Tearing Down the Retail Trading Industry

[Music] a retail trader is a trader that trades their own capital with hopes of making pretty good size returns there's not much of information disadvantage now the bigger problem for retail traders is where there's too much information and trying to process all the information that's up there it's amazing it doesn't matter where these guys come from a lot of them I've got so many shared experiences some of the things that happen to them before them in terms of their early trading careers so we're here to try and put those stories to right and give them a much better background and understanding for going forward and actually becoming profitable traders and trading as we would in a professional way [Music] first thing we do we're going to do what we call Lhasa holux anonymous I want tomorrow all of your stories where you've lost money why you think you've lost money by getting all your stories out on the table everyone will learn from them and then we move on because no one will make the same mistakes again cheers guys [Music] [Music] [Music] in terms of the infrastructure of the industry the retail trading industry the Institute has been part of it over the last seven years and there have been some quite big changes and meaningful changes so for example like in the u.s. these things that we discovered years ago called I be agreements introducing broker agreements whereby you have an individual who professes to be an expert in trading teaches retails something and introduces them onto brokerage platforms and they get ongoing lifetime rebate commissions from the trading activity of that person which obviously creates a huge conflict of interest and we've been talking up about that for a long time in the United States they were banned years ago and outside of the u.s. in the rest of the world they still exist although there's been some regulation changes over the last two or three years where those agreements have come into focus 2011/12 we were literally turning up two brokerage companies and saying okay you're putting an introducing broker agreement in front of us and we're saying okay well what if I wrote a zero on the contract and we had a lot of pushback why because the brokers actually want people to be incentivized to make people or teach people to trade high-volume strategies like day trading so obviously day trading guarantees a certain amount of trades per day which generates more Commission the brokers then came back to us and said okay we'll accept them now that was a big change in the industry because we literally invented zero percent introducing broker agreements and the effect that had was that the broker started looking at all of our students who were going on the platforms and saying well okay we get to keep all of the Commission and we don't have to pay it out so why would we pay an educator who brings people on so this kind of disrupted the whole industry so what's actually occurred in the u.s. is that retail have moved over to more leveraged products like trading options and outside the US retail traders still trade on predominantly CFD contracts the difference where they get a large amount of leverage but what it comes down to is really the same problem there's the product there's leverage but people have no idea why they're trading these products essentially and on top of that why they are using them as an instrument to represent a trade idea it's the same problem in a different rubber because what it comes down to is just having absolutely no understanding of how to generate a trade idea and then using a product to represent this low-quality reason to take exposure in an asset class and then we started bringing in mentors not just in the US but in the UK Middle East Asia Australia all around the world and that basically solved the second problem which is generating ideas so teaching retail traders how to generate high-quality trade ideas and express those ideas using the different products like options in the United States now the big key difference there is between what we're doing and what all of these so called educators out there in the market are doing is that every single guy at the Institute actually has a professional background having worked at investment banks and hedge funds and that has to be proven before they come in so they're not guys they're not guys who are public speakers they're not guys who are sales people they're not marketers so we've literally invented 0% I'd be agreements that's changed and disrupted the whole infrastructure in the rest of the world the mentors and the regular the regulatory history that these guys have in the professional world that's disrupted everything as well because now everybody now questions everything which is brilliant we absolutely endorse that because from our perspective we've got a organisation that's just full of professional traders who have the 10 15 20 year experience and have made tens of millions of dollars trading financial markets so for us it's fine whenever so on questions someone's background dead easy just go online go to the regulator's find out their background you know we literally started this from zero and if you look at our risk on a daily basis as a community right now we're typically a hundred and fifty million dollars of risk every day so you know starting that from zero and getting to this point it's really testament to what we've actually done because the reason for the success is because we've just gone out there and told it how it is so retail traders get to understand the retail trading infrastructure and people come through the Institute's who are genuinely understanding that infrastructure and who are committed and that's the place to start you have to start at the point where you really understand the industry and how it works now all of our mentors obviously have a ridiculous amount of professional training experience that's why we've brought them on board so while we're out here in Thailand doing our program I think it will be useful if you ask these guys questions about the retail trading industry they'll be able to answer those questions inside out because they've been in the game for a very long time you know these guys really understand how the infrastructure works and I think the viewer will get a proper insight into exactly how that works and that's really the first step under the 1990 93 times first of all with stocks yeah then with options and then with Forex and although I did think I always have discipline and actually found my stops and everything like that when I funded each account I've got a little bit too overconfident with certain trades but I didn't realize