who's supplying the credit facility the investment
investment
Banks who's the perfect broker the one
that pedals The Narrative who's the
perfect client the client that believes the
the
narrative and it creates the negative
feedback loop and the professional Traders
win we can also had add uh hedge funds
and Pension funds into here so in the
gray box on the left Ed funds are smart
money they're basically exactly the same
as Investment Bank crop Traders Pension
funds are slow money they're investing
over a long time but the key here is is
they are the market participants that
are on the professional side and they
are the biggest clients of investment
Banks and combined investment Banks
hedge funds and Pension funds are the
biggest payers of exchange fees on the
planet and two companies own 90% of the
order flow on all exchanges in the world
it's a
Monopoly so what you're looking at
ladies and gentlemen on the left hand
side is Wall Street and if you don't
think they all work together you've got
your head up your
ass there's not many of them six or
eight investment Banks control 90% of the
volume and everything on the right is
narrative so everything we've discussed
regarding the structure of the industry
outside the US actually applies in the
us too but the cfds were banned in the
US in 2010 so what's happened since
retail Traders have been moving more
towards trading options in the US so
they obtain their leverage through
essentially implied leverage or implied
volatility through trading options if
you wanted to actually trade normal
physical assets in the US the margin
requirement is is pretty high so you
don't get much leverage you'd have to it
would be 33 to 50% margin requirement
overnight so two to three times leverage
and why do you think it's restricted in
that way they banned cfds and that
replaced it and then everyone's going
for options to get leverage index Forex
and commodity Futures there's lower
margin requirements but the tradable set
is pretty small as in your amount of
opportunities to make money because of
the amount of contracts or assets you
can trade is very
low so it's about 60 contracts typically
on a retail brokerage
platform and that compares to
potentially 42,000 stocks so your
tradable universe is really small and
this is why options contracts have
become very popular in the
US because retail Traders can deposit
less margin and get potentially much
higher return if they make money through
trading the option of an
asset and this is obviously a to
separate class in terms of options but
the two most important variables to
consider with an option are Theta so
time Decay and volatility feta you have
to be right by a certain
date options adds this other element to
a trade whereby you're not just long
something and you can be long forever
you have to be right by a certain date
volatility why is volatility
important well the more volatile
something is if volatility goes up
there's more opportunity to lose or make
money well risk and opportunity in this
in the asset so what happens when
volatility gets bid
up when volatility goes up options
become more
expensive and Retail Traders don't
understand how to calculate volatility
and opportunity properly so they always
for example go long something
and buy the buy the asset at a level of
volatility that doesn't even exist in
the real market so the odds are always
massively against them so what happens
in the US is the vast majority of
options expire
worthless retail traders in the US use
options as a proxy for simply going long
or short the underlying asset without
realizing that they have to be right by
a certain amount of time or the
volatility that they're either going
long or short
can't be Beed by the underlying assets real
real
volatility but there's a very obvious question
question
here if 70% of options contracts in the
US expire worthless why don't you just
sell options all day
long easy money right
wrong selling naked options as a
strategy constantly just to take money
dangerous why unlimited losses unlimited
losses on many of the trades yes so if
you do that it's basically like picking
pennies up off the railway truck you're
playing a very dangerous game if you
don't have significant amounts of money
to bail yourself out when you get one in
10 wrong you're going to blow up very very
very
quickly now do the Brokers know this or
not of course so if you go on the plat
form and start naked selling options a
lot the broker's going to just stop you
in your account from doing it and ask
you to put up significantly more amounts
of margin to cover the potential for any
crazy losses you essentially have Gap
risk in your in your
trades so you sell a call option hence
giving the buyer the right to buy the
underlying asset at a certain price
before a certain
date you take in a few hundred bucks
congratulations go to bed wake up the
next day the company's been taken over
for a 100% premium by one of their
bankrupt happens all the
time so that's why it's not that
straightforward just because 70% of
options in the United States expire
worthless doesn't mean just go into the
market and start selling options every
day to make an income what people don't
understand in the US is that buying an
option relative to buying a stock or a
commodity uh or an index buying an
option on those products there needs to
be a marginal
benefit in addition to owning the option
than to just owning it outright and if
there's no marginal benefit there's no
point because you have to be right by a
certain amount of
time so the risk reward has to be much
more favorable over the amount of time
and you have to see catalysts that the
market doesn't
price if you're not trading at the right
price the risk reward will never be in your
your
favor so again this massive Gap in
education and understanding of how these
things work exists in the United
