Most new market participants enter the market looking to trade the most volatile (cheap) stocks with the highest degree of risk. For most, it is usually a fairly quick dose of reality as the market scares them straight as they watch their account race to $0, faster than you can say “and it’s gone”.
Other than the monetary loss, more importantly, it’s the emotional one. “The market is rigged” most will utter. Yet it wasn't rigged when that one trade worked? It’s just rigged when the next trade blew them up. This is why we hammer home the process of learning first. However, this is exactly what most do not want to do. Read? Daily? Learn? Fuck that. I just want to crush it.
There tends to be two major ways that new traders die, the quick or the slow death. The quick death is a story we break down at the end of What's Next; it tends to be people with money to burn, literally. They did something right to amass their wealth and in a flash it's gone. Mr $80k learned that lesson in 48 hours.
On the other hand, there is the slow death. This trader experiences loss after loss and just gives up. They keep looking for the next hail mary by chasing names with no defined strategy. These people often have been successful in prior endeavors (from hard work and consistency) yet expect to stroll into the market and take money out of professionals pockets like Shake who looks at 1,000+ charts a day and will flush the figure where your stops are just for kicks.
The market has little room for arrogance and ego
This problem tends to be compounded even more quickly (fast and slow death combined) when they trade on margin. They don't have the bankroll to afford their fuck ups, nor do they have the experience to realize their fuck ups are actually -- fuck ups!
Do you have balls?
If you have had a similar experience where the market scared you straight, explain the story in the group chat. Trust me others will share their stories too.
POST IN THE WHAT’S NEXT CHAT