Million Dollar Traders - Part 1 | British reality TV Series & Course created by Lex van Dam

this is Lex Van Dam a man who's about to make the biggest gamble of his life he's bare 1 million dollars of his own money that he can turn eight ordinary men and women into successful City traders what I want to do is like wanna take people we have no previous trading experience and teach them how to trade I wanna give them all the tools that I think are necessary to do this then I will give them some of my money and I want to make sure that they makes a warm up a top fund manager he's gonna set up the world's first hedge fund stock only by complete beginners with some training guidance and the promise of each being rewarded with a city size bonus at the end they're all hoping for success is it make money be correct no stress and if they lose money then there will be stress from all walks of life these novice traders have two months to show they can make it in the city I've locked in a hundred pounds but what none of them realize is just how hard it's gonna be I've seen really mentally strong people become psychologically destroyed by the world of trade or enlightenment because in this game every decision cans it's just open 7:26 what if it's at seven quid in an hour you're gonna sell them there yes right well if you're gonna sell them at seven quid in an hour sell them at 7:26 now think about what you're saying it's unbelievable I don't really know what I'm doing as if it wasn't hard enough they will have to play this game as the global markets plunge into the abyss 9-under quit like that as the pressure mounts will everyone make it to the end it doesn't matter anymore you've had your chance you cannot let emotions get in the way if you get upset done this you last week okay I'm taking a huge risk here and if they don't care enough then I'll make sure they care can the beginners become profit-making machines or will the cost of success be too high for their liking and send this million-dollar gamble into freefall there's a fine line when it comes to being human beings yeah and now you see all the people in the room responding to that city or no city [Music] [Applause] [Music] [Applause] [Music] with 1 million dollars of his own money at stake Lex Van Damme alone will choose the novice traders it has to be like a diverse group of people but they do need people who who are able to work very hard and were able to cope with a certain level of stress after 16 years as a successful trader he knows exactly what he's looking for to qualify for a place the applicants only need two qualities the ability to handle stress and be good at maths for the 32 times 32 32 times 49 1214 what's the most pressure you've ever been under I thrive under pressure actually what is 32 times 32 my brain is just not functional 9,900 42 we you screw someone over to get ahead I wouldn't like him if I had to order whilst thousands applied there are only eight places other 32 times 32 the first to impress Lexus secured a spot thousand 24 is 36 year old retired soldier Mike to Val I'm a good bet I've got a lot of lot of good skills and I am raw talent after 13 years in the parachute regiment Mike reach the rank of major before retiring to live in Jersey I'd been thinking about leaving the army every day since about 1996 you know I done a long stints of Afghanistan and I just thought you know can I can I do this again I've maybe had my time of selfless commitment now I just wanted some filthy lucre joining Mike are the remaining seven successful applicants who will all undergo a rigorous training program we've got eight weeks here so we need to make money over those eight weeks so we need to think about what's gonna drive stocks over their period if you can predict tomorrow's newspaper you'll be very rich nobody asks you to be awake every night but if you sleep really well every night there's probably something wrong that's the most you'll hear me speak ever from Lincolnshire 34 year old shopkeeper amit japan Putra sees this as an opportunity to get himself a better life I mean just walking out walking out to the street you know it's different completely obviously you know instead of selling Mars bars and tea bags you know I'm probably going to try and sell shares and Vodafone's all the loud so yeah it's different because we'll find out more and see if I can cope with it and see if I can understand the subject a bit more the group have just two weeks to get up to speed and will be trained by leading city experts there's no right way to trade there is no rulebook what there is is different people finding what suits then and makes money they'll cover everything from generating ideas we're interested in trading on the stock Benfield BFD could you give to phoning up and placing a trade with a broker so you're 45 or 3/4 to 46 or 3/4 quite fence are Samaras Holland from Croydon Oxford educated IT engineers Simon Bru is keen to learn as much as possible his grand plan is eventually to trade from home using his savings and provide a more comfortable retirement for himself and his wife well I'm just hoping you'll make our fortune anyway the deal is basically actually I'm seeing this very much as an alternative not career whereas once this is passed