Anton Kreil Remorselessly Savages Charlatan Trading Educators

here's the red flags of a charlatan educator who pushes the inversion narrative and is essentially working for the broker day trading always works well we know it doesn't always work because the trader is a slave to volatility and the trader doesn't tell the market what's possible the market tells the trader what's possible remember our Eurodollar example 106 buying sell for the next 250 trading days buy at 106 sell at 106 if there's no volatility you can't make money impossible so day trading doesn't always work in fact it works in the minority of cases it only works in history in the last 15 years 20% of times on average and that is a statistical analysis you can't argue with it we're looking at US equities in particular specifically and the major Forex pairs and 80% of the time it hasn't worked the odds are not in your favor so what does that mean you're being told the inversion narrative you're being the told you're being told the opposite of what's true but what does that do for the broker in the educator guaranteed volume every day if you absolutely believe that day trading always works or works in the vast majority of times in history and going forward what are you going to do well you're a guaranteed idiot you're guaranteed to trade all the time fantastic perfect lines they get paid not you next one it's better to not have overnight risk and to exit your positions at the end of the day always why is that good for the broker and the educator because you guaranteed to trade twice a day you enter a position and exit it also just means that the educator has no idea about risk because risk can be hedged out overnight risk can be hedged out for months with assets that are correlated next myth you can make a monthly income from trading well we know that not that's not that can't be true why because you need volatility what's what's the big one of the big educator slogans make $10,000 a month trading the International forex markets get the life you deserve well what if the forex markets don't move you're not making $10,000 a month trading the International forex markets you're losing and they're actually right you are getting the life you deserve because you're an idiot but what does it mean if you believe that narrative it means you're a guaranteed full it means you're gonna chase the monthly income you're gonna trade all the time chasing the income and what happens if loads of guys chase the income well you get an income it's the inversion narrative trading is easy you just need to follow a few lines on a chart technical analysis here's some signals follow the lines buy here sell here buy here sell here what does that do guaranteed trades it's the mice hitting the pedal trying to get a piece of cheese psychology is the most important thing in trading if that's your only narrative you've got nothing if you've got a strong mind you'll be good at risk management and make money if that's your only narrative you've got nothing you don't have a trading strategy all you need is risk management to be a good trader nonsense you need ideas if you've got amazing ideas you can be a terrible risk manager and still make money next narrative lifestyle messages get the life you've always deserved one day you'll own a car like me what what are they trying to do there they're trying to just distract you away from the reality of the industry and the realities of training with hopes and dreams and they're not living that life it's a fake life because they're not even real traders they're fake traders and if you remember right from the beginning we looked at boomers and Gen Xers and the problem with pensions everyone knowing that they can't retire this is the crux of the problem when desperation from the middle class fools meets conflict of interest so just two sides of the equation when desperation meets conflict of interest only bad things can happen it's all designed to distract your attention away from what's important and they're going to go to extreme lengths to convince you otherwise the inversion narrative is huge outside the United States much more so outside the US but what about inside the US we've already mentioned this in the example we about how the Commission is not paid as a percentage it's a flat rate but there's still the brokers they're only going to push the inversion narrative because they need a brokerage platform to put people on to legitimize themselves because if they have the branding of brokerage platforms behind them and they're working with them and they're their introductions have a place to go to it legitimizes their they need a home they always need a home and obviously you've seen we turn the tables on the broker and we've got 370 guys globally when you've got a lot of guys who do quite well under you provide a coupon business the broker likes you and you also get significant community leverage because if you have a hundred guys on a platform and they do well and it's a coupon business and you've provided a business hedge to the broker do they want to lose them of course not so what happens at the Institute when we want something from the broker they become our because they don't want to lose a hundred clients we've turned the tables so what does it look like in practice the inversion narrative1 IB Agreement I don't think we have to beat that drum again but one thing you should absolutely do if you go to get taught by someone in the financial market who professes they're an educator and they're good at teaching and they're a they're a guru trader ask for their IB agreement if they're introducing you onto a platform the contract has to be in place it's illegal for the broker to not have the contract in place so if the educator won't give it to you where do you go well first of all what's the message if you won't give easy what's the message from the educator if they say no I'm not giving you I'm not giving you a copy of my contract they've got something to