How do "day-trading gurus" like Ricky Gutierrez make their money?

If you haven't heard about this guy (I didn't until recently-saw a youtube ad of his), he's this 22 year old guy with a youtube channel where he basically discusses his day to day trades and gives advice on positions to people. I saw a few of his videos out of curiosity, and its pretty clear he's a scam-there's hardly any real analysis in his videos. Yet he mentions how he's on track to net 7M this year, and has super cars and stuff in his videos.

So how do guys like this actually make their money? Selling courses?

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Comments (48)

Aug 14, 2018 - 3:30am
CorporateSellout, what's your opinion? Comment below:

If you know that it's a scam, then how would you not know that he's actually not having a net worth of $7 million?

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Aug 14, 2018 - 3:56am
WorldsGr8estKid, what's your opinion? Comment below:

They make a few good trades and record it then upload it on YouTube; rent a few super cars for marketing and looking cool; create a course and advertise the successful students in which some are actors; PROFIT!

Aug 14, 2018 - 1:01pm
urmaaam, what's your opinion? Comment below:

I recently saw a couple of his vids. Looks like he's been a born hustler for awhile. His trading might be pretty successful, but he's also flipping those cars, in real estate, selling courses (course costs $300, free chat group is advertised as 130,000 members, if 5% paid for the course he'd make basically $2mm), merch, yt views, and I'm sure much more.

Aug 14, 2018 - 2:42pm
ArturMahogan, what's your opinion? Comment below:

Yep, I figured him selling the courses was probably it. I just don't see how anyone could fall for it enough to buy one.

Aug 14, 2018 - 2:57pm
urmaaam, what's your opinion? Comment below:

I haven't paid for it, but I do believe it could be worth it for a lot of people. It's most likely all basic finance stuff and maybe some voodoo, but it's targeted at people who know nothing. From reviews, it looks like it's not snake oil, rather just a beginner-friendly curriculum designed to keep the attention of ADHD kids watching bright, over saturated videos with action cuts and addicted to constant promises of riches.

The selling point is not some magic formula, but rather a nicely packaged intro to day or swing trading and a large community of people willing to help beginners out. It's pretty much exactly what they're doing here on WSO with the paid courses.

Aug 15, 2018 - 7:34am
ironman32, what's your opinion? Comment below:

Yes, but put yourself in someones shoes who knows nothing about finance/markets, but keeps hearing about people making "millions on wall street." Then this guy comes along who says he will show you how to do it for a small fee. You think, what do I really have to lose. (Similar to what you stated above)

Think about all the infomercials on TV on a daily basis (nutri-system, trade like chuck, flex seal, my pillow, QVC), there are people who buy this product, that's why its still advertised. Just realize two things: 1.) most people like things to be easy (if you have no idea how to cook, maybe the new non-stick pan on TV can help. If you do know how to cook, you don't need it.) 2.) people are dumb/easily duped (don't mean that in bad way, but how many people join MLMs without during their research.)

Aug 14, 2018 - 8:02pm
Whatever1984, what's your opinion? Comment below:
urmaaam:
I recently saw a couple of his vids. Looks like he's been a born hustler for awhile. His trading might be pretty successful, but he's also flipping those cars, in real estate, selling courses (course costs $300, free chat group is advertised as 130,000 members, if 5% paid for the course he'd make basically $2mm), merch, yt views, and I'm sure much more.

damnit, you beat me to it.

The only difference between Asset Management and Investment Research is assets. I generally see somebody I know on TV on Bloomberg/CNBC etc. once or twice a week. This sounds cool, until I remind myself that I see somebody I know on ESPN five days a week.
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Aug 14, 2018 - 1:13pm
ironman32, what's your opinion? Comment below:

In general, whenever you see an advertisement like this, ask yourself why they are doing it.

I don't know RIcky Gutierrez specifically, but everyday CNBC has the trade like Chuck commercial running. So similar.

If this guy was making so much trading, why waste time trying to teach others how to do it. Why not day trade until you have more money than you need, and retire? It's because selling his advice is easier than day trading, because day trading is hard to do.

Oct 23, 2018 - 4:48pm
neink, what's your opinion? Comment below:
ironman32:
In general, whenever you see an advertisement like this, ask yourself why they are doing it.

I don't know RIcky Gutierrez specifically, but everyday CNBC has the trade like Chuck commercial running. So similar.

If this guy was making so much trading, why waste time trying to teach others how to do it. Why not day trade until you have more money than you need, and retire? It's because selling his advice is easier than day trading, because day trading is hard to do.