by yes well just don't do it Nick listen the team are also taught how to decipher highly complex technical analysis basically what it is it's a mathematical representation of momentum in the market as well as essential insights into trading psychology in all aspects of human activity there's a tendency towards overconfidence once you've understood the rules of the game the challenge is controlling your temperament 26 year old cleo folks is an ex vet who lives near Stourbridge in the Midlands at the moment she's working for her dad in the family firm a 300 year old engineering and property business my family has got money but that is no reflection on me because it's there it's not mine and that's my opinion to life I've lived on my 20 pound a week budget I know how to budget money is a drive for me I'd be I'd be lying if I said it wasn't soon they'll be trading with genuine money and the profits and losses will be real exposing the novice traders to a whole new level of pressure [Applause] the prospect doesn't scare Emil Coleman a 30 year old fight promoter from Toxteth in Liverpool it's about validation people assume on the offer this is me and many different things and I want to be able to prove that maybe I can be a trader as was the British Chambers of Commerce says the economy faces a serious risk of recession fresh concerns about the health and banks around the world have again undermined share prices at one point shoes with the foot see down over 80 points a day one Monday mornings 5:00 a.m. with training over and the credit crisis looming their lives as traders begin entrepreneur single mum Caroline Taysom is leaving her four-year-old twin girls in the care of her mother to travel from Winchester to the city I think the skills that I gained you know self-control stamina a determination real desire for business success are gonna work incredibly well within the trading arena 20 year old okie a McQuaid a from Tottenham is part way through in economics and maths degree the nature of the trading is that money can come and go in such a flowing way that almost like a living breathing thing it's important that you keep order the rain feel that you can control it highly ambitious these next two months will reveal whether he has what it takes to become a city trader finally environmentalist dr. Sam doobie the unlikeliest of all the traders is taking part to find out whether it's possible to trade ethically and still make money the good trader has to have such a good idea of what's happening in the world has to be so aware of the wars that are going on in Africa the droughts that are happening India the floods in America yet the only focus is on the financial aspect of it and that's a real problem the eight rookie traders have been given their very own trading floor in the heart of London's square-mile complete with computer terminals plugged directly into the world's stock markets they have everything they need to start trading and the world's most scrutinized but least understood institution will be revealed as never before their first two weeks of trading will be critical the million dollars for me is very significant and I can't afford to lose it if I lose it it's a disaster if I lose half of it it's half a disaster which is still a disaster if I lost 5% it's humiliation if I lose anything it's terrible how's everyone feeling first Molly early start although Lex Van Dam is supplying the money he's appointed a supervisor to be his eyes and ears an eight-year veteran of the city Anton creel retired from trading two years ago at the age of 27 a millionaire I know the feeling around the table is quite laid-back in like quite lay safer this and because it's the first day but like you've got I mean there's the news and stuff in the morning you've got to be really military and like really you know get into what is going on in the world you know and then you can try and make sense of it right okay but you know the hours between six and seven thirty are absolutely crucial to your day when markets opening in one minute and let's go make some money these eight novices will operate together as a hedge fund if they're smart enough they should be able to make money where the share prices go up or down but before anyone can get a bonus the fund will have to be in profit at the end so individually they must invest wisely because all decisions made will affect everyone especially Lex Van Daan busy running his own hedge fund Lex will phone Anton regularly to be kept up to date write down opinions right you don't tell them what to do I mean it's hard to know if these people actually really understand that this is not a game but this is real money this is my money I've worked hard to earn it and I don't want a bunch of people don't care to be so diverse you know I'm gonna suffer they will suffer with me so you're all this you know you need to make sure that people appreciate the risk right she's all right speak soon yeah [Music] there may be a public perception of what a trader actually is which is loads of money Ferraris wild parties lots of women drugs carry nails all the time blah blah blah well I dare anyone to try this for a month see how much it affects your life you seriously do earn your money the big firms