States so the options class is a whole
different class but let's have a look at
the uh inversion narrative we already
know what the uh incentives are the
conflicts of interest
these conflicts of interest lead to what
we call essentially a front door to the
industry of lies and [ __ ] that's
what the inversion narrative is you're
being told the opposite of reality and
the opposite of Truth so you fall for
the narrative and do everything that
they want you to do and these lies and
the [ __ ] is extremely intricate in
detail you've got to have a very very
well-trained eye and understanding in the
the
industry to recognize some of the things
that are going on what does the
inversion narrative exist for it exists
so they get paid and wealth is
transferred from your pocket to theirs
it's that
simple first thing we'll look at
agreements this is infrastructure that was
was
inside that chart that we saw of the
industry and we briefly mentioned it the
retail broker provides contracts to people called
Educators and these contracts are called Introducing broker
Introducing broker agreements now the broker has to do this
agreements now the broker has to do this in every country where there's
in every country where there's regulation the broker has to provide a
regulation the broker has to provide a contract to somebody who is introducing
contract to somebody who is introducing people onto their platform what do those
people onto their platform what do those contracts typically State whoever you
contracts typically State whoever you put on the platform whatever they pay us
put on the platform whatever they pay us every month we'll rebate you 25 to 50%
every month we'll rebate you 25 to 50% of the money they pay us so what does
of the money they pay us so what does that mean conflict of interest it means
that mean conflict of interest it means that the trading educator is
that the trading educator is incentivized by exactly the same
incentivized by exactly the same formulaic process as the broker so what
formulaic process as the broker so what do they want you to
do they want you to trade in the biggest size possible as frequently as
size possible as frequently as possible and believe the inversion
possible and believe the inversion narrative
narrative and
lose now in the US this happens all over the rest of the
US this happens all over the rest of the the rest of the world outside the US in
the rest of the world outside the US in Singapore they're banned in the US
Singapore they're banned in the US a training educator can't get a
a training educator can't get a percentage rebate they'll get a flat
percentage rebate they'll get a flat rate but the inversion narrative still
rate but the inversion narrative still exists
why if you get paid by the broker as an educator whether it's a percent
educator whether it's a percent percentage or a flat
percentage or a flat rate it doesn't really matter the
rate it doesn't really matter the outcome is the same what's what's the
outcome is the same what's what's the outcome you still have volume in just
outcome you still have volume in just the
the price no so let's say for example you
price no so let's say for example you got introduced onto a platform and the
got introduced onto a platform and the trading educator got paid 500 bucks flat
trading educator got paid 500 bucks flat rate why does the trading educator care
rate why does the trading educator care how much you trade he doesn't well he
how much you trade he doesn't well he does because the broker is paying him
does because the broker is paying him and he's the broker's [ __ ]
he works for the broker and the broker will not work with an educator who
will not work with an educator who doesn't push the inversion narrative
doesn't push the inversion narrative they won't even get a
they won't even get a contract they'll have their contract
contract they'll have their contract canceled so this is why when we look
canceled so this is why when we look from the left hand side to the right
from the left hand side to the right hand side of the
hand side of the industry those red arrows you see are
industry those red arrows you see are essentially arrows of where the
essentially arrows of where the narrative is coming from and the power
narrative is coming from and the power is coming from
is coming from because all the way to the from the left
because all the way to the from the left to the
to the right every participant individually as
right every participant individually as you continue across is the [ __ ] of the
you continue across is the [ __ ] of the one next to
sense they won't even get the contract the contract will get canceled and then
the contract will get canceled and then the trading educator doesn't have a
the trading educator doesn't have a platform that they can introduce their
platform that they can introduce their students onto or their clients onto
students onto or their clients onto so then they're lost they don't have a
so then they're lost they don't have a business make sense they're the
[ __ ] so how does the Institute get around
around this we spent four years doing
this we spent four years doing this convincing Brokers because they
this convincing Brokers because they have to have the contracts in place by
have to have the contracts in place by law by
law by regulation we force the Brokers to write
regulation we force the Brokers to write zero on the contract
zero on the contract so it says on all our contracts The
so it says on all our contracts The Institute will receive 0% rebate and and
Institute will receive 0% rebate and and commission and flat rate zero why do you
commission and flat rate zero why do you think we do that to eliminate the
think we do that to eliminate the conflict of interest because we know if