exactly what I was doing at the time but I was just breaking all the real strict rock from day one it was a long ago only strategy as well I think I'm that one that I did hundred thousand and the stops that I put in there were just the stops that I was risk I was deciding that I didn't want to lose on that particular trade so there was no real strong defined strategy on ATR or anything like that so what did you learn in the on the option side are they there Duffy range with sounds there there's all sorts of different options and very difficult to grasp than already rebates on a commission basis don't exist in the u.s. they were banned in 2010 so I be agreements were banned in fact prior to 2010 so good that well there you go you've accrued yeah right moving average and all this stuff parents yeah just what everything over-leveraged went up to a million and then how much time do you have in your account well I started with 20 yeah and lost lost loss leave it with I was until 10 proximal 11 the other end stop stop and worked out one day what made you open your account just advertising well from the media everybody was came as well from Maria's that I knew few guys that were doing but like a arbitrage I think right well but back in 90s gangly stuff online learning would like technical and broker explain some stuff and the 80% of Pam it breaks and so you've got 20% chance not having it and this stuff but this is the difference between like technicals or fundamentals right yeah if you take company report annual report and you do a real fundamental analysis on the company and understand the key performance indicators of that business and the industry that they're in right and one thing that used to drive me up the wall was when people who work for me would sit there with their Bloomberg screens on with a tick chart going watching things go up and down it used to drive me crazy and you know when I was a partner pieces were paying these people salaries I was money coming out of my own pocket watching a chart tick up and down is not doing work it's procrastinating it's delaying doing proper work so I basically invested in a company zinc recycling factory so they make money based on the price of zinc so I was basically trading it based on I guess the warm Buffett's thought of investing where you try to find a deal when the price of the stock goes down and then I try to double that I bought it based on following two hedge fund managers I just kind of Co tailed them I guess so I figured once the prices skyrocketed or went back up the price of the company would go up as well they ended up filing for chapter 11 bankruptcy basically it went down to zero yeah yeah I lost all my money so where'd you get the information about the to hedge fund managers being buyers of the stock what did that where did that come from there's a free website but basically it lets us know which hedge fund managers have positions in what like so they're basically monitoring SEC shareholding filing yes I think they had five more than five percent in the company so I had to like file right all right okay and they'd accumulated 5% holdings right so just purely on that basis right in the phrases going down to follow them in yes so rather than that be something where you've you know gone in and got massively levered up or something right it's actually just a question of putting all of your eggs in one basket yeah and you hadn't done any basically no kind of research on the stock really no not really a process it's all just following some allegedly smart money right I did actually course in Fort Lauderdale close to Miami and they've been taught me how to like overall stock market and they said you can use exactly the same approach to the forex exactly the same just look at the chart bunch of patterns it looks very smart then I narrow down to let's do simple supply and demand just see with a good stop-loss then stop lost keep triggering then you go lower in the stop-loss so make sure that you're not gonna step out because usually you stopped out and then it's going other directions it just as long as it hit this supply level okay and it kind of turned it around that's the way to go like you have to put a position I was a little addicted I remember I was trading even on the phone and like in three minutes you make thousand dollars like wow it's working at some point I just stopped doing sup losses at all because it was just annoying it was like stopping me out and then going the direction that I supposed to be it's supposed to go on from there literally like on the part and you kind of see in the past it worked you can see that it's been supply demand yeah that's why you saw the paper when you open your account with the broker which says I understand the risks and I understand that the past has no guarantee of occurring in the future but where was the the broker regulated have no idea didn't care you know they taught me how to do just follow the charts patterns I did some good trades but of an overall in the end of the day I was over leveraged one to 100 and I was like quickly wiped out I tried it several times so it didn't work and that's why I was searching constantly for the great educator for someone very professional that's what they do in first of all when you talking you understand Wow like I didn't do my due diligence I didn't look for the great mentor and you kind of talked about it and you understand what mistakes you've done and then feedback from Anton and the group it's super valuable you trying to Wow like mind opening and eye-opening I've done forex trading on CFD yeah just a very small account only thousand euros I've watched some videos there there was a guy online and he analyzed the market to the Ducks opening and also some currencies and he wrote a book on forex trading okay and he has his own like he builded up his own academy okay what's his background I don't know he said like he he's trading other people's money but he never proved it yeah you can't so unless you're regulated you can't it's illegal when I started looking at commodities it seemed like those were more the real engines of the economy rather than slips of paper that you can't do anything with so I was always kind of you know kept an ear open for learning commodities and found out about a commodity system made some pretty incredible claims and I didn't really trust it so what I did is I went and bought the back data all the way back to like 1972 of commodity pricing I wrote a program to trade it according to the system and every time I found a bug the returns improved till the point where I got really confident that what he was describing is how this works so I started doing it it showed