New traders daytrade because they have strong fears of failing and of losing money. Possibly also of letting significant others down. They believe that daytrading is less risky because you are just using very small positions for very short periods of time and you never hold overnight or across a weekend. They also believe that they have conquered fear and trade emotionlessly because they use charts and often because they let various indicators signal entries for them. And of course charts and indicators have no emotions. No new trader should be daytrading until they can trade profitably on a time-frame of several days.
The Fed is bigly responsible. By juicing the markets for so long, they created a "fatal attraction" of easy money among the inexperienced. As we get into the bear market, the body count will sky.
The very first rule of investing is: DO NOT INVEST MONEY THAT YOU CANNOT AFFORD TO LOSE. That rule applies to mutual funds or whatever you put your money in. Most people do not know this rule and they certainly don't follow it and that is why they keep going broke. When I hear of someone losing it all, where they say that they put all their money into this or that, or gave their whole life savings to the likes of Bernie Made-Off, it just gives me a laugh. SEE THE FIRST RULE. People have their reasons for getting into day trading. Most of them are grasping at straws trying to replace lost income and they do not have realistic expectations. They want something that will make them money right away, but they will not take time to read a book about trading, FOREX, investing, stock market, or anything else. They open a random account somewhere, pick random stocks, put ALL their money in there, and then they wonder what went wrong when it goes sideways. If they took the time to learn the basics, they would know that day trading is the easiest money in the world.
Risk of Ruin Calculator, account size won't save you from poor profit factor or low win%. You could net profit $20,000 in 1,000 trades with nice equity curve, average drawdown and still lose everything. Beware if your average loss is four times greater than the average trade net profit.
I hope she didn't invest yet in NIO because the following headline hit a few days ago. If she got lucky and dodged this bullet maybe she will realize she has no clue what is happening with theses companies. China EV maker Nio suspends production due to supply chain disruptions https://finance.yahoo.com/news/china-ev-maker-nio-suspends-090803328.html