conflict of interest because we know if it's there only bad things can
it's there only bad things can happen why would the Brokers do that do
happen why would the Brokers do that do you think the Brokers like
you think the Brokers like that why would they not like
it yes potentially can't less
winners so think about it like this right if if you're The Brokerage company
right if if you're The Brokerage company with 10,000 clients okay what did we
with 10,000 clients okay what did we look at before with
look at before with marketing 30 to 50% is spent to get more
marketing 30 to 50% is spent to get more accounts in to open more accounts that
accounts in to open more accounts that than accounts are closing down okay what
than accounts are closing down okay what do IB agreement provide
do IB agreement provide Brokers they provide them with
Brokers they provide them with distribution and marketing where they
distribution and marketing where they don't have to pay marketing dollars UPF
don't have to pay marketing dollars UPF front so a trading educator is going out
front so a trading educator is going out on their own
on their own dime setting up events like seminars
dime setting up events like seminars webinars stuff like this teaching
webinars stuff like this teaching nonsense introducing guys onto the
nonsense introducing guys onto the platform they pay commission they trade
platform they pay commission they trade as frequently as possible in the biggest
as frequently as possible in the biggest size possible broker takes the money in
size possible broker takes the money in hasn't cost the broker anything
hasn't cost the broker anything and then a check goes back out every
and then a check goes back out every month 25 50% or a flat rate to begin
month 25 50% or a flat rate to begin with in the US but they won't work with
with in the US but they won't work with anybody who doesn't push the inversion
anybody who doesn't push the inversion narrative so what what is it doing it
narrative so what what is it doing it creates
creates infrastructure that lowers their
infrastructure that lowers their marketing
cost so if you write zero on a contract why would you not want to do that
why would you not want to do that because you want the the traders to be
because you want the the traders to be the trading Educators to be incentivized
the trading Educators to be incentivized to get people onto the platform because
to get people onto the platform because it's it's lowering your marketing cost
it's it's lowering your marketing cost it provides distribution does that make
sense so the status quo must be maintained so they don't like
maintained so they don't like it
it but there is a discussion to be
but there is a discussion to be had with Brokers as to why there's a big
had with Brokers as to why there's a big positive for it why why is there a big
positive for it why why is there a big positive
sorry no we not it's not the revenue streams retention retention is a very
streams retention retention is a very very big positive so if you introduce
very big positive so if you introduce guys who only make money they're never
guys who only make money they're never going to close their account of course
going to close their account of course cheap marke cheaper
cheap marke cheaper marketing what else what do we think's
marketing what else what do we think's going to happen in the future IB with IB
going to happen in the future IB with IB contracts who banned them in 2010
Singapore who recently banned them and who recently banned cfds
who recently banned cfds Belgium us bans
cfds it's our strong belief that IB contracts at some point will be banned
contracts at some point will be banned everywhere so here's your first trade
idea First Trade idea from The Institute the morning you wake up and
Institute the morning you wake up and you see the
you see the headline IB agreements
headline IB agreements banned in UK Europe us
banned in UK Europe us everywhere what happens to the publicly
everywhere what happens to the publicly listed brokerage
80% 40 50% of their clients come from the distribution of
the distribution of individuals introducing people onto
platforms so that's gone distribution and marketing is gone
and marketing is gone but if you sit there and tell them that
but if you sit there and tell them that maybe the trade doesn't exist because
maybe the trade doesn't exist because they can save themselves before it
they can save themselves before it happens so the conversations we've
happens so the conversations we've always had is this is going to happen
always had is this is going to happen and you know it's going to happen so you
and you know it's going to happen so you need to set up infrastructure internally
need to set up infrastructure internally that Hedges your business against that
that Hedges your business against that happening and the day it happens all you
happening and the day it happens all you have to do is send out an email to all
have to do is send out an email to all of your
of your Educators and tell them here's the new
Educators and tell them here's the new contract sign it or go away it says zero
contract sign it or go away it says zero and it can all be sorted out in a day
and it can all be sorted out in a day and you can make a public announcement
and you can make a public announcement and say our distribution stays the
and say our distribution stays the same and where else are they going to go
same and where else are they going to go because if they've been banned
because if they've been banned everywhere in the country that they're
everywhere in the country that they're in they can't say to the Brokers oh I
in they can't say to the Brokers oh I don't like that I'm going to one of your
don't like that I'm going to one of your competitors because been banned
