"Day Traders" on YouTube

Scrolling through my phone, I saw one of those videos and I felt curious. Despite seeing those videos on recommendations every day for 5 years, today something just made me curious about how those titans operate. I'm talking about "A day in the life of a day trader". Those channels where you can see how 90% of them put trades at 9:30:01, and at 9:31:00 they just switch off the neon computer and go into their penthouse's kitchen to cook a green smoothie and head out in a Ferrari (and the other 10% who analyze charts using Fibonacci sequences for 5 hours to buy 1 $TSLA on margin). Some videos tend to be humbler by adding explicitly 'millionaire' to the video title.

So, I was just wondering, what's the business model of those guys? I've never fully dug into what day trading entails (my understanding is the one of an average WSO user) and I was always distant from it because I understand that active investing (what they do) may be worthless when a passive index outperforms even top HF

Some of the business models of those guys which I assume may be more plausible considering their lifestyle:

a) They may end up losing 90% of what they've put into but because of their views, they can gain that 90% back and even make some profit.

b) They use simulators or practicing platforms and capitalize on video views. 

c) They may end up losing 90% of what they've put in (v2.0) but they sell courses on day trading, do seminars, and mentor Indians who want to day trade and that's their source of income.

The only videos that I believe are legit are those that sound similar to How a Japanese trader turned $15.000 into $150M, where it's not about staying 8 hours in front of the screen, but instead seizing an opportunity (even driven or something similar) and putting your mom's savings into it.

So, anyone who believes that those guys became millionaires by day trading? Any other business model with which you could come? Or am I just wrong and day trading is the path?

 
Most Helpful

If they are so successful , do you think they’d waste their time making a video for a few views? Especially when YouTubers have been getting rolled on? I can’t find it now, but some diamond dude in NYC was robbed after flaunting his stash/stack on YouTube.

If they are so successful, why would they bother to make a course to sell thus giving up their edge?

And so forth.

Business model is fake if until you make it to get views and monetize.

Disclaimer, I hate social media, influencers, and tik tok with a passion.

 
WolfofWSO

If they are so successful , do you think they'd waste their time making a video for a few views? Especially when YouTubers have been getting rolled on? I can't find it now, but some diamond dude in NYC was robbed after flaunting his stash/stack on YouTube.

If they are so successful, why would they bother to make a course to sell thus giving up their edge?

And so forth.

Business model is fake if until you make it to get views and monetize.

Disclaimer, I hate social media, influencers, and tik tok with a passion.

The pope has spoken.

The poster formerly known as theAudiophile. Just turned up to 11, like the stereo.
 

Yeah vast majority of internet gurus etc are obviously garbage but they must work and make a good amount of money otherwise there wouldn't be so many. The problem we have is that we are all smart enough to easily realise its trash but if you put yourself in the shoes of the average or below average person with zero knowledge of finance and with a shit life, its very easy for them to fall into the trap and buy a course.

 

I think they just do crazy bets and break even on looser because of views. Think about it if you just randomly guess you might be right 50% of the time and if you are throwing in 100k a trade and hit it looks really cool. Then when you loose your hundred grand turns into say 70 or 50 but you get so many people to watch because they love to see losses that you make that back. Also selling the courses is even more income. 

 

Last year, I made the initiative to day trade all summer instead of taking a job. Spent $200 on a trading course. Basically the stategy was to use indices like a 9-MA, 180-MA, volume, RSI, and MACD to determine if a stock has upside. The problem was it was hard to track which stocks were about to blow up. I had 2 screens with 16 1min charts to track which stocks would blow up. Then I would miss stocks that weren't on my dashboards or had no catalyst in the past. I went on youtube to watch TradeIdeas, a platform that basically shouts any stock that is gaining momentum. It had a 1-minute delay to it. That shit was so annoying because of the false positives, I would get tired of tradeideas spamming ticker names that didnt do anything. I quit when I found out the stocks I sold to start day trading actually made money, meaning if i got a job and held on to my stocks I wouldve been in a much better position. Long story short, I sort of not regret day trading in the summer because I learned alot about the markets, but i will never do it again

 

It's a mix of the following in no particular order:

  1. Some are using a simulator.
  2. Some are pumping stocks and dumping them onto their subscribers.
  3. Some are trading with money they'll get back from their subscribers and youtube ad revenue.
  4. For some, their real business is "teaching" and not trading. They make more selling courses than they ever do trading.
  5. Some are making money doing things their subscribers couldn't do, like shorting hard-to-borrow OTC pump and dumps from brokers where you need $25k to have an account. And they have such large accounts from the money they make off their subscribers that they can keep adding and then really go in big when the trend changes. That's a real strategy that works. Find a stock that's sending out emails from promoters and keep shorting it until it dumps (if you can find the shares). Unfortunately, most of their subscribers ask questions like, "What's the minimum amount I need to open an account!?" Like their gurus, they're trying to turn $2,000 (the minimum for a margin account) into $1,000,000. Some use offshore brokers to get around the pattern day trader rule and short. Some of these gurus had parents bankrolling them before their subscribers.

I think I got it all. Basically, their edge is their subscribers, courses, parents, and youtube ad revenue. It's all entertainment.

 

This is a great idea. Run a couple of sim portfolios with a few different moves and make videos around whichever scenario you want and pretend it was  what you expected to happen. Then copy paste one of the many free guides on options trading or valuation and rebrand it as your own self-taught course.

 

Theres two types:

1. They are selling courses or directly make money from their content. This is the majority.

2. They are actually profitable traders. I think some legitimately are. 

Both are kind of narcissists. Don't underestimate how much some people want to flaunt a lifestyle, that they may actually have, as a means to feel good about themselves. 

 

Rerum ex pariatur et. Laudantium itaque quae optio.

Consequatur iste reprehenderit et officia aut perspiciatis non. Repellat porro est ut exercitationem facilis est. Recusandae quia veniam doloremque maxime ipsa et. Ut quidem reprehenderit voluptas asperiores quaerat et ut.

Nobis numquam quam accusantium consequatur dolor enim consequatur. Id soluta molestiae quo quas. Magnam doloremque molestiae natus architecto quia. Consequatur saepe voluptate cumque eos porro. Distinctio minus ut dolorem eaque labore placeat sunt. Amet necessitatibus reprehenderit et dignissimos sit eos asperiores.

STONKS

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”