hide or they don't have a contract which means it's illegal so either way it's bad where do you get it from well actually contact the broker and ask for the the email address to their compliance desk under regulation they absolutely have to provide it to you they have to they have to have full disclosure of the relationship with the educator so contact compliance and go behind the educators back that's how you find out if they're incentivized by volume and frequency regulatory history is a big one there is actually a real definition of what a professional a tourism so if someone claims that they are or have been a professional trader you can find out with a few clicks of a mouse why because if they've been a professional trader that the definition is they've performed a controlled function and the controlled function in all geographies is trading other people's money investors money so investors will be in a hedge funds pension fund but also investment banks the investors are the shareholders in the bank and the guys at the bank trade the shareholders mate they control the balance sheet so they're a there they are a custodian of third party capital and they have to be regulated what do you have to do to get regulated you got to take your exams and there's a public record everywhere in every geography there's mine FCA register so goldman sachs Lehman Brothers JPMorgan regulators are control regulated to perform controlled function of trading other people's might and wool wood consultants which is a small firm that we had four guys and we had to be regulated because we traded each other's money very straightforward another easy way of finding out is if you know someone who's got a Bloomberg subscription if you know someone who's got a Bloomberg subscription just ask them to type your name into the search field or the name of the educator and then click on I think it's eight career and it comes up with the full career of the person who was a subscriber to Bloomberg now it's difficult for retail because it cost twenty five thousand dollars a year but Bloomberg records the career of professional traders and professionals in the market not hard to find if you do a bit of digging that's online Creole joins JPMorgan equities trading team that's online as well so at Lehman before you can literally do a little bit bit of digging around and find out if someone has actually been a professional trader in their career it's not difficult but people just don't understand what the definition is between a professional trader and a retail trader this is Raj one of our mentors in the u.s. regulator in the u.s. is FINRA so Raj was the head of options trading at Bank of America head of options trading at Nomura quite a few places before but he's the youngest managing director at Bank of America at the age of 29 and run options at 29 years old so a bit of a player knows what he's talking about it takes five minutes to find that online five minutes here's the rest of our mentors so Tristan Chris Cathy's over there Jason McDonald sorry I had to put your middle name in her Ben Berg green who's over there his gem who's arriving tonight he should have just landed actually he lands at 8:30 they were doing a conference at the weekend Hashem you can't get it online because Nasdaq Dubai they don't record publicly online but we have the certificates because we only hire guys who have actually been professional traders so you can go to any of those links and you'll find everyone's background now none of our guys have to be regulated now why because we don't perform controlled functions but the point I'm making here is this is if you are being told by somebody who professes to be a professional trader or has been a professional trader all you have to do is check and what happens if you draw a blank or you can't find it what happens if you ask them to prove it and they can't what's happened you've been told by a retail trader that they are a professional trader or they have been a professional trader so what does that mean you'll be potentially taught by somebody who is exactly the same as you just because you have access to a brokerage platform or a trading account with with a couple of thousand dollars in it and you trade every day it doesn't mean you're a professional trader or have been a professional trader it's like me going out into my back garden everyday and kicking a football and saying I'm a professional footballer Barcelona are not signing me up next week and I should not be teaching football it's pretty straightforward so anyone can do their research and if you don't you're actually being really irresponsible all you have to do is check the regulatory history so check for the IP agreement check for the regulatory history the vast vast majority of trading educators in the market have absolutely zero professional trading experience they are retail traders pretending to be professional traders and it takes one check so now you know the definition if they have no status no history having a controlled function of managing other people's money it means they've never been a professional trader and they can't claim to have been one it's a binary outcome you can't get a little bit pregnant you're either a retail trader or a professional trader you either pregnant or you're not they're just pretending so they'll have the IP agreement they'll pretend that they're professional traders how do they pretend that they're professional traders but we live in an online world and they'll create completely manufactured backstories of their lives the most common one and I like this word it's a German word wunderkind er the wonder kid the kid could that came from nowhere and usually the lie is they turned an amount of money like ten thousand dollars into a big number like over a million the Wonder kid turned ten thousand dollars into a million now why is that why is that convenient because everyone could have fooled ten thousand dollars to open a trading account most people