get their pound of flesh you know and you know these guys they've got a lot of learn in a very short space of time it'll be interesting over the next couple of days who actually has the confidence in themselves to take their trade idea and put the trades on here's a baptism of fire for the first two weeks the rookie traders have been given 25,000 pounds each to play with the markets open and through brokers they finally get their chance to trade the world stock markets I know the car sit on the fence can be for whatever I say things I which I need to get over you know my brain is not flowing like it should because I'm thinking about it too much I think the biggest battle is with your own mind you could falsify so much information and just generate an annual and you had waken it through because you can kinda justify anything see yourself and speak to someone else see what you thinking but also me it's gonna be you who you know will going put that trade on and will kind of be a measured on its success or it's not a success 16:46 be 63 year old Simon is the oldest of the novice traders and has spent the last 30 years working as an IT engineer for IBM I love knowing how things work and why they work and you know I've got an asset of statistical knowledge to be able to cope I hope and therefore I'd like to give it a go okay right I'd like to buy please 400 British gas he's the first to call the brokers and make a trade okay 1204 fine thank you very much good bye [Applause] spend some money right I took the punch decided to place the trade for British gas I'm hoping it's going to rise gently over the next few weeks its lowest today was 1203 1204 it's just gone down to 1203 what it's in danger of getting neurotic about this but you just have to move on and concentrate on the rest I'll probably remember this the trading decision for the rest of my life you know it's the first one I've made it's big excitement and let's hope it's been successful to control risk the traders can only invest 5,000 pounds in anyone's stock the leading British gas is a safe bed Simon's invested the maximum allowed eg he's gone right up to his maximum position size immediately if you do that in a portfolio as a professional to me you have absolute maximum conviction that this stock is going up right and it's almost like you can't be wrong if the stock does nothing for three days or goes down for three days consistently you know it's gonna drive him absolutely mental oh look at this standard 1186 that's awful I keep saying I mustn't let it upset me but of course I keep thinking I wonder what it's doing and that is in fact distracting me from the main job I'm supposed to be doing the main job I want to do which is look for other trades that will actually perhaps compensate in performance right I'm going to close this chart and concentrate on my next job if I you get neurotic staring at it and that's definitely a mistake oh this is awful 1185 oh my god it happens the code hm can I get any tears of that then please by the end of their second day several novice traders have taken their first dip into the markets I'm looking at admin can I get a price on Domino's please do I can I sure that if it goes to one eight nine please ultimately they have two methods of trading available to them buying long simply making money if the share price increases or selling short a complex deal that involves borrowing selling and then buying back shares this allows the trader to make a profit when the value of a stock goes down Titan I'll take LM 42 year-old single mum and entrepreneur Caroline has always wanted to work in the city fantastic although she's determined to succeed she finds the idea of selling shoe or profiting from the losses of others hard to stomach it just doesn't seem all that you can sit here as a trader and wish that the value of the company would would go down so that you can make money on it it's really am morally quite bizarre thing to do yeah and somebody yes but a lot of years building up the company to sort of lose the lose of control that you have over that just because maybe another company in your sector is some you know it's performing particularly bad and you get pulled down with them it's just seems horrendous that's a real bugger former vet Cleo is less concerned about the ethical issues of trading shown during training to be a highly intelligent structured thinker it's believed she has the greatest potential in the group I think its environment that I'd be really good in it's fast paced which I thrive in it's pressure driven again which I thrive in and I love the way that these huge macroeconomic issues impacts on all the stocks and this type of thing and how everything is interrelated I just find it really really interesting it's a global event that gives Cleo her first trade let's go straight to our top story this morning investors react to mounting instability a missile test in Iran causes Middle East instability and as a result oil prices begin to rise sharply it spells bad news for heavy fuel consumers jumping into the market Cleo's quick to short sell British Airways betting their share price will fall as their profits get hit by rising oil prices it's a good deal but her caution is getting the better of her