Volatility is an aphrodisiac, but also a poison.

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For many beginners entering the U.S. stock market, the first thing they do is buy the major indices SPY and QQQ. After holding them for a while, they realize they aren’t making much money, so they start looking for stocks that surge 10%, 20%, or even double in a single day—thus embarking on the rollercoaster journey of losing money in trading.

For newcomers, a 10% daily gain might seem like a shortcut to quick riches, as enticing as an aphrodisiac. Here’s a simple scenario: Suppose you make only 10 trades a year, going all-in each time and earning 10% per trade. With compounding, your annual return would be 159%. Some, unsatisfied with the gains from regular stocks, see others multiplying their money with options—sometimes even tenfold—and jump into options trading. Imagine buying an expiring option that doubles in a day, earning more than a year’s salary in a single trade. Who needs a job then? With such alluring fantasies, many can’t resist the temptation and inevitably give it a try.

In the beginning, luck and lingering caution often lead to profits. Buy, see a rise, cash out—pure bliss. But gradually, greed takes over. A rising stock makes you crave even more gains, yet fate seems to mock you: Just as the price nears your target, it reverses. You watch your paper profits erode, clinging to hope for a rebound, but the stock seems to defy you, sinking further. Soon, it drops below your entry point, but you still refuse to sell. Down another 10%, you vow to exit at breakeven. Then it plunges 20%, and negative news floods in. Disheartened and hopeless, you finally capitulate—only to see the stock jump 10% the next day. It’s as if Wall Street’s big players are watching your account and screwing you over.

Are they really targeting you personally? Of course not! Wall Street collects retail investor data, but it’s not about your individual account—it’s about big data to design trading strategies. For you, it’s like swallowing a pill Wall Street hands you, labeled “volatility.” Either you’re a skilled trader, bold yet meticulous, resisting the pill’s assault on your willpower, or you swallow it and follow the script, step by step, into the trap—until you’re forced to cut losses and exit. For the latter, it’s poison.

The U.S. stock market is the world’s fairest trading arena. When you chase high returns, you face high risks. Volatility is the perfect tool to harvest naive investors who are bold but clueless. Thus, it’s as seductive as an aphrodisiac—and as deadly as poison.