it to my family they put money in we formed an entity and first two years were just absolutely phenomenal so I made a lot of money there made a lot of money again the following year and then we got into this cycle of quantitative easing x' central bank announcements during the middle of the night and I'd wake up in the morning and there's a 20% drop in the equity curve yeah so when things like that would happen markets that I thought were uncorrelated were suddenly correlated when a central bank does something yeah it sends a shockwave through everything well futures are levered to begin with and that's why I learned the meaning of volatility running this this entity cuz you know 20% yeah updates and 20% down days and more down days and updates yeah I remember at one point the whole account was sitting at just under a million and a half dollars and my finger was hovering over the mouse button to self yeah and I thought wait a minute this is a system I have to trust the system the system got me here I gotta let the system work and I pulled my finger away I woke up the next morning was down twelve percent that was right before all the quantitative easing stuff happened you can look at my equity curve and it's just boom boom boom you know part of being regulated in just the way I did things is I always sent out monthly statements and told them exactly where they were and they could move money in and out at will and so it was yep I'm not ashamed to talk about those losses and what's happened with my system and that's a big reason why I'm here is to fix those inadequate inadequacies and understand how money is professionally managed in a very different way focusing on the risk side which is something that's been missing in my trading since you know 2006 when I started people were going through past trades that they've done past trading accounts that they've managed why they've lost money or why they think they've lost money and then we're actually telling them why they actually did lose money instead of saying right go out there and start dragging bits of information together and doing in a haphazard way we're giving them a step-by-step guide to go through and be logical repeatable and consistent about what they're doing such that when they come back to us in a couple of days and we replicate the hedge funds scenario where they're pitching ideas it's going to be an efficient and an enjoyable process for everyone [Applause] [Laughter] [Music] [Applause] [Music] so Russian thank you very much for taking the time the reason I wanted to talk to you this was I've been speaking to our students many of whom you will be mentoring mm-hm some of them have lost $10,000 some $20,000 and actually a few of them have lost a lot more than that mm-hm turns out that they were learning information that they thought was relevant to financial markets and trading from self-proclaimed trading educators and out of that so how do these guys who have literally no experience trading how do they even exist and how do they get away from it yes so these trading educators I think there's about four common methods that they all use the first one is they create this fake backstory they clearly exaggerate or just create this background their experience in this track record which just doesn't exist they'll put in Excel like I bought 50,000 shares at five I sold 50,000 shares at nine they'll show a $200,000 profit and they'll just show up on the front of the of their excel sheet and no one can prove it right it's right they'll just show a profit on the on their website which no one can verify and clearly false but there's no real way to verify it in fact they've done some other methods like for example they'll create one account with AB I have a long 100 shares or something XYZ the other one shared in the other account they'll be short a hundred shares of XYZ and clearly one of them will make money and they'll just show that on the on their website and to prove that they made a lot of money you know and yeah it's so actually what's happening since like 2016 we've really um you know wanted to overdrive and shown that you know these fake educators are basically showing fake money or fake P&L so they've had to delete these equity curves but they've still had to you know push this narrative or this back story that they've been profitable so because so many articles have been written about them as very rich and successful traders so they've from so what they've had to do is they've had to move on to other methods and techniques to show the world that their actual profitable traders even though we know and we know for a fact that it's untrue yes so the second common method I've noticed is they create this this lifestyle narrative where they push this narrative that they've got fancy cars and they live in mansions they're on yachts they have fake girlfriends that are paid for for the day models they'll be on that fake students talk about how much money they've made by following this trading educator who's changed my life and turned a thousand dollars into a million dollars and they'll even show like fake money that he could buy fake money online you could buy ten for ten dollars we buy a hundred thousand dollars which is the money they use in the rap videos like in like a like a Ludacris the rapper's the rap video and they'll make it rain in casinos or other types of environments well apparently it is yes so one thing we've noticed recently as as these training educators sales have declined because a lot of their claims have been debunked they've switched over to this philanthropic model basically they're claiming that they're they're rich philanthropists that are taking the money that they earn that are given to them that is given to them by you and they're going to Africa and taking videos of them in front of a school where African toddlers are going to learn how to read or they'll go to the Philippines where monsoons hit and they'll donate money to this charity that will help these less fortunate you know they they basically try to push that there there Richard Branson or Bill Gates where there so they're just trying to help the world rather than they're doing in truth what they're doing is they're using they're using this as a direct marketing expense and they're just taking that as there's tax deduction and just taking money in for them which is pretty shameful to hide behind the the ruse of a charity to get rich so the education can no longer sell on its own merits so now that they're they're pushing the product to kill to your heart rather than your mind and you almost see it as a donation to help the less fortunate so fun with what they're what these trading educators