competitors because been banned everywhere so the
everywhere so the infrastructure can be set up very
infrastructure can be set up very quickly very efficiently for the Brokers
quickly very efficiently for the Brokers to respond to that in the future
to respond to that in the future retention is a big
retention is a big one instead of having to spend marketing
one instead of having to spend marketing dollars all the time to open trading
dollars all the time to open trading accounts that are opening more trading
accounts that are opening more trading accounts than the closing
down it lowers marketing dollars because you give them a coupon business it's
you give them a coupon business it's like a bond
like a bond so if you put a 100 Traders like
so if you put a 100 Traders like Institute Traders onto a brokerage
Institute Traders onto a brokerage platform and they're trading two or
platform and they're trading two or three times a
three times a week and they never blow up it's like
week and they never blow up it's like the broker owning a bond they're getting
the broker owning a bond they're getting paid a coupon
paid a coupon constantly what if a high percentage of
constantly what if a high percentage of your guys make
your guys make money well they don't like that either
money well they don't like that either that's
that's annoying so they're told to hedge and if
annoying so they're told to hedge and if they don't they've only got themselves
they don't they've only got themselves the blame
the blame and we don't want to hear them
and we don't want to hear them complaining like and crying like [ __ ]
complaining like and crying like [ __ ] on the
on the phone so we're very straight up with
phone so we're very straight up with them we will give you a coupon business
them we will give you a coupon business and a business hedge but we want zero on
and a business hedge but we want zero on that contract you should hedge
that contract you should hedge everything we do because a very high
everything we do because a very high percentage of our guys make
percentage of our guys make money and we want one thing in
money and we want one thing in return we want access to all the data so
return we want access to all the data so we can see in real time under One login
we can see in real time under One login through the back end of your brokerage
through the back end of your brokerage account back end of your brokerage
account back end of your brokerage platform everything that every single
platform everything that every single Institute Trader is doing in real
Institute Trader is doing in real time so we can monitor the
time so we can monitor the risk and they like it if you want to see
risk and they like it if you want to see our IB contracts go to the uh account
our IB contracts go to the uh account section of the website itpm
section of the website itpm doc so we got a new website up we're on
doc so we got a new website up we're on an overlap situation at the moment
an overlap situation at the moment uh so ins trade.com is the old website
uh so ins trade.com is the old website itpm tocom is the new one we've got the
itpm tocom is the new one we've got the four four contracts that we have
four four contracts that we have globally available on the site you can
globally available on the site you can literally download them in a PDF took
literally download them in a PDF took several years to negotiate them all the
several years to negotiate them all the one we have in the states we've gone a
one we have in the states we've gone a step further now and we're about to get
step further now and we're about to get another one in the rest of the world
another one in the rest of the world that does the
that does the same instead of them writing zero on the
same instead of them writing zero on the contract which has taken us 3 four years
contract which has taken us 3 four years to negoti iate prove the infrastructure
to negoti iate prove the infrastructure works let Brokers like us let Brokers
works let Brokers like us let Brokers see that it works give them a business
see that it works give them a business hedge show them that the business is
hedge show them that the business is good and they're just being stupid if
good and they're just being stupid if they think it's
they think it's not the one we've got in the US at the
not the one we've got in the US at the moments with trade
moments with trade station
station 20% of the money that you pay well
20% of the money that you pay well Institute Traders pay to trade station
Institute Traders pay to trade station gets rebated back into their account
gets rebated back into their account every month
every month so just give it back to them up to the
so just give it back to them up to the value of the education that you buy
value of the education that you buy through the Institute so what do that
through the Institute so what do that mean that means you get your education
mean that means you get your education for free you've just got to commit by
for free you've just got to commit by putting the money up first to pay for it
putting the money up first to pay for it then when you become an Institute
then when you become an Institute Trader over a two threee period you're
Trader over a two threee period you're going to get the money back into your
going to get the money back into your account that pays for the education so
account that pays for the education so it ends up being
it ends up being free and we've negotiated the contract
free and we've negotiated the contract outside with a new broker that we're
outside with a new broker that we're bringing in in the next one to two
bringing in in the next one to two months and
months and they'll they're going to rebate 20% in
they'll they're going to rebate 20% in the rest of the world so what that is