she's only traded 200 shares by far the smallest investment of the group you know it's more it's more I wanted to just get through it I know that sounds awful and I know that's completely the wrong rationale but I preferred to place one small little trade the first time I've ever dilly-dallied with anything like this oh look see it's down I'm so sorry I'm gonna keep myself under wraps now sorry guys really sorry I'm gonna control myself oh my god it's just gone again I'm really sorry the times wrong - five years that perturbations on one side the life of the trader is all-consuming long days begin with very early mornings the team is expected to be in the office by 6:00 a.m. working out their strategies well before the markets open at 8:00 [Applause] their screams come alive bullying shares turning red rising shares bloomed take the fair fight on this shorty about forced Iraq everything comrade abided by after three days of trading the team has so far only invested 10% of the 200,000 pounds currently at their disposal but it's not the amount that's worrying it's the commitment of some of the traders if you meet with joy oh yeah what price of BBG group in the auction 11 my stop is eleven sixty there eleven fifty-nine now right so they in the auction you're out mate I think you'd better check away from his desk when the market opened Simon is unaware that his shares in British Gas are plummeting and losing the team Nani you may recall I place the trade yesterday on British Gas right so what was the closing price please Simon shares have fallen so sharply they've been sold on automatically 11:58 right okay known as a stop loss this is an order with the broker to close the trade if it loses too much money blue and overnight Simon's trade has cost the team two hundred and fifty pounds just forget about it no no I'm not stressed I just want to explain why I did what I did to see whether I couldn't I should have done anything differently it'll have a proper chance of Awesome they said oh yeah good morning no absolutely don't worry about what's up Anderson no no I haven't no honest as it stands no as it stands now you've got no positions that's right he sewed on the rates um I do slight is the slate is clean so start again yes absolutely no I very much in that vein cool or a little bit concerned about his behavior very lackadaisical and right you know I had to shout over to to be honest with you I'm just a little bit pissed off and I just don't you know you cannot behave like that on a trading desk you know it just shows it just shows a really bad attitude towards investing somebody else's money in the market if you behave like that in the real world in the real world of trading like your career is gonna be very short-lived there are however some within the group who are showing real promise both fight promoter Emil and Sam the environmentalist have made money you know I feel a bit ill when I place one of these things I really like it I don't find that pleasant mashter I find a really uncomfortable feeling yeah yeah and I kind of like it makes me feel exactly like I felt when I was a kid lying I think it's just because I'm making a decision based on a best guess and I'm I'm not used to guessing I mean yesterday you think this shows the fallacy of it but the fact of that like you know in reality no matter how many charts we look at how everything else we go and how we feel that's exactly no gambling is why I'm not gambling this yeah yeah there's only one person left in the group who is yet to make a trade having just left the army Mike now wants to be a professional trader half the game here is his timing you can have the world's best trade if you like but if your if your timing is wrong you don't make a profit or worse you make a loss beginning to think I should maybe just grow up here and get on in there and then just just work it as it goes but um it's just get that you know it's just like parachuting it's taking that first step that's difficult and they're actually after that you find well until you got to pull the red handle maybe I don't want to have to be pulling any red handle so that's the thing you've got to take risk to make money of course you can lose but if you're not invested you can not make money it might as well just be in the bank earning 5% it's concerning because you can not succeed in this business behaving like that you'll never make money the standard mortgage bigger to be turned off to companies they own or guarantee about half of what trillion dollars of US mortgages take a look at Freddie Mac it is off by more than one-third losing one third of its value this morning only a week into trading and the novice traders are dealt a heavy blow u.s. mortgage giants Fannie Mae and Freddie Mac hit the rocks and the world's markets real in shock the trading screens turn red showing a massive fall in shares across the globe as 35 billion pounds of investment vanishes in a matter of minutes I look at the dollar versus the euro and the pound now right the dollar is likely if this continues to get smoked what in the end the taxpayer has the plug like yup right the US government has come out and said that if Fannie Mae and Freddie Mac go to zero then they'll guarantee the debt the markets taking