To be fair, there are successful day traders that spend some time teaching, John Carter being one of them. In the end, they show their setups, talk about the psychology and risk management and it's a good way to revisit your own style and psyche. It's not as bad as it looks like, because day traders can have 2-3 empty hours during the day.

That being side, I don't think Ricky Gutierrez is legit.

Never discuss with idiots, first they drag you at their level, then they beat you with experience.

  • 2
Aug 14, 2018 - 6:48pm
Malta, what's your opinion? Comment below:

I actually know him. A lot of it comes down to YouTube views. You'd be shocked by how much ad revenue people make with this stuff. I have another friend who is comfortably in 6 figures off of YouTube. Made me think of starting my own channel.. lol.

“The three most harmful addictions are heroin, carbohydrates, and a monthly salary.” - Nassim Taleb
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Aug 14, 2018 - 6:56pm
CRE, what's your opinion? Comment below:
SoCalRE:
I actually know him. A lot of it comes down to YouTube views. You'd be shocked by how much ad revenue people make with this stuff. I have another friend who is comfortably in 6 figures off of YouTube. Made me think of starting my own channel.. lol.

Same. I'm so absurdly uninteresting, however.

Commercial Real Estate Developer

  • 6
Aug 14, 2018 - 7:34pm
Malta, what's your opinion? Comment below:

https://www.youtube.com/watch?v=5lCLtgGykFo&t=949s

I think this video is pretty great. Makes you realize that people actually do want to listen to you. I read all your RE posts for one (I'm sure a lot of other people do too). People want information and don't understand real estate really well. I plan on making my channel RE focused.

“The three most harmful addictions are heroin, carbohydrates, and a monthly salary.” - Nassim Taleb
  • 3
Most Helpful
Aug 14, 2018 - 6:50pm
BobTheBaker, what's your opinion? Comment below:

If a trader is killing it day trading then he/ she is not selling their strategies. If he/ she is trying to sell their strategies then they are not killing it day trading and it is a scam.

Array

  • 5
Aug 20, 2018 - 8:43pm
vik2000, what's your opinion? Comment below:
BobTheBaker:
If a trader is killing it day trading then he/ she is not selling their strategies. If he/ she is trying to sell their strategies then they are not killing it day trading and it is a scam.

Baffles me ppl can't process this simple logic. These scammers will continue to exist thanks to all the idiots in this world.

Oct 23, 2018 - 4:56pm
neink, what's your opinion? Comment below:
BobTheBaker:
If a trader is killing it day trading then he/ she is not selling their strategies. If he/ she is trying to sell their strategies then they are not killing it day trading and it is a scam.

The most successful day trader out there can sell his strategies and most people will still lose their money, because they don't have the discipline to handle them.

Plenty of successful traders have a win/loss ratio that's 40% or less, but they are consistently profitable because of the old good ''cut your losses '' ''let your profits run''. Most people make 10 trades, they get killed 6 times, decide that the system they bought doesn't work, start meddling in it with their own inexperience, for example not using stops, blow up their account and then whine that they have been scammed. They just lacked the discipline to trade and the market is unforgiving.

Never discuss with idiots, first they drag you at their level, then they beat you with experience.

  • 3
Oct 23, 2018 - 8:47pm
chrysosclancap, what's your opinion? Comment below:

Having dabbled with my own money a little, I can confirm it takes an incredible amount of discipline and self-awareness to beat the natural, but self-defeating tales we fall for again and again.

  1. On a rising stock "just one dollar more" and you end up riding it past the peak into the next trough

  2. On a falling stock "Oh it will bounce back" and you ride it down.

Aug 15, 2018 - 8:16am
princepieman, what's your opinion? Comment below:

all of their income is from convincing gullible people to part with their cash some way or another.

Array
Aug 17, 2018 - 7:30pm
AndyLouis, what's your opinion? Comment below:

first and last day trader i ever interviewed https://www.wallstreetoasis.com/blog/interview-with-a-wandering-day-trader-part-12

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Aug 17, 2018 - 9:04pm
Synergy_or_Syzygy, what's your opinion? Comment below:

Quote from that interview in 2013: "I am very concerned with the economic outlook of not only the United States but also the global economy."

S&P 500 close @ April 4, 2013: 1,553.69 S&P 500 close @ August 17, 2018: 2,850.13 ~183% return.

Anyone think you could do that well day-trading, not to mention with 10 bps of passive fees?