the rest of the world so what that is called is a soft dollar agreement called
called is a soft dollar agreement called softing You're providing a service and
softing You're providing a service and the broker's paying for
the broker's paying for it you're providing a service to their
it you're providing a service to their clients and they're paying for
clients and they're paying for it so we always eliminate the conflict
it so we always eliminate the conflict of interest it's one of the most
of interest it's one of the most important principles that we get right
important principles that we get right in the Institute
in the Institute that we always Implement so unlike the
that we always Implement so unlike the other Educators we're not incentivized
other Educators we're not incentivized by volume and frequency we're totally
by volume and frequency we're totally the opposite we actually want you to
the opposite we actually want you to make money because if you do it means
make money because if you do it means all of our data is
all of our data is good so what are they these guys the
good so what are they these guys the trading Educators that have got volume
trading Educators that have got volume and size
and size incentive they're essentially the
incentive they're essentially the brokers in Disguise they're incentivized
brokers in Disguise they're incentivized by the four revenue streams well the
by the four revenue streams well the three three as well three because they
three three as well three because they get the financing so not the OTC gain
get the financing so not the OTC gain but the broker is paying them who gets
but the broker is paying them who gets the OTC gain so they're incentivized
the OTC gain so they're incentivized indirectly they just want you to trade
indirectly they just want you to trade as frequently as possible in the biggest
as frequently as possible in the biggest size possible so they're always going to
size possible so they're always going to show you trading strategies that pay
show you trading strategies that pay them not
you charlatans they're known as guys who pretend to be Traders but they're not
pretend to be Traders but they're not they're fake Traders they're internet
they're fake Traders they're internet marketing imposters
here's the red flags of a charlatan educator who pushes
educator who pushes the inversion narrative and is
the inversion narrative and is essentially working for the
essentially working for the broker day trading always
works well we know it doesn't always work because the trader is a slave to
work because the trader is a slave to volatility and the trader doesn't tell
volatility and the trader doesn't tell the market what's possible the market
the market what's possible the market tells the trader what's possible
remember our euro dollar example 106 buy and sell for the next 250
106 buy and sell for the next 250 trading
trading days buy at 106 sell at 106 if there's
days buy at 106 sell at 106 if there's no volatility you can't make money
no volatility you can't make money impossible so day trading doesn't always
impossible so day trading doesn't always work in fact it works in the minority of
work in fact it works in the minority of cases it only works in history in the
cases it only works in history in the last 15 years 20% of times on
last 15 years 20% of times on average and that is a statistical anal
average and that is a statistical anal Anis you can't argue with it we're
Anis you can't argue with it we're looking at us equities in partic
looking at us equities in partic specifically and the major Forex
specifically and the major Forex Pairs and 80% of the time it hasn't
Pairs and 80% of the time it hasn't worked the odds are not in your
worked the odds are not in your favor so what does that mean you're
favor so what does that mean you're being told the inversion
being told the inversion narrative you're being the told of
narrative you're being the told of you're being told the opposite of what's
you're being told the opposite of what's true but what does that do for the
true but what does that do for the broker and the educator guaranteed
broker and the educator guaranteed volume every day day if you absolutely
volume every day day if you absolutely believe that day trading always works or
believe that day trading always works or works in the vast majority of
works in the vast majority of times in history and going forward what
times in history and going forward what are you going to do well you're a
are you going to do well you're a guaranteed idiot you're guaranteed to
guaranteed idiot you're guaranteed to trade all the time fantastic perfect
client they get paid not you next
you next one it's better to not have overnight
one it's better to not have overnight risk and to exit your positions at the
risk and to exit your positions at the end of the day
end of the day always why is that good for the brok ER
always why is that good for the brok ER and the
and the educator because you guaranteed to trade
educator because you guaranteed to trade twice a day you enter a position and
twice a day you enter a position and exit it also just means that the
exit it also just means that the educator has no idea about risk because
educator has no idea about risk because risk can be hedged out overnight risk
risk can be hedged out overnight risk can be hedged out for months with assets
can be hedged out for months with assets that are correlated next myth you can
that are correlated next myth you can make a monthly income from
make a monthly income from Trading well we know that not that's not
Trading well we know that not that's not that can't be true
that can't be true why because you need volatility
what's what's the big one of the big educator
educator slogans make $10,000 a month trading the