it negatively because the government's basically admitted that there's a possibility that they could go to zero right and if they bail them out we're talking hundreds of billions of dollars right and who who ends up paying for it the US consumer I mean so anyone who's been in the industry a long time this is like proper scary stuff you know and the entire basis of the US economy changes if this had happened I mean the u.s. is over for a general if this happens potentially this is why the markets are so volatile this is why the world is in a complete mess at the moment and no one knows what to do because there is no light at the end of the tunnel the global credit crisis has spread to British shores and Sam the ethical trader in the group spots a chance to make money Lester has now found a buyer allowing the company to assure of his finances after losing two-thirds of its value over the past year no Spain's biggest banking giant Santander has announced the takeover of Alliance & Leicester quick to react he buys a thousand shares they rock it and make the team an instant 200 pounds 328 C hello he's just sold them superstar week 332 and a half yesterday I read in their story on Alliance ernesta so um I bought some shares of them that made the share price go up and I told them I made some money from reading a new story I didn't do anything um that's that's the nature of the game really you're not doing anything impressed by Sam successful investment retired IBM employee Simon also jumps into financials hi okay not sure yet I've just I placed earlier a buy limit order on Bradford & Bingley okay it's just being filmed so oh cool okay head for the best all right buying Hong into Bradford & Bingley he hopes to see their share price rise but less than an hour after he places the trade its share price plummets very much long in Bradford & Bingley didn't work really sorry about that it's very frustrating this is just unbelievably complex business you've got to keep your emotions in check you've got to do the analysis you've got to do your homework there's so many balls to keep in the air and maybe different personalities are better at coping with short-term decisions and maybe I'm better to concentrate on a few long-term decisions long term trades rather than leap in on the basis of follow me as it were which is what really what I do be prepared for the Bingley Simon's decision to buy into the UK's largest buy to let mortgage provider at a time when many are going to the wall obviously ridiculous what hasn't gone unnoticed by Lex and Anton clearly is Minds just in the wrong place like if he's not there like it's not just him I mean there's other people in the group that just the whole the general level of focus of the group it's just too low like these guys are just not intense enough of greater concern to Anton and Lex is that those who should be showing the most promise are also struggling oh hi it's clear from trace again that link hi Luke I'm put a sell order in with Rupert for GSK GlaxoSmithKline feeling the pressure Cleo has sold all her stock and now has nothing invested stupid idiot folks I think um I think there might be a bit of an issue with her with clear because she's just tried their out of her only two positions which would since work to a tiny anyway her no she's got a zero risk no she just read the rethinking it not maybe but I think the way she did it she lost companies lost confidence I just take my loss and it's gone down you know what I don't like trade it if you wanted to generate ideas and you want the book to go up and your moments be confident so you want them to be upbeat but at the same time you've got it you know you've got a they've got to be disciplined because some of the stuff they're doing is not so far the team have only invested 40,000 out of a possible 200,000 pounds they've been trading in the worst market conditions seen in years and although they've had some successes overall they've yet to make a penny it's definitely been noted over the last couple of days that some a lot of crucial things in the market that's been coming else has been missed by people things like being on the desk when the market opens popping off for 30-minute lunches like it's just absolutely not acceptable I had in eight years two lunches outside the office okay as a team to make money you really need to be here because if you're not you don't stand a chance we're in the worst trading conditions that we've been in for a generation but if you want to give yourselves the best chance of making serious cash I'm beating the professionals you're just gonna have to step it up like massively get them take it to the next level okay nobody ever said this was easy but God it is a lot more difficult than certainly I never expected extremely difficult I think it's just gonna be quite a steep learning curve for it also this is no one's no one is doubting that whatsoever Dave all right thank you you ever thought about you you can pass again it's difficult we know you had anything try any harder pencil no but you can't know I call hey let's leave it Simon you definitely look no let me place my old try rather do that right now okay let's talk about it later [Music] the end of week 1 and so far retired soldier Mike