are doing now is they're creating these subscription chat rooms where you have to pay a fee to get into these chat rooms and all they're doing is pushing these technical analysis nonsense which you can literally learn for $20 off a book on Amazon and you remember everybody these trading educators have no experience if you want to know what a real what a professional trader or any trader actually if he has any real experience go to Finn run the us go to the FCA in the UK or when you're in Europe go to ASIC in Australia or really in any country you can literally just type in financial regulatory authority insert country name and then find out if this this trader has any real trading experience because remember it you know it exists online for 10 years or more if you were ever a professional trader you know it's I it's I find it very funny that retail traders will spend you know six hours to figure out where they're going to dinner by going to Yelp or Google or Google review or TripAdvisor but they won't even spend 15 minutes to see if the trading advisor that's giving them advice actually has any real experience exactly exactly and and then though on their websites they'll even have fake testimonials like they do on like TripAdvisor or like you know anytime at a restaurant opens up right away you can see there's 20 reviews right away from all their friends this is what they get this way they do on their website even though we know for a fact it's not real people you know what's it's sad that but what they're really targeting are people with IQs of say lower than 90 you know unfortunately they're also in the people that fall fall victim to this are usually people with less money people that are unfortunately less well-off minorities people immigrants where they don't have any credit so they'll run up debt on their credit cards and it's just this downward spiral of losses you know it but there really just going after our the financially naive because the financially slightly superior will realize that this is a hoax or ask the right questions instead they just go down to they ditch target these people with very aggressive marketing techniques and then once there once they have them hooked they'll lose all their money and then they'll move on to the next victim so will usually happens at the retails these retail traders will trade for a while then they'll lose a good bit of money and then they'll just get frustrated and then they'll just stop trading though just they'll think to themselves that they're just really bad at it they've what they've been properly taught and they just can't make money and they'll just go away and the day trading educator will move on to their next victims where their fake broker statements or fake tax returns where they're literally I've seen this now they're really photoshopping fake numbers into these broker statements and showing them to their potential customers of the money that they've made in the past I mean laughably sometimes I'll see where they're even in a different font and these borderline criminals are just showing you know fraud to you know to to lure in new clients and it's just sad and it's something that we in the Institute are trying to shed light upon listen ninety-five percent of what you learn from trading educators online is complete and utter nonsense I know this because I worked on Wall Street professionally for 15 years and I've run options trading desk at Bank of America Nomura BNP and really all Wall Street professionals know this but unfortunately most retail traders do not know this well sure well the first challenge is for for them to for retail traders to understand the industry properly and once you understand the industry properly then you can start to make progress in trading the financial markets correctly and profitably good place to start so that's the last quarterly report so today's homework date there's nothing I come down here to make myself available for the students along with the other mentors and basically you know we're here to sort of give them a steer and help them if they're coming up against any of you know sort of major roadblocks so it's not really about spoon-feeding them but we're actually just here to sort of get them over any road bumps queries etc and just sort of set them on the right course [Music] yeah so today I've been looking for short ideas so up nice and early in the morning just thinking about from the macro perspective things are going on around the world see who's to switch sexes are exposed to different countries so yeah I think I found a show idea I literally just dip in get call them and probably five minutes I think it gets right back in there you know you can become a little bit frustrating at times when you're looking at so many numbers and and sometimes you can't get the right number and you just gotta be persistent and then sometimes it's good to just you know let your mind relax just a refresh and then yeah you get you end up getting more ideas you get more ideas sometimes when you're not staring at the screen then then when you are so yeah so it may need before from a stock market I literally got hardly any experience to really know much about markets and mainly technical analysis as well so it starting the course couple of months ago online it definitely gives you a completely different perspective on the markets I mean it's nice and easy looking at the numbers but until you actually realize what those numbers mean it's it changes everything so yeah it's just yeah I can't wait to get going and just get a good portfolio together [Music] you're based in the UK where there's obviously a very mature retail trading and brokerage industry what changes have you seen the biggest changes were the ones that took place last year in 2018 and these were changes that took place at asthma which is the European securities and market association and basically you know I'd advise people to Google that and have a look at the the changes that took place but I'll give you a flavor a sort of a top-level summary of some of the things that they change so the big thing was that they raised the initial margin requirements for retail traders in terms of deposit the capital they need to deposit in their retail trading accounts so that means of course conversely that's lowered the leverage that retail traders can obtain from their brokers so I'll give you an example in equities the initial margin went from 10% pre the changes to now 20% which obviously means five times leverage exactly and with major FX pairs the initial margin has gone from one point five percent to three point three percent which sounds like small numbers but of course that's more