in the Western world can just put it on their credit card so it's the perfect story to get people to pay for education and put ten grand in their trading account and it's simple but for people to understand oh you've turned ten run into a million fantastic I want to do that too follow a few lines on a chart the other most common one is if older guys they'll say that they've worked at hedge funds or investment banks or that they work at a hedge fund now or they run their own hedge funds there's complete nonsense if they did work at a bank it's probably in the support function and they'll have no control function so they'll be working in IT or operations or even working on the trading desk in getting the waiters coffee if then if they haven't been regulated to perform the function they've they've been at the bank and not performed a controlled function so it means they were in support the hedge fund one is very disingenuous because retail traders have been picking up newspapers and watching TV for the last decade reading all about these whiz guys in the market called hedge fund managers and apparently according to Charlotte and trading educators all you have to do to be a hedge fund manager is open a retail brokerage account and put five grand in it so you have to do and you can call yourself a hedge fund manager wrong a hedge fund is a very very specific investment vehicle with very specific parameters and moving pots very specific infrastructure and you need five things to be defined as a hedge fund you need an offshore registered fund 80% of them are registered in Cayman Islands you need an onshore management company so that's usually in New York London Geneva Singapore Hong Kong Sydney the offshore fund you have two charges you have the management fee so the offshore fund is charged by the management company a fee to run the assets play you and then you have a performance fee so it's usually 1 or 2% management fee 20% performance you have a third-party administrator so what they're doing every day is making sure that the management company is implementing the agreed mandate from the offshore fund for the strategy that investors have invested in you need a prime brokerage agreement with a top 10 investment bank no investment bank will look at you unless you've got 30 million dollars commitment up front total waste of their time investment bank small clients they want big clients who are going to trade and you need a seriously strong track record minimum three years probably five years obvious question why don't we set up ahead run well it's the wrong way round we are not the hedge fund taking investors money to make investors rich we are the investor so the front door of the Institute there's education but we're also trading our own money and we have 40 trading accounts within the Institute and if we find good people we seed them on power of attorney with real money and they get to trade our money now it's not a requirement you can just exist in the infrastructure and be good and join the community and help everybody out that's fine but that that's the way we look at things we want to invest in traders we don't want to take outside money and if you look at these guys the weathered faces of the mentors over here and mine we've all been in the industry for years we've done our time when you wake up at 5 o'clock in the morning for 10 15 20 years to make other people money and to make shareholders and investors richer and you make a lot of money yourself on the way when you made a certain amount of money you don't need to get up anymore you can make a lot of money by doing not not not a great deal so all our guys are retired and we just trade our own money and as you've seen hedge funds are a very specific investment vehicle how much does it cost to set up a hedge fund structure over a million dollars if you don't need it you don't do it it's stupid it's vanity / sanity so we saw manufactured backstories IB Agreement regulatory history manufactured backstories what about manufactured trades and deception you'll see this a lot in the online world you'll see lots of educators active on social media posting screenshots of charts and this is a sensitive essentially hindsight trading so for example posting a picture of a chart on social media with an arrow that points here and an arrow that points there saying I bought it here I sold it here congratulations well anyone can do that anyone can pull up a chart and say I should have bought it at 5 and I should have sold it at eight it's just so that's hindsight trading what about predicted trading predicted trading is very disingenuous because people who don't understand the industry can fall for it very easily so what about posting a chart before an event with support and resistance and saying prepare for the big move and then afterwards you actually get a screenshot of a real trading account with a showing a profit of say three thousand two hundred forty eight dollars with a narrative next to it that says just made three thousand two hundred forty eight dollars it's only 10:00 a.m. that's me done for the day I'm off to the beach this quite literally is the oldest trick in the book and it's been going on since the nineteen twenties they've got two trading account they go long in one and short in the other and they post a screenshot of the one that makes money and it's the oldest trick in the book because it actually comes from brokers because in the old days brokers were advisory brokers they would advise their clients what to go long and what to go short in the market and if you've got a hundred clients and you're an advisory broker and this is going all the way back to the 20s do you tell all your clients your 100 clients if you have an idea to go long do you tell all of them to go long of course not you want to grow your business to 200 people so you tell 50 to go long 50 to go short 50 of them make money 50 of them lose money and then the guys that lose money you help them on the next one