The amount of retail investors and in particular those under 30, that I've heard of that have gone broke over the past four months in particular and who are making horrible decisions trading options and crypto products is terrifying!
People are maxing out their credit cards or taking out personal loans to frequently buy high risk and low return investments! Selling options on volatility products where they leave themselves open to losing their life savings in the event of a serious event, COVID, GFC, etc. I could go on and on. I spend a lot of time on Reddit and see comments regularly like, "Help I went all in with my retirement money on TSLA 0DTE options and lost 70%, what should I do?" or "I bought BTC at $60k and then sold it at $35k when it crashed. Should I try again? The exchange has a good deal on margin and I heard BTC is going to a $1M!" I truly feel sorry for these people. The most terrifying thing is most of them have no clue of the risks they've exposed themselves to. It's not like these people are Bill Hwang, who knew exactly the leverage he was taking on and what he was doing (even if we skip the illegal angle). I'm not a big fan of regulations, but something has to be done. When the next 2000-2002 or 2007-2009 crash happen, there will be so many retail investors who've just started in the past two years losing it all. They thing investing is the same as sitting down at the roulette table and the companies/promoters/pumpers are pushing options and crypto on them continually to take their money.
Aaron Jones Comment On Regulatory Notice 22-08
The amount of retail investors and in particular those under 30, that I've heard of that have gone broke over the past four months in particular and who are making horrible decisions trading options and crypto products is terrifying!
People are maxing out their credit cards or taking out personal loans to frequently buy high risk and low return investments! Selling options on volatility products where they leave themselves open to losing their life savings in the event of a serious event, COVID, GFC, etc. I could go on and on. I spend a lot of time on Reddit and see comments regularly like, "Help I went all in with my retirement money on TSLA 0DTE options and lost 70%, what should I do?" or "I bought BTC at $60k and then sold it at $35k when it crashed. Should I try again? The exchange has a good deal on margin and I heard BTC is going to a $1M!" I truly feel sorry for these people. The most terrifying thing is most of them have no clue of the risks they've exposed themselves to. It's not like these people are Bill Hwang, who knew exactly the leverage he was taking on and what he was doing (even if we skip the illegal angle). I'm not a big fan of regulations, but something has to be done. When the next 2000-2002 or 2007-2009 crash happen, there will be so many retail investors who've just started in the past two years losing it all. They thing investing is the same as sitting down at the roulette table and the companies/promoters/pumpers are pushing options and crypto on them continually to take their money.