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How “Easy Money” Turned Into A $50 Million Loss

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Trading Lessons

How “Easy Money” Turned Into A $50 Million Loss

Timothy SykesAvatar
Written by Timothy Sykes
Updated 1/2/2026 5 min read

Social media is full of traders who “made it”.

Faceless accounts that brag about gains, photos of yachts above bio’s that tote fantastical crypto currency predictions.

They make it look like everyone’s winning. And even worse, it’s a painful reminder that you’re not winning …

I’m here to set the record straight.

Every few months, the market exposes a brutal reminder of the carnage that we don’t see on social media. The losses that happen behind closed doors.

In the last week of 2025, that reminder came in the form of a catastrophic $50 million wipeout.

Make no mistake, multiple traders lost their entire life savings. One of them even opened a GoFundMe to try and recoup the losses.

I’ve warned traders about these risks for years.

When you follow a self-declared “guru” who promises easy money and five-minute workdays, you’re not trading. You’re gambling your future.

And the house always wins.

I can’t tell you how many traders have come to me saying the same thing:

“Tim, I wish I’d found your process sooner. I believed the hype on social media. I blew up my whole account.”

It’s always the same story:

  • They thought they had cracked the code.
  • They thought their strategy was safe.
  • They thought the risk was small. Until it wasn’t.

Don’t make the same mistake I’ve seen countless times.

Unfortunately, this message won’t reach everyone. But hopefully I’ll save a few of you from a road to disaster.

This is the story of how $50 million evaporated in a few days. And the lesson every trader needs to learn before it happens to them.

The Latest Implosion

In late December 2025, the market exposed yet another self-proclaimed trading genius.

His name is David Chau, but online he goes by “Captain Condor.”

Chau ran a private group of more than a thousand traders who paid over $5,000 a year to follow his “can’t-miss” strategy.

Every day, he and his followers bet on short-term options contracts tied to the S&P 500. The kind that expires within hours, known as 0DTEs.

The trades looked safe on the surface. For months, they produced small, steady wins. Chau bragged about the consistency on podcasts and social media. His followers believed he’d cracked the code.

Behind the scenes, he was using a Martingale system, doubling down after each loss to help recover quickly.

Yes, that approach works … Until it doesn’t.

On Christmas Eve 2025, the market hit record highs, thwarting Chau’s last big bet against the market.

More than $50 million vanished in days. Some traders lost their life savings. One opened a GoFundMe just to pay bills.

Look at the post below:

And just like that, another “guru” was exposed for what he really is: A gambler dressed as a mentor.

Ill-equipped traders implode like this every few weeks. But usually the story doesn’t play out on the grand stage.

So how do you protect yourself from the next Captain Condor? How do you build real consistency instead of chasing easy profits?

That’s where my process comes in.

It’s built on real trade patterns, preparation, and proper risk management (no doubling, tripling, quadrupling down).

Let me show you exactly how it works.

A Real Trading Process

Captain Condor’s followers weren’t unlucky.

Things like this happen every day in the market. They’re not the last to follow a fake guru.

Market wizards promise returns for their followers. They might even have a few months of a track record to back it up. But the end result is always the same.

Complete annihilation.

The difference between my process and the Condor’s is the same difference between gambling and trading.

The idea of doubling down to recoup a loss, that’s a flawed mindset.

Losses are part of the process in the market. We don’t have to be afraid of them, we just have to control them.

Chau’s Martingale system operates under two incorrect assumptions:

  1. I’m right, the market is wrong.
  2. This loss is bad, I have to erase it right away.

Constantly doubling down on the same position after a loss invites the idea of eventual supremacy over the market. Traders think their thesis is correct, and they’re willing to die on that hill.

Not only that, they’re emotionally distraught after a loss. And they’re looking for a way to reverse it on the next trade.

  1. I don’t double down. I understand that sometimes I’ll get it wrong.
  2. Losses aren’t bad. It’s natural to lose while trading.

These are essential factors in the framework that I’ve traded for over 20 years.  And it’s the same process that’s already helped more than 40 students become verified millionaires.

Not by luck, not by following my trade alerts blindly, but with discipline. They learned the rules, stuck to the system, and built their accounts step by step.

Plus, we have to acknowledge another side of this argument …

You don’t have to trade at all. Trading isn’t for everyone.

But those who do trade, do it the right way. Do it with a plan that limits your risk and keeps you in the game long enough to actually learn how to win with self sufficiency.

Hopefully this gets through to some of you …

Stop chasing “easy money” setups.

Because eventually, that money will flow out of your account just as easily as it flowed in.

Cheers

 

*Past performance does not indicate future results


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Comments (2)
BerehaneJan. 03, 2026 at 3:06 pm

Trading is a Marathon not a sprint- Tim.Thank you.

TerryJan. 02, 2026 at 8:33 pm

I have so many ads coming up on my fb feed these days for fake gurus just like you describe. I’ve never tried one. I’ve been curious. Some are pushy and I respond asking to show their verified trades. Then that ad gets removed, eventually replaced by another. I’m fortunate I hadn’t ever gone down that road. Good reminder, thank you


Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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