Regarding "My buddy probably helps this guy earn through commissions." He is not rich, to buy grocery with friend's commission. ************************************************************* Regarding "I lost over $250k of my own funds" Most traders lose (roughly more than 90%) eventually, for the last 400 years of capitalism and in most country. I am sure the market is zero-sum, BEFORE expense (comm+tax). I guess the 250K went to other traders and comm and tax, / possibly 100K to unknown traders and 50K to comm and 100K to IRS.
This is an elegant metaphor for the huge and ETHICALLY APPALLING presence of TA and trading educators/vendors, among the few % of those who actually make live trades with their own accounts on non-micro contracts. In conclusion, TA trading educators and vendors who do actually trade are extremely rare (.1% or less based on observation) and among those .1% of approximately .1% of those are consistently profitable and among those who are profitable, for statistical purposes, 0 who are consistently profitable at all times, in contrast to their dishonest claims, therefore any profitable trader who is also a vendor or educator must adapt by pushing more educational/vendor products when supply and demand controls limits or nullifies profitability, as in your example of trees.
Knowing too many rich mentors with too much detail about them individually could easily get confused!
IMHO, worst trader bring cash advance of 10K (annual 20%) to security market. Credit card company is smart to know there is NO PLACE in the world which grows faster than annual 20% compounded.
I think for individuals with large accounts percentage return becomes less important. A 5% return on 10 million is more than a 20% return on 1 million is more than a 50% return on 100,000. As a trade or investment account grows it is wise to reduce risk and accept lower percentage returns as the absolute returns increase. This is why you don't often see long term double digit returns on large accounts, if the account is large enough it's just not necessary. Single digit returns will be enough to cover the financial needs of most investors if the account is multiple millions.
He rarely goes up there. All the labor is outsourced. He says he averages 12% per year over the long haul. Seems consistent with others I've read about with similar operations. Some years - or even multiple years...you get nothing from the trees.
If you want to really get into options quickly, try Nadex (no I don't work there, I just think they're a great product)...you can trade for as little as ~$50/option and can really get your feet wet...