Sep 24, 2020
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Making Money (And Teaching Others To Do It Too)

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Anand Sanghvi (AKA Sang Lucci) makes money trading options and teaching others to do the same. Wall Street is pockmarked with traders that broke free of investment banks and trading firms to manage their own portfolios. What s less common is for a successful trader to do so and deign to aid others the right way to succeed in the game as well

 

Options trader Anand Sanghvi took any such path. Only 30 years old Sanghvi s highs include ballooning his father s retirement fund to over $2 million and his lows at the trading table have showed him what it s like to lose $350 000 in 20 minutes. Bouncing back his firm – a small group of friends that live together in a Manhattan apartment and operate under the collective name Sang Lucci – is closing year two of a hedge fund adventure wherein an initial $400 000 has grown to nearly $2 million

 

All the while Sanghvi has taken on students – disciples if you’ll – that pay to benefit what he knows about earning profits fast by trading options on blue chip stocks. Beginnings Sanghvi carries with him a basic entrepreneurial spirit. He found easy methods to make additional cash while a finance student at UMass Lowell by flipping sports tickets selling goods on eBay and purchasing and reselling gaming consoles

 

In college I always had an aspect business always had something taking place he remembers enjoying a late breakfast in the vast high-ceilinged apartment he shares with his team several blocks from Wall Street. Things took a more serious turn when at 21 he became a father and moved in with his girlfriend Lisette

 

I had to get things going and sustain a household. Always attracted to finance he took a position as an analyst and staff accountant at Fresenius Medical Care. I was miserable because I was entering into daily looking at the same spreadsheet and hating it 100 percent. PROMOTED Civic Nation BRANDVOICE | Paid Program
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Cultivating Young And Diverse Talent With GRACE In 2006 Sanghvi s dissatisfaction brought about his resignation but he soon found a commission-based trading position with PTG Capital

 

Toiling for over a year the nuances of trading started to sink in and he started earning profits consistently. By the 2008 crash Sanghvi was named top trader using the quick as his tool. In the crash you can push a button and short something and make money in seconds—it was just panic every single second

 

After the market bottomed PTG began investing long on financial institution. When the banks fell so did the firm. With his leverage capped Sanghvi left in early 2009. Going Solo Anand Sanghvi Taking his savings – in addition his father s retirement nest egg – he set out on his own solo trading adventure

 

Picking up cheap stocks like Las Vegas Sands Bank of America Citigroup and others – also playing some options – he grew their portfolio value to over $2 million. Jubilation turned to dismay however when Sanghvi lost over $350 000 investing in SPY fund. It was just bad timing says Sanghvi. I was super cocky at that point because I had made all this money

 

The shock of the loss marked the beginning of period of introspection. It just broke me mentally he says. Once you re sitting there looking at the screen on a loss you re losing the type of money that folk never really see every day or even a yearly basis or even in their whole lives

 

What followed was a year of market inactivity for Sanghvi. He traveled spent time with his daughter Avani and contemplated his next move. To hear him speak about that point one wonders whether he s ever been able to shake the trauma of losing a sizeable chunk of a hard-earned portfolio in less time than it takes to monitor a single episode of a sitcom

 

One also wonders if that impact was a priceless lesson that s made him better. A Return to the Market Taking his lumps Sanghvi returned to trading in late 2010 with a perhaps more grown-up decision to cultivate an aspect business. He started a blog focusing for sale his moves and debunking what he felt was misinformation in financial news

 

Calling his site SangLucci. com ( Sang taken from his last name and Lucci a hip-hop reference for money) he wrote four articles daily hosted a free chatroom and held one-on-one Skype sessions ($89 for four sessions) from his office in Boston. As his understanding of social media grew so did his following and Sanghvi raised prices on his information products high enough to hide all of his basic expenses

 

An 8-month partnership with trading education site Profit. ly raised Sang Lucci s profile but he found he was spending more time on his 250 plus subscribers than he was on his own trading. At the end of the day I know hands down that I will always earn more cash trading than running an alert service

 

Sanghvi Bathgate and Zhang. With a renewed focus Sanghvi found a kindred spirit in Peter Zhang whom he met at a Las Vegas conference in early 2011. At the time Zhang – now head of risk management at Sang Lucci – suggested over sake bombs at The Venetian hotel that both could start their own hedge fund

 

Sanghvi wasn t sold. Undeterred Zhang recruited Charlie Bathgate a Hollywood capital campaign worker to aid set the groundwork for a fund. The trio hooked up shop in New York and began raising money from friends and family. Today the fund stands at just below $2 million in assets up from an initial $400 000 raised in February 2012 from 11 investors including $100 000 from Sanghvi himself

 

This year our last numbers were up over 400% says Bathgate. But I would say that with a strong disclaimer that each investor in our fund knows it s an exceedingly high-risk high reward proposition. Sanghvi admits that investing someone else s money initially made him trade more defensively. After seeing some losses due to his trepidation he nipped that tendency in the bud

 

Look I know what I m doings—this is what I do he says. Teaching The firm s website services have also grown. Charging $250 for yearlong membership or $83 for three months the site has attracted about 300 subscribers at recent count. The modern trader has evolved to be more accepting of an academic service like Sanghvi s site

 

They now expect to pay somebody to aid them start in the game he says. The axiom people who can do and those who cannot teach may not be applicable here. Sang Lucci s modus is to take screenshots of its moves and results at the end of each trading day and post them on their Twitter feed even with whether they won big or lost

 

At the moment (Sanghvi) has over 7 000 followers on Twitter said Bathgate. If he posts a large loss there are all kinds of people who pop out of the woodwork and say You re an idiot for doing that. Criticisms aside that form of transparency is essential for convincing newbie investors that the service and traders behind it are for real

 

This is the cost of what we committed to and it s worth it. The high frequency options game though risky allows Sanghvi to make fast headway in his portfolio. He finds that young investors fresh out of college are not equipped to fully remember that strategy. I remember one professor told his students that what I was doing was not possible Sanghvi says

 

Investment curriculum should be updated with the intention to ready finance students for modern trading realities he added. Most recently Sang Lucci launched a second hedge fund with a $450 000 startup kitty. One trading partner is Haim Bodek former Goldman Sachs and UBS insider who founded the now defunct Trading Machines

 

Bodek a groundbreaking high volume options trader blew the whistle on what he felt were unfair advantages handed out by stock exchanges to certain high frequency trading firms. His testimony has brought about an SEC investigation the book Dark Pools by Wall Street Journal writer Scott Patterson and a documentary called The Wall Street Code which features Zhang and Sanghvi

 

What does the team do for fun? Bars clubs concerts tennis at the West Side Highway courts… By the manner we throw crazy parties says Sanghvi. We pack 100 plus people in here and it gets crazy. There s no doorman and nobody lives downtown – nobody lives in lower Manhattan – so we never get busted

 

Follow me on Twitter @KarstenStrauss **Changes: An earlier version of this post spoke of Haim Bodek as a seed investor in Sang Lucci s hedge fund. He’s a trading partner. ** Gallery: The 20 New Rules Of Money
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