than a doubling we would actually argue that the the FX margin requirements need to go higher still actually so since 2011 we've been arguing that you need to put in a minimum amount of capital into your trading account because under the previous regulations which we were talking about people would open accounts with $500 or $1,000 and then take massive leverage this is the way to blow up so we've always been speaking and certain Saints people that they need to deposit at least fifteen thousand dollars into their account as I was saying in terms of the initial margin we don't think that you should be more than five times levered in terms of equities and not more than eight times levered in FX which of course is still well within the current limitations and that that's or course of action once you've actually started to make money there also there used to be things like you know incentives for people to open their accounts so you know open an account get a 500 pound bonus something like that referring people you know referring your friends the new regulations that asthma have introduced have have certainly reduced those types of incentives and actually we again were a leader in this respect because we were the first people anywhere that I know but certainly within Europe that introduced these things called zero percent introducing broker agreements and effectively what that means is that we never ever receive any compensation or incentive for any Institute traders opening their accounts and so we've got absolutely no conflict of interest so those types of incentives they're not completely close but they certainly clamp down on them and there's also they now have to declare I kind of like standardized warning in in their promotional material in terms of the risks that are inherent in trading financial markets and particularly trading on high leverage so I don't think that I TPMS influence on the industry can be understated so for example regulators from the FCA which is the regulator in the UK have actually been coming to institute seminars that we've put on in London since around 2012-2013 actually asking us questions about the kind of risk management policies that we ensure that our students implement and actually asking us you know what we think are the sort of appropriate levels of leverage appropriate levels of margining and also you know account size so we've made it really clear to them that we thought that you know 10 times leverage and equities was way over the top hundred times leverage on major FX pairs absolutely ridiculous so that of course has meant that those people who you know who kind of believed that dream of opening an account with $500 $1,000 in becoming a millionaire thankfully and they cannot be exploited shall we say now and we think that this is a direct result of conversations that the Institute has had with regulators particularly in the UK so we're very proud of that I think people would probably be interested to know that in the last seven years the number of Institute traders has grown so impressively that we are now if you aggregate all of our London and all of our UK and European Institute traders together we're probably the biggest retail broking client in London and that is because a we've obviously grown our business but it's also be because our guys don't blow up which means that you know we are there in terms of retention for the for these accounts and these guys they're not going to go bankrupt and they're going to be there for the foreseeable trading their assets to their trading accounts and that makes us actually quite a valuable client yep for brokers absolutely they do more than survive they a lot of them are absolutely through I think with you know impressive returns that professional traders would be very proud to have and also we talk about risk adjusted returns so adjusted for volatility of P&L well today we're talking about short ideas that will carry over into tomorrow's homework called grip sessions we'll be expanding upon that on on the on the second day and then we'll be starting to be talking about sort of peers trades and having a more dynamic risk management process within their portfolio F 1.4 F 2.61 right okay what did you say was 30 36 36 cents right okay so we'll stick that in here f1 we added four to use well yeah what is so that I think there's there's some problem there with the way that that that's been brought in because clearly we can see from looking here that the 40 cent number is actually for 2020 which is f2 I think the the data's part it takes a few session for them to get comfortable but once they get through that it becomes second nature the qualitative quite however there's always gonna be holes in it and even a if me and Jason for example we're discussing our trade idea I would ask him questions that he might not have thought of so it's constantly a it's a work in progress in terms of retail in terms of our delegates struggling with the quantitative side of things it's happened on every Thailand trip that I've been to and it tends to happen on the first of pretty much every mentor call as well and that something's there negative the first trade idea that the first pitch so to speak will come up will take them longer to come up with and they think but they should feel encouraged that over time with a bit of repetition and with a bit of practice they'll get much more efficient at that and they'll get better at it you've got three patents that are pending at the moment for their technology so they're improving and investing the technology to increase services to the existing dealers to increase the price of their monthly subscription one of the biggest differences between retail traders and professional traders is retail traders think in terms of what's my upside most all all good professional traders not all professionals but all good professional traders always think firstly what's my downside here I thought was very beneficial exactly when you're generating trade ideas on your own you don't really have a sounding board and obviously you have confirmation bias you think every idea you generates amazing and and you you know with that bias you overlook potential weaknesses and risks in your idea and I think the the critical feedback from Jason and Roger is very beneficial and they really helps all of us finesse our process so that was good it was really nice to have there's two things that the people should strive towards when trying to design a process it should be repeatable and it should be consistent it means if something goes wrong at some point they can always go back and clearly identify where something went wrong in the process and where something