Also he mentioned the Nifty:

Nifty close @ April 4, 2013: 5,574.75 Nifty close @ August 17, 2018: 11,470.75 ~206% return (although considering the S&P returns, not very much risk premium here!)

You could simply dollar cost average and do much better.

Be excellent to each other, and party on, dudes.
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Aug 17, 2018 - 11:54pm
H13x, what's your opinion? Comment below:

I believe the revenue model is selling infoproducts and views, no?

No pain no game.

Aug 21, 2018 - 10:54am
chrysosclancap, what's your opinion? Comment below:

As other have said he might make a few good trades, but his bread and butter is sound investments, ads on youtube and selling several hundred dollar packages to chumps who like the girls and cars in his videos and think that by watching his video they will flip their 1000$ savings into 1M a few months in.

Get rich is easy in the sense that if you work hard enough, work smart enough and keep trying you'll get there (read: not easy). A kid with a video series isn't going to be the short cut.

Aug 21, 2018 - 3:12pm
WidespreadPanic90, what's your opinion? Comment below:

probably highly levered

"That was basically college for me, just ya know, fuckin' tourin' with Widespread Panic over the USA."

Aug 22, 2018 - 12:24am
tackytech, what's your opinion? Comment below:

It's the same old, same old "Fake it 'til you make" marketing it pipeline, where they make money through their followers and customers.

Anyone, and I mean ANYONE can bullshit about making $10k a day, with some photoshopped pictures of their trading and savings account, and glitzy pics on their social media to flex on their followers.

Then, when you've accumulated 10k followers, you start introducing "signaling" channels - i.e a private chat group where you tell your followers what to buy, or look for, in exchange for say $50 - $100 / month fee.

Then you release some private webinars, with the same old and rehashed information. Maybe you've hired some designer to make it pretty, but it's all basic information you can find in any 101 book on technical analysis.

By now, you have a couple of income streams, and probably enough money to actually do serious FX day-trading, or whatever.

These guys are not interested in intermediate traders or knowledgeable people, they're geared towards absolute beginners and dreamers, the type of people that want to turn their $100-$200 into $10k by doing FX magic.

18 year olds are just looking for someone to confirm their beliefs, and these hustlers will do just that. They will tell them "This is how you turn 100 bucks into 10k in just 60 days, you just need to buy my course/ join my private club / get on my signaling list for a low, low price of $x, here, check out my bud who's now raking in cash doing nothing!".

edit: Just to hammer it in, they're selling dreams and leveraging your naivety. It doesn't mater if it's FX, cryptocurrencies, MLM products, weight loss, sex life, hair loss, and what have you.

They know what you desire, and they know you're not thinking critically, due to your strong attachment to said desire. When you're desperate, you don't think critically.

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Oct 23, 2018 - 7:09pm
series7examtutor, what's your opinion? Comment below:

My guess is that the average day trader loses money. If it is extremely difficult to beat the market with fundamental analysis, it would be next to impossible to reliably beat the market with some type of hokey trading scheme. There are some people who will believe anything in hopes that they can make money the easy way in the stock market.

http://www.series7examtutor.com

  • 1
Oct 24, 2018 - 10:49am
WolfofWSO, what's your opinion? Comment below:

$7M!? That's nothing!

I'm looking to clear 2-3x that amount. I have a formula that is loss proof.

Keep this between us as I don't want to let everyone in on it, but I'll share this formula with you and give you monthly updates for a nominal fee of $1000 upfront and $100 a month. I accept cash or money orders only. Let's get rich.

Array

  • 2
Feb 8, 2019 - 11:40pm
Mostly Random Dude, what's your opinion? Comment below:

You do realize the 100k is not real money?

I have a friend who lives in the country, and it's supposed to be an hour from 42nd Street. A lie! The only thing that's an hour from 42nd Street is 43rd Street!
  • 1
Jan 31, 2019 - 9:59pm
Mostly Random Dude, what's your opinion? Comment below:
ArtemisFole:
22 year old guy ... gives advice on positions to people
I'd rather have a 22 year old girl give me advice on positions...
I have a friend who lives in the country, and it's supposed to be an hour from 42nd Street. A lie! The only thing that's an hour from 42nd Street is 43rd Street!
  • 1
Feb 9, 2019 - 1:05am
Fill-or-kill, what's your opinion? Comment below:

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Feb 13, 2019 - 6:12am
mswoonc, what's your opinion? Comment below:

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Odit non et omnis aut eos fugit dolore. Aut enim sit rerum accusantium dolor error iusto.

Jun 19, 2019 - 5:11pm
lwgooditis, what's your opinion? Comment below:

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