I have worked in a brokerage house on trading systems and currently in large bank on risk calculations on complex financial products. I cannot understate how i

I have worked in a brokerage house on trading systems and currently in large bank on risk calculations on complex financial products. I cannot understate how important is that people first get to know what they are dealing with when they start investing in anything. Whether you are investing in housing, collectibles or exotic financial products you absolutely have to understand how the thing works. Everybody knows you need to pay close attention when you buy a house because a small detail can make your entire investment a flop. Everybody knows to get expert advice to estimate value of collectibles or spot fakes when you buy for investment. For some unknown to me reason people think the only thing they need to do is to look at nice graphs and try to figure out if the line goes up or down without actually understanding what the product is, how every single option works exactly, and the in-depth situation of the product and its market environment. For you, people, who want to invest your money, please, do not invest in stuff you do not understand. Financial markets are very complex these days and it is unlikely you are going to get valuable insight without treating it as your full time job and even then it is pretty difficult. You are competing with huge corporations employing thousands of bright individuals trying to do the same but without risking their own money. Your fallible mind will get you hooked because it is likely you will get some early wins and it will likely cause you to stop being rational about your market decisions. It is very difficult to be rational when significant portion of your own capital is at stake.