went wrong with the idea or even they can clearly point to why something has gone right just as much as well but most retail people before they come to us don't have a process and it's actually the core of what we're teaching them is to follow something structured and something repeatable and something that can but I know I got burned by by shopping a stocks because overnight there was an announcement that there was a takeover and I and I got shot and the the price shot up and I lost quite a bit I think it's in the region of five fika yes we've been the night overnight is a small of a technical when the big certain certain threshold you were shot it and basically we are doing some string trades over a few days that is why I find that this fundamental classes are actually very powerful and very useful it is very hard to find people teaching mackerel hedge fund long shot strategy in the market and I was trying to look for this for a long long time do you think it's hard to retail traders know if they are of course if you cannot do it by themselves I think you would take a long long time and I don't think they would be able to do it actually I suspect so you can't just find over true through the books or even through the internet you need someone that has been there who could some rice and some rice everything and make it short for you and you'll cut short a lot of the learning curve the whole learning curve yeah they they whirring they're using the merchants merchandising team successfully mitigated cost pressures from the 10% and they're implementing solid plans for for the other 25 there we gotta go back and do a bit of more I'm look and look at the super sector and pick out the the bigger companies and see what they're doing and do they have a similar processes what company we've selected and and work out those differences and where our companies has got the upper hand on on their synergies yeah that I think you need more information on the way that the tariffs have affected the business I'd like more information on the net profit margins will go away we'll think about it and then we'll adjust our thinking and then undo it again we've laid out a process that we use that's not a strict template for them to follow but it's there's certainly a guide that they can use and I think by the end of the week most of these people will be following a process which is somewhat unique to their own talents or their own abilities people may think they have a process until they're until they're forced to verbalize it and when they find that they can't verbalize it or write it down they realize that they actually don't have one what you've just witnessed is actually the difference between what professional traders do and what charlatan educates us to so imagine that one word document and imagine what they tell you before follow this line on the chart this is how you make your decisions what's on that one page document totally different right that's the difference between professional traders and charlatans you've just witnessed it right there oh this one I've been trained by educators before and they didn't come they didn't have the same types of processes that's what you learn here yeah a little bit my process before actually started with the Institute with mainly technical analysis so we choose a start or a currency common technical terms and trade it to another technical level before we get stopped out positive trade yes I'll get stopped are you more often than I was getting stopped out fortunately to me that's why I'm here right it's enlightening to see what types of process these professionals go through and there's a lot of work goes into it and it's hard work at first but the more you do it the easier it becomes [Applause] in the retail trading industry it seems quite obvious that there's a lot of misinformation out there poor information delivered by people who as it turns out don't actually have professional level trading experience how should people go about learning how to trade financial markets properly well this is something you know coming from the professional side of trading that I've never understood when I look at the retail trading infrastructure people seem to go about learning how to trade in a different way to just learning any other new skill so I always look at for example the classic four stages of learning which is basically unconscious incompetence conscious incompetence conscious competence and unconscious competence and the problem with most retail traders is and you know it's an unfortunate situation in the retail trading industry they end up just circling around at the beginning at the first level of unconscious incompetence what does that really mean it means that you just don't know what you don't know and this is all because of the misinformation and retail brokers and charlatans trading educators people end up just circling around with unconscious incompetence and they never actually get to the next level which is conscious incompetence so that's for example like sitting at a trading desk literally next to a professional trader and them showing you what they actually do at the professional level and then people realize you know even when they come to an IT PM seminar and we show them that like we were at an investment bank or a hedge funds and you came and sat next to us we show them that and people become conscious of what they don't know and they say oh my god how have I been so stupid to lose five ten twenty five thousand dollars by learning all of this nonsense that doesn't actually make me money in financial markets then you go to the next level which is conscious competence which means you're actually doing it for real in the markets and applying that information I'm making money then you go on autopilot so it's kind of like driving a car and not thinking about it it becomes unconscious competence it becomes part of you it becomes second nature and you just make money on autopilot so people end up really in the retail trading infrastructure just circling at the beginning it with unconscious incompetence and I think if you just take that template of the four stages of learning and apply it to the retail trading infrastructure you'll be already winning and you'll be far ahead a versus so many people because you'll just get to the next level where you realize oh my god this is the stuff I didn't know existed then you just have to learn it apply it and make money and then turn it into an autopilot situation which takes quite a while it can take a year two years but you know this is the way we do things at the Institute and this is and we applied this template to the retail trading infrastructure in order to