When I started trading penny stocks, I was pretty good at scalping them and making 10% a trade front running those scams. Then the volume ran out and couldn't put much money into them and get out safely so I got into options.
Went from $5k to $20k in about a month. I was being pretty conservative too, catching bottoms and buying puts at tops. Then 2008 happened where the bottom was taken out everyday for weeks on end and lost it all.
There's too much red tape to start a fund if you don't have millions in seed money. The reporting regulations costs 100k a year minimum, and he'll need to get some kind of license, and might even require a CFA onboard.
Unless what he's really doing is controlling someone else's Ameritrade account as an "advisor" which then has limitations on what he is allowed to do. Can't put people in 100% options trades because he'll get sued for taking out too much risk. He would also make a flat percentage fee, such as 1% of assets under management. He wouldn't be allowed to use hedge fund fee structure 2/20 or anything like that without being setup as a fund.
I can double and triple money easily with high risk trades, but consistently without losing it all is impossible or all the big fund managers would be doing it.
I was at the casino last night, played roulette and tripled my money, went to black jack and lost it all. story of my life lol
Moral is, you can get lucky, but the odds will eventually catch up to you.
Quote:
Originally Posted by
rando 
I worked as a counselor at a summer camp over 15 years ago, it was for troubled kids (drugs, bad family, etc). Let a few kids get into my head because I was trying to help too many of them out, some wouldn't take the help. The head counselor brought me in for a meeting. He gave me some of the best advice a person can ever get... "You can't save them all."
