Believing that the government should restrict access to guns has nothing to do with being "babied and coddled by people in power" and everything to do with not wanting to be shot by someone else.
I do feel that a lot of the restrictions on amateur trader have the effect of barring "normal" people from making some of the best investments. I ought to be allowed to fail like the best of them. the catch here is that I don't bear all the risk if I fail. if I lose everything on a stupid trade, I am entitled to lean on my fellow taxpayers for support. some balance needs to be struck between allowing me to fail and requiring other people to pick me back up if I do.
The negative externalies of investment losses are costs to the public safety net, political distraction and the risk of a public bail out if the losses hit critical voting blocks.
You cannot be trusted with margin / options if you haven't proven that you know the risks. If I were a broker, I wouldn't let you trade if you wouldn't be able to cover a loss on options - I'm sure brokers have been defrauded before by people just disappearing or going bankrupt.
You can't play with millions if all you have to your name is a $600 stimulus check and a sock of rainy day money. That's irresponsible.
Stick to what you can afford and what you know about.
Nice powertrip. My turn.
I am a CFA w/ a Series 6/7/63 that has degree in Finance/Accounting/Stats and has written automated trading bots.
This was NOT enough experience for Fidelity to let me trade options (ironically, after I traded options for their clients working for them for 2 years in my youth), but my friend who listed no experience and a high net worth got margin and options trading enabled in his account.
There is a VERY fine line between "for your own protection" and "so that people who already have resources have more options."
Yes, there are gambles that can give great returns if you're lucky. And may even make sense as part of a diversified portfolio. That's the idea with VC of course. Though VC returns aren't actually that great in general.
Where I at least part ways is the people here who argue vehemently that there should be no line given that people can go to Vegas and gamble away their life savings. And, as I say, I don't actually think people are missing out on fantastic opportunities for unsophisticated small-time investors that they think they are.
For example - brokerages keep you from trading on margin unless you have x money and y experience trading on margin and/or options.
You CANNOT invest into SpaceX (not pioneering SpaceX here, just an example) unless you are an accredited investor, that is, if you aren't RICH. Google does though.
These are serious disadvantages.
The real question is whether you want to be babied and coddled by people in power.
Edit: Deleted "controversial" topic sentence.