change the way the industry works so this is what we're trying to do here for example in Thailand you know with our with our mentoring programs and having direct access to professional level traders yeah down grades to recommendations or earnings forecasts down grades - what so when you say downgrade what are you talking yeah been downgrade to walk you have to be very very confident in that story and their ability to execute it for the best case scenario scenario to unfold you know and I'd sort of say I don't think you've got one but what is you what is your stock price target for this stuff you have no I do not I am a retail trader like everyone basically punted and made money and lost money as well and so but I have decided that to stop all that crap and just come to the Institute learn to do it properly and then start again so I just ask you then if you have experience of trading and you said yeah punters exactly you know it's not proper training you realise you do realize when you come here that it is a completely different world the world of professional traders and the world of retail traders and yeah so I'm really really happy that I came here because I'm learning the door to do it the right way it is more it is it is it's a process so it is very difficult at the beginning to find all the answers but obviously I'm feeling a bit more confident but I'm still a long way away but I'm confident after the three months mentorship I'll be fine [Music] so Ross the retail trading industry has clearly grown a huge amount globally in the last 20 years and as the other mentors in the Institute of points outs me the industry seems to be evolving and going through a lot of change still so what changes have you witnessed since moving from the professional sides retiring and then joining the Institute's sure you see.well post the financial crisis which quite unbelievably was ten years ago now there's been an enormous uptick in retail participation in in all financial markets you know part of that has had to do with improvements in technology and communications part of that has been because of better market access but a lot of it has been a traders rational response to financial repression which begs the question what is financial repression well financial repression is when the central banks have chosen to set the level of interest rates below inflation depending upon where you live sometimes at zero sometimes less than zero and the point of them doing so is to drag forward demand and push capital into financial instruments and riskier ventures so I guess that I guess people have been sitting there looking at their bank statements watching their statements go absolutely nowhere for a number of years looking at their pension statements realizing that their money is just not working for them you know ten years ago for people of you know moderate to you know wealthy means they could they could genuinely look at interest income as a supplement to to enhance their lifestyle rightly or wrongly that options now gone so what are people going to do well they're going to invest in things they're going to make their capital more mobile and the financial markets response to that has been to invent all these products which are designed to take advantage of that liquidity things like binary options super leveraged FX contracts volatility ATF's yeah and these products are almost impossible for anyone to make money out of let alone retail investors professionals can't even make money over these things these things are totally and utterly designed to take money from your pocket and put it into the pocket of the broker so do you think this environment has led to a mistrust in the financial system certainly for some people and you know charlatan trading educators of which unfortunately there seem to be many they see this desperation on they see this desperate behavior amongst people you know needing to be less conservative so people needing to take their money out of their savings account out of their pension out of their pension system and putting their money to work in more speculative means unfortunately there's a whole host of people out there who prey on that and invent a narrative that they can make themselves very very wealthy well the first step is to avoid people like that and I think that comes with a certain level of common sense you know we've spoken about when a person is looking at their bank statement week after week month after month year after year and working out that their balances are not getting bigger maybe they're looking at their pension statement on a quarterly basis and realizing that the number just simply isn't get getting bigger I suppose the first step is they have to take responsibility for their own financial future now what does that mean it means getting yourself educated it means accepting the fact that you need to have a work ethic and that if you want to treat the financial markets as a real business in other words radically change your financial future guess what you're gonna have to do it yourself so now we're after anthems we're just gonna pitch a couple of ideas so we've got two two shorts and two long ideas from where we started we're just completely different people so it's yeah it's it's great so they've had a couple of big contracts recently but that was more to do with the civil parts or the air traffic controlling so they've had two contracts in the last month which were 14 sorry 13 37 38 billion that's from from from what I've read in detail has an 18 report yeah contracts wise obviously it's pretty hard to look future wise of the contracts they're usually over mainly they're usually five-year contracts I'm very happy with the work we've got three positions on decent positions not like home run knockout the park positions but it's a good start and the progress from the first session has been pretty outstanding you're now basically I would consider just one rung below being able to process and verbalize at a professional trading standard well like you says always stay in motion so always be thinking about where things are and what can be done to maximize reward risk alright who's up next they're basically growing rapidly it is essentially what's going on there that's if their core business is growing rapidly and that's being driven by a couple of trends that I identified like the thematic sort of situations there's a little bit behind the 8-ball with the R&D because they're transferring to a new architecture for H hardest drives so that's the one you do because you don't have any wastage of time premium when you compare your progress to the beginning of the week obviously there's still some things we have