Can't you all just be happy that 1 trader had a lottery win and keep working the problem and have hope that 1 day that could be you?? And there is no such thing as luck, he had a stastically improbable run in his direction. Or maybe, he just had the balls to jump on huge swings and hold and increase trade sizes.
Watched a short clip of this guy on Twitter and he did not have a clue on how to read candlesticks and was teaching people, how to do it? I think it is a safe guess that he is risking more per trade than those traders adhering to risk management rules. Chances are good, those who follow him would blow up their accounts. Only way you are making so much per trade to run up a small account is to be risking most of it on each subsequent trade. One bad trade that fails is all it takes or successive losing trades. Anyone can risk a small amount and run it up a huge amount for a short period of time. You can also, go into any casino and get lucky.
I actually go all in for most of my trades. But I have a very defined stop loss. So yes, I can make a lot in a short time than someone say risking only 1% of their account. As long as you have a defined stop loss you will never ever "blow up" your account. Say your stop loss for e.g 10%. You wont blow up even after 10 consecutively losing trades as each 10% loss your account shrinks but never ever goes to zero.
You do know that a stop loss would not protect you from a gap down or gap up depending on your position? Just because you have a stop loss, does not mean you will be able to exit at that exact same price? Remember that stop loss, once triggered becomes a market order? One big gap down, could wipe up a good chunk of your monies, in one fell swoop? So, if you have one big gap down that drops your holdings to 50% or more and you have lost a good chunk of your monies even if you have your stop loss set at 10%? And if you have consecutive trading losses, one after the other? Don't say it can't happen to you and you are somehow special? All you will need is more monies to start over from scratch.
I do the same but never hold over news bad spikes have given me 50pt instant losses for a 5pt SL Instant account death, why i squirrel profits away to a BAD day recovery fund.
Yes, I also hate that they do that, and this is what usually makes me suspicious as well. But: a) This could mean there are many more “quiet” guys out there making fortunes without selling anything and without being known. This could be someone like the OP mentioned here initially. b) The guy I mentioned, knows that he is reaching his capacity and won’t be able to continue multiplying his account much longer. He’s already going in with $50k+ on some penny stocks where stakes are getting higher and higher. It’s also very stressful, so after a while many former traders start offering some training. And actually training can become more profitable than trading, so it’s a business like all others. Another guy, Ross Cameron of Warrior Trading shows how he’s making, say $500k in a year from trading, but now employs several more traders as “trainers” and has 550K YouTube subscribers, where I suspect he may be making several $million from training, per month... Many people are also business minded and building a training organization becomes their goal when they see what others do. They have to acquire at least some trading skills to achieve that.
2. Why does he have to keep multiplying, if he only makes 20% per year for the rest of his life, then that's still a pretty damn sweet life. no point, making more $$$'s than you can spend, spend more time spending then making!!
It is more lucrative to teach and get paid for it as you have 100% gains and no losses. You have a guaranteed pool of wanna be traders and all you are giving them is knowledge. No guarantee of success whatsoever. In turn, they willingly, turnover thousands of dollars of their hard earned monies in the hopes of striking it rich someday. Of course, hope springs eternal until, the day comes that they have lost all their monies. Without any sensible risk management, you are doomed. Ask the great Timothy Sykes who was even on the cable series Wall Street Warriors. The videos might still be on You Tube. Not sure if they had it still on Hulu. Story is he ran a hedge fund worth $10 million with most of the monies, being his friend's. He lost a good chunk of it and had to close his hedge fund. Can you imagine if Timothy Sykes had a good risk management system, he could be a highly, successful hedge fund trader now? Then, again, he traded penny stocks so, hard to replicate using low float penny stocks.