has only dabbled in the market Mike knows he needs to make money at least to see a bonus and with aspirations to become a full-time trader he wants his first meaningful trade to be a statement of intent I'm just extremely extremely competitive I wear a heart rate monitor so that I don't run too fast sometimes I have to rein myself in because it you know it forces you to places where you don't you know you don't really want to be like racing my girlfriend getting dressed and things like that I picked of 105 105 6 or 105 75 this trade idea is a highly controversial and risky one just looking at the opening prices on H boss there is a you know people are staring at each other you know across the city you know who's gonna win this game of bluff a cash flow crisis for Britain's largest bank H boss has forced them into a rights issue which means going to their shareholders and asking for more money Mike has calculated that the rights issue should go well sending its share price up catching okay that's a good snot that's that's the side of the boat we want to be right but to cover his position like Mike has decided he also needs to short sell German bank aliens as the underwriters of the rights issue they will have to pick up any shortfall a potentially huge liability which could see their own share price fall this trading strategy is known as hedging it's the essence of how a hedge fund works if he's right he'll make more money on this deal than everyone's trades put together repo Heights market traders hey dear me LCD the 110 110 23 euros right that's right sold 46 Allianz at 110 spot 2 3 euros H boss HB OS Ln bought ya one four one nine 278 spot two five that's right lovely nice doing business really make that key mate Cheers well done I mean there's risk in every trade but you know I've worked through the numbers and my you know my downside risk is it's far smaller than my upside gain and if it comes off well you know we'll make a lot of money for the team [Music] the second week of trading and as world markets become more unstable the pressure to make money intensifies the government has come close to admitting that the fiscal rules that set itself for managing the economy can no longer be met about the big month has kept interest rates unchanged at five percent as it struggles to Astoria frequencies play assisting no decision had been taken on rewriting debt levels were careful not to dismiss the idea everybody's thinking of the credit crisis at the moment and you know basing all the ideas of this credit crisis yeah but its total total risk it feels like we only look at about right yeah everybody's obsessed by this thing then the other thing is like yes tell people if I keep trading in such small size you must make any money again they're not gonna get more money and they're not gonna get paid at the end of the period because they haven't made any money because reborn was fine for this hedge fund to be successful and make money everyone must invest their cash failure to do so could result in their removal from the team at the beginning Clio was highlighted as someone with great trading potential but after starting with immense self-belief her confidence is collapsing [Music] with no trades in place she must get invested to stay in the game I think actually this [Music] Hey idiot [Music] [Applause] [Music] why don't I just bloody buy it she's actually really scared about trading which is a little bit concerning I think I might have to go and speak to her later take her out of it out of the office or something because yeah I can see that a heads a bit all over the place and she's really scared about pulling the trigger just can't commit to it you know you don't look it's very very difficult business okay you know it's bad it's hot if it's difficult affectionate just glad to take that abstract full process and those ideas those trade ideas yeah and put them into practice and then manage risk okay they're two really difficult different skill sets but you're indecisive because you're a perfectionist right and you can't have indecision in the business I know telling myself they'll go nothing ventured nothing gained to put on just pity on and he's fit they're funny about just accept or not accept that you cannot be right a hundred percent upon its possible it's absolutely impossible [Music] I'm frustrated I'm frustrated at my lack of knowledge massively frustrated by it and that spills over in this you know this this sense of being and I honestly I feel like a lamb to the slaughter at the moment all right now now I feel pressure that I've really got to find trades to put on and you know whilst it's good to have a bit of pressure in this uncertain market I don't feel that that's necessarily the best thing because the last thing I want to do is put on trades just so I've got positions but I'm almost feeling like I'm being pressured now to put on trades purely for that reason just so I've got positions just so my capital is invested so when the market is this volatile I don't think you know I think unless you can really really read it then your benefit fool really Oh God look where it's gone no wonder it's for his third trade Simon believed he was playing safe investing three thousand pounds in insurance