to iron out in terms of quant numbers arithmetic attention to detail it's far better out of 20 people so if you adjust it for the amount of people it might not be the case that it's like we're walking away with than most ideas but walking away with 7 positions already on is a record Capitol committed now if I just mentally add it up we're looking at probably a quarter of a million already committed which is pretty cool like this January I would say 50% of this group could genuinely have proper portfolios now and we'd be able to trade them and probably make money so you should be proud of yourselves it's good it's been worth the trip so run of applause [Applause] on time for a few drinks and a barbeque happy yes very happy I work to put the position on boys for now making cm Divya along 10 days all right I think he bus is here [Music] [Music] I've tried many different processes obviously all of them no good technical analysis you know reading the annual reports not really understanding what I was seeing and then when I put the treads on not really believing what I was doing which made me feel like I had to monitor the trades from minute to minute and it you just don't have confidence you know you put the trades on and you don't really believe that they're going to go in your direction so it's basically fumbling in the dark this time with the knowledge I've learned that I do feel there's more confidence in my ability to make the decision to buy something and be confident that that's the direction that the stock will go rather than thinking I really don't know where it's going basically yeah yeah I've traded some Forex stuff it just went bad yeah basically I've never made money I didn't screw up but it was just because my my positions were so so tiny if I would have picked bigger positions I would have flowed on blown up and said what is different now I have process behind that I can go through and that I can rely on every time it's not just looking on the chart I really have to dig deep and and really find something it's not just the oh just have a quick look there and look there and there and then the work is done no it's actually it's way more to do and to dig deeper and you can look for for some problems what have you missed in the process have you made some mistakes and then you can refine it and build it one sentence to sum it up get aside from one problem duska lowest Vern was thank you sir thank you soon so Anton I've been talking to the other mentors throughout the week both here on camera and offline and as ever I'm struck by their experience their pedigree quality of the firms that used to work out the ups that people say about them and so are the students for them to have access to these guys is is great where did you find them and where did you find so many of them that's a good question finding these mentors is not easy it's not one of those things where you can go on LinkedIn for example and have like a filtering process okay you know you type in some requirements like professional trader for ten years minimum made over a certain amount worked at all these institutions and you can't do that we have to use our networks and we've done it Jason came on board first followed by Raj then other guys came in and I had to genuinely go out hunting globally for these guys through our networks and they had to be over a certain number of years certain net worth and a certain standard in the professional trading world so just even be spoken to or considered and it was a real massive challenge for us to find them and really it's no different to the challenge that retail traders have for themselves because they have to find these guys themselves so we've gone out kind of done the work for the retail trader in bringing all of these professional traders under one roof and it's really the same challenge that they have [Music] today's Saturday it's the finally the mentoring program I feel the students have come a long way they started out knowing a little bit and they've come a long way and I'm really excited for their prospects going forward yeah I'd say that this group more than any other if there's really kind of bonded and kind of expect them to keep in touch I did have experience a little bit with the trade in overall it wasn't profitable and that's how I came across Anton I was looking for the guide I was looking for the mentor I found Anton I found the team also we get amazing team between us as a main tease and I'm very looking forward to work with Rush and continue with a mentorship and overall it was fantastic [Music] and we've all got different backgrounds but we all have this same shared interest everyone seems really driven we all turn up for breakfast doesn't matter who's there you just go sit down and you start your daily conversations and it's kind of all revolving around trade ideas generation what's happening it's a good community I've never seen anything like it where you can sit in a room with four mentors who've been there done that and they literally something they can make something that seems very complicated and can be very complicated and they break it down so simply it's it's just great to watch everybody in action so yeah takes you away from the domestic daily routine so you can actually really kind of focus on what what you here for it does take time we spent I think the first day for our homework most people work 10 to 12 hours yet to have that clear mind so you can focus on it really helps and it helps having such an amazing view [Music] I mean trading can be quite a lonely game so without a doubt now the all 20 of us are just gonna be staying in touch and just in one massive group together so yeah it's gonna be a gonna be a fun future oh I absolutely think these guys have a good chance David this group is focused they work hard and they've come a long way and I really feel like these guys are gonna be very profitable going forward meeting your mentor face to face one of the first things we do is obviously the confessional how have you lost money tell me the whole story start to finish they know that there's nothing else to hide there's nothing left to talk about there's only upside from them [Music] you

Channel: InstituteofTrading

Views: 241,079

Rating: 4.8428512 out of 5

Keywords: Anton Kreil, Million Dollar Traders, Goldman Sachs, Institute of Trading and Portfolio Management, itpm, instutrade, documentary, traders, retail, trading, finance, investment, investment banks, hedge funds, technical analysis, FOREX, currency, StockMarket, Stocks, Billionaire, Millionaire, Bitcoin, Jason Mcdonald, Ross Williams, Raj Malhotra

Id: t_jCCnr85pc

Length: 66min 26sec (3986 seconds)

Published: Sun Sep 15 2019