and you grow your accounts from 100 to 110 130 200 it's the oldest trick in the book all that's happened is it's big it's just become modernized by the educator who is the broker in disguise that's all it is and this is why basically any professional trader with any respect for their career will never post their trades because they will lose all of their gravitas all of their respect in the professional trading community because every professional trader knows that they're probably bullshitting because they know all the dirty tricks so there's a side of the industry that's totally opposite to everything that you experience as a retail trader but it also breeds a dependency culture as well which is exactly the opposite of the way traders are taught in the real world like professional traders so people signing up for example are too hot stock lists here's the top 5 stocks today here's the stocks in play here's the potential news get long get short get long get short what's happening there that's the educator pushing the inversion narrative because they're working for the broker indirectly and what you doing you're depending on those lists or those ideas every day to try and generate a P&L for yourself try and generate a profit yourself it's the total opposite of the way you need to be taught you need to be coming up with your own ideas and generating your own ideas manufacture trades interception again deception this is how the online world works with people who have a false narrative they know everything they say is but they have to give the impression that other people believe it so you get sucked in so there's two things you need to watch out for sock puppets and meat puppets what's a sock puppet well put a sock on your hand and speak you open four hundred social media accounts different email addresses different names what do you do you pretend to be people commenting on all of your posts and you're logging in to eighty of them for her day and making the comments there's a huge amount huge human online of complete nonsense and people get sucked in by it what's a meat puppet a meat puppet is a sock puppet but it's a human they're hiring someone in Bangladesh China India wherever Russia to log into the accounts and do it for them and they'll upvote all their comments to get them to the top so it looks like there's a narrative occurring that believes their so then people get sucked in they build fake websites so they'll comment on other business people and then comment on themselves that's a sock puppet fake website fake reviews and they'll give reviews on themselves obviously that are favorable and then reviews on their competitors that are not favorable it's lit this is how they all do it or they can literally engage in actual criminal activity which is creating equity curves of trades that they claim they've done going back in time which shows them making money over time and all they've done is gone into a spreadsheet or the backend of a website and typed in by at five dollars sell at five dollars sixty five and it just updates their equity curve and it's not audited by third parties it's not audited by accountancy companies they don't have administrators it's self administered and it's actually criminal activity because what you're actually doing is you're miss selling financial performance lifestyle and social media posts this is that this is the stuff that that's designed to distract you so drastically over emphasizing the conflation between trading and lifestyle so of course if you know what you're doing it doesn't matter where you press press the button it's less than 1% of what you'll do as a trader it's the other 99% that's important you can't be sitting by a pool coming up with 10 trading diets at 10 really good trading ideas per week you actually do need to work you can press the button when you're lying by the Swingle but you have to do the other 99 percent of the work and you can always tell an educator that's had no trading experience because they'll constantly push the lifestyle narrative it's creating the hopes and dreams and how do they do it most typical ways renting houses on Airbnb and doing MTV Cribs style tours of their houses but they literally rent the house for a day and they don't own it it's rented for a day or they'll rent a super car for a day and in the house and in the car they'll film all day and collect three months of content and drip it out over three months so they built archives of content to drip out the inversion narrative possibly my favorite is withdrawing cash and parading it saying that you made it in training that's where you get it from prop movie money store there's a million dollars on sale for 450 bucks in new style aged look 100 that's where they get it from and of course when you wrap all of this up together the IB Agreement the no regulatory history but telling you they're a professional trader when they're actually a retail trader the manufactured backstory the manufactured trades and deception practices that they engage in and the lifestyle and social media posts of course the cherry on the top of the cake is the reason why they do it is because they want to inspire you so you can one day be like them so you open a trading account 20 days later you're gone congratulations but there's other areas of trading infrastructure where IB agreements are very important

Channel: InstituteofTrading

Views: 84,562

Keywords: Anton Kreil, Raj Malhotra, Jason McDonald, Chris Cathey, ITPM, Institute of Trading, Goldman Sachs, Trading, Retail Trading, FOREX, Instutrade, Institute of Trading and Portfolio Management, Ben Berggreen, Stock Market, David Perlin, Ross Williams, Anthony Iser, Million Dollar Traders, Hedge Funds, Investment Banks, Training, Coaching, Mentoring, Business, NYSE, NASDAQ, Day Trading, Swing Trading, Hichem Djouhri, Stocks, Commodities, Interview, Wall Street, Finance, Millionaire, Billionaire

Id: GK3-DbuwE0E

Length: 30min 6sec (1806 seconds)

Published: Thu Mar 22 2018