company Royal Sun Alliance I've got an open position on RSA which I'm getting a bit nervous about it's had a terrible day it's some fortunately majorities in the house today I was thinking of lightening my position by buying say eight hundred that will be one third of them roughly and then lowering my stop to stay in the market for the rest right let's let's make a decision could I buy eight hundred whatever the market price is now Simon has just made a fundamental mistake to reduce his risk he should have sold eight hundred shares you've got stop-lossed on you know I go by stop-loss you've got I beg your pardon I'm so sorry Syd I've gone completely the wrong way this was what this was about ah well could she seldom came that was a mistake Simon I'm selling you sixteen hundred now is that correct correct place of Salamis 15 spot once you making a loss on this My Luck so let's just say this again very slowly you have sold 1,600 1,600 at 115 one one five spot one spot one cracker meant for you below okay done thank you Cheers in the space of a two minute phone call Simon has cost the team 200 pounds [Music] so far every deal he's made has lost money [Music] I made a small mistake so he basically [ __ ] himself he went to sell a third of the position one ended up buying it right right and then he realized what he'd done and then trot you know went to sell double the amount to get his position correct and then he bought instead of selling yeah if you say buy when you want to say sell you know it just means that you know you've got [ __ ] for brains well yeah it means you know it totally switched off he's panicked shits himself lost his mind and done the trade the wrong way around I'm pretty annoyed because like there's mistake in his mistakes yeah you have to think about what we gonna do about this yeah yeah clear was a bit of has been a bit of an issue in the last 24 hours she's actually scared of having physicians all right we were off the desk they for an hour and a half and I've got [ __ ] to do yeah because she's crying Tina okay cry for now I know someone who's never traded before who's scared of trading one week into this exercise right that's a person who can cry for an hour and a half great Bona [ __ ] for brains and the other ones crying we doing well here yeah it's Judgment Day for Mike's biggest trade the results of the H boss rights issue are in and it's not the news Mike wanted to hear H boss Britain's biggest mortgage learn to race about four billion personal rights offer to shore up its balance sheet the trouble is most so the shareholders didn't actually take up their rights to the share today share homes bought just eight percent stock on offer leaving the underwriters Morgan Stanley and Resnick Lionel was a bit of a headache underwriters would find get subscribers long somebody's long hate box yeah what are you guys yes my yeah you just come to keep an eye on the place respond because he's on it yeah with H boss falling Mike short sell in German bank Allianz isn't working either come on edge apostle despite the problems its share price is unaffected [Music] about 4% right on the brink come on [ __ ] shakin his 8000 pound pairs trade is now losing money good and he's provoked the wrath of Lex Van Damme okay thank you hey hey hey was it go okay yeah but Mike know what's going on I don't know he hasn't spoken to go long age boss you know to trade and then this is the best thing he can do was just stupid okay you know he's just sitting there in the ocean maybe the wave goes the right direction and maybe goes the wrong direction and we both know the way they're trading at the moment it's always gonna go to wrong direction I just listen I'll just go alright cool bye bye Mike I'll require to cut our position we're down about five just under six percent okay so get the cuts there cut it move on don't feel bad about it it's [ __ ] happens and this is just one trade I'll tell you many that will have Mycenae yeah come on so if you want to do that that's cool okay yeah he's gutted but like I'm looking at this personally as a trade that could have gone massively right and a little bit wrong and it's gone a little bit wrong you know he spent an entire weekend probably thinking about who walked in and lost money right and that's just the life of a traitor [Music] [Music] he'll only gets Mike H boss sell one four one nine put it in for 267 spot to five if you can do it for you okay al Vee I'm a buyer of 46 don't play me Mike's trade has cost the team 500 pounds I say yeah that's quite a loss to to take on board yeah [ __ ] is Charlie go back in and and find another one [Music] [Applause] [Music] the UK's biggest mortgage lender Halifax Bank of Scotland has announced that its statutory first half the profits plunged by 72 percent to eight hundred and forty eight million the bank blamed the loss on the credit crunch and also reported an increase in bad debt as the traders reached the end of their second week of trading they're faced with that biggest test so far we are waiting numbers earnings reports from Citigroup they're due out any second from now we'll bring you those numbers as soon as they cross we are Citigroup the world's largest bank is about to announce an earnings report in the financial