and macro attributes has increased, making it easier for outsiders to observe and analyze.
Step 3: Deepen your understanding of options trading, focusing on options from companies like Tesla, Meta, and Nvidia. Be careful to avoid the index options mentioned in step 1, and prioritize options from U.S. stocks, commodities, or ETF options within ETPs. The challenge of this step lies in cognitive breakthroughs; many people think options are exclusive tools for high-IQ individuals or intangible 'financial lotteries'.
