The Complexity of Investment Layers

Investing operates on multiple layers, each representing different time frames and risk levels. The first layer focuses on very short-term trades, akin to the unpredictable movements of a cricket, with high-risk strategies such as options and futures trading. This layer often yields negative expected returns due to the steep costs associated with frequent transactions, making it a challenging area for individual investors. In contrast, longer-term speculation, or layer two, involves investments in assets like cryptocurrencies and commodities, where profits depend on market perceptions and can resemble the uncertainty of hunting or fishing.