world this is a global event and will have a massive effect on the world stock markets if the team properly hedged their investments the funds should be able to cope with anything that market throws in it I'd like to sell a go short with market confidence in the banking sector at an all-time low the novice traders are predictors a figure will be bad 1000 would be convinced there's an opportunity to make some quick cash they all go short great well I like to put in an order to sort mine hundred of them please I won't sell short negotiate some no no 697 7j okay also can I come I have six nine eight six nine seven bit anyway you want to sell it clicked on J yeah so short that's my biggest trade how much maybe three grands okay hi who's that the pirates the meal and okay sorry okay if you look at dominoes from with DRM DRM in total they short sell sixteen thousand shares a massive forty one thousand pounds in the hope that prices will fall but not one of the traders has hedged their investments by going along in case prices should rise a potentially calamitous mistake an estimated Carolyn we are actually seeing as we speak the futures really paring the loss is very rapidly as I look at my Bloomberg terminals you can see what the shares are doing in the pre-market are ready up by three percent so for the novice traders it's the worst news possible the figures are better than expected the markets immediately rallied and share prices rise across the board this morning short selling frenzy has left the team massively exposed and they're losing the money fast because there area clear from a position of profit the group are now facing a heavy loss like monopoly today it's great everybody just go for it it's quite it's quite it's quite a nice atmosphere actually in your face even though we're all hammered room yeah emerging money it's absolutely typical I think a lot of people got into banks because it was a hubbub about banks yesterday and everyone has got absolutely tranced on it if it was one person getting absolutely chance I think would be quite difficult but because everyone's in the same position yeah it's fine I think the mood the mood is pretty good considering they've been trading for a fortnight and so far they've only lost Lex's money okay thank you hello dr. Peter not gonna like you're not gonna like I'm not gonna like okay down two and a half burn you're joking no are you here wow you know I am actually how did you get a little bit of death I'm not the type of guy to you know humiliate people in front of a group or give people [ __ ] for not for no reason you know but you know if I have to give them [ __ ] it's for their own good because if I don't let's for walked in one day and just destroy somebody in front of everybody and that's not gonna be good for anybody the people who are doing their conquers today are people who've shorted on the open and bought nothing against it right market moves half a percent and look how much money you can lose from a half a percent move in the market you've been Muppets like you've shorted something naked from after all the conversations that we've had right I'm not on it hasn't even entered your mind to buy a UK bank against it given that financials are the most volatile sector in the world right now yeah you've got to learn from your mistakes it's risk management naked punting is for idiots and if if you're down to grand today as a group yeah and you multiply that by 45 days that we've got left you're gonna be down 90 grand on 500 grand what do you want me to do like put everyone up against the wall with a gun to their head and say [ __ ] manage risk you're trading with somebody else's money you know if this was my money I'd be so scared you got to seriously think about what you do and the risk that you're taking because we walked in this morning I don't think anybody thought we'd be down to ground this morning right no one thought that but guess what four hours later we are [Applause] this is the week you either need to make someone kill me I don't need to feel this self-worth we are under Russian invasion and the Russian occupation rights shaky Azerbaijan and Armenia the country's border day like this is gun to the head funk fine decision I will sell them nah look I'm not telling you what to do now I know you're not I say if it's legal the morality is irrelevant is that what you're saying some it's a bad world I think it really brings out the bastard in you the first time I had trauma like this was getting divorce if people walk out because they can't take it so be it continuing the city theme over on BBC full Jerry Robinson meets Britain's first ever venture capitalist and Charlie Brook has got a thing about TV shows that come with a mission to achieve and he's firing off again next on BBC two [Music] [Applause] [Music]

Channel: Lex van Dam Trading Academy

Views: 651,982

Rating: 4.8626676 out of 5

Keywords: million dollar traders, tv show, learn to trade, 5 step trading, lex van dam, lex van dam trading academy, the best trading strategies, how to make money trading, financial tv show, trading competitions, investing competitions, trading education, investor education tv

Id: oXno18pOHgo

Length: 58min 52sec (3532 seconds)

Published: Wed Jun 13 2018