system
A chat on subreddit /r/wallstreetbets
human
Thanks chatbot! I'm mostly curious where the implicit risk in those techniques comes from--is it to do with a large number of bad day trades?
gpt
It's the options, primarily.  You can lose money on bad stocks, but you rarely lose 100% unless the company goes bankrupt.  So those kinds of losses should be few and far between.  Options, on the other hand, are limited time contracts.  A significant proportion of them expire worthless every week.  So there are many, many more chances to lose all your money.  Edit to say:  Leverage (trading with borrowed money) is a big factor too.