slogans make $10,000 a month trading the international Forex
deserve well what if the Forex markets don't
move you're not making $110,000 a month trading the international Forex markets
trading the international Forex markets you're losing and they're actually right
you're losing and they're actually right you are getting the life you deserve
you are getting the life you deserve because you're an
idiot but what does it mean if you believe that
narrative it means you're a guaranteed fool it means you're going to chase the
fool it means you're going to chase the monthly
monthly income you're going to trade all the
income you're going to trade all the time chasing the income and what happens
time chasing the income and what happens if loads of guys chase the income will
if loads of guys chase the income will you get an
you get an income it's the inversion narrative
income it's the inversion narrative trading is
trading is easy you just need to follow a few lines
easy you just need to follow a few lines on a chart technical
on a chart technical analysis here's some signals follow the
analysis here's some signals follow the lines Buy Here Sell Here Buy Here Sell
lines Buy Here Sell Here Buy Here Sell Here what does that do guaranteed traes
Here what does that do guaranteed traes it's the mice hitting the pedal trying
it's the mice hitting the pedal trying to get a piece of
to get a piece of cheese psychology is the most important
cheese psychology is the most important thing in trading if that's your only
thing in trading if that's your only narrative you've got nothing
narrative you've got nothing if you've got a strong mind you'll be
if you've got a strong mind you'll be good at risk management and make money
good at risk management and make money if that's your only narrative you've got
if that's your only narrative you've got nothing you don't have a trading
nothing you don't have a trading strategy all you need is risk management
strategy all you need is risk management to be a good Trader nonsense you need
to be a good Trader nonsense you need ideas if you've got Amazing Ideas you
ideas if you've got Amazing Ideas you can be a terrible risk manager and still
can be a terrible risk manager and still make money next narrative lifestyle
make money next narrative lifestyle messages get the life you've always
messages get the life you've always deserved one day you'll own a car like
me what they what are they trying to do there they're trying to just distract
there they're trying to just distract you away from the
you away from the reality of the industry and the
reality of the industry and the realities of trading with hopes and
dreams and they're not living that life it's a fake life because they're not
it's a fake life because they're not even real Traders they're fake Traders
even real Traders they're fake Traders and if you remember right from the
and if you remember right from the beginning we looked at Boomers and gen
beginning we looked at Boomers and gen x's and the problem with pensions
x's and the problem with pensions everyone knowing that they can't retire
everyone knowing that they can't retire this is the Crux of the problem
this is the Crux of the problem when desperation from the middle class
when desperation from the middle class fools meets conflict of
fools meets conflict of interest so just two sides of the
interest so just two sides of the equation when desperation meets conflict
equation when desperation meets conflict of interest only bad things can
of interest only bad things can happen it's all designed to distract
happen it's all designed to distract your attention away from what's
your attention away from what's important and they're going to go to
important and they're going to go to extreme lengths to convince you
extreme lengths to convince you otherwise the inversion narrative is
otherwise the inversion narrative is huge outside the United States much more
huge outside the United States much more so outside the
so outside the US but what about inside the us we've
US but what about inside the us we've already mentioned this in the example
already mentioned this in the example with you about how the commission is not
with you about how the commission is not paid as a percentage it's a flat
paid as a percentage it's a flat rate but there's still the broker [ __ ]
rate but there's still the broker [ __ ] they're only going to push the inversion
they're only going to push the inversion narrative because they need a brokerage
narrative because they need a brokerage platform to put people on to legitimize
platform to put people on to legitimize themselves because if they have The
themselves because if they have The Branding of brokerage platforms behind
Branding of brokerage platforms behind them and they're working with them and
them and they're working with them and their their introductions have a place
their their introductions have a place to go to it legitimizes their
[ __ ] they need a home they always need a
need a home and obviously you've seen we turn
home and obviously you've seen we turn the tables on the broker and we've got
the tables on the broker and we've got 370 guys
370 guys globally when you've got a lot of guys
globally when you've got a lot of guys who do quite well and you provide a
who do quite well and you provide a coupon
coupon business the broker likes
you and you also get significant Community
Community leverage because if you have a hundred
leverage because if you have a hundred guys on a platform and they do well and
guys on a platform and they do well and it's a coupon business and you've
it's a coupon business and you've provided a business hedge to the
provided a business hedge to the broker do they want to lose them no of
broker do they want to lose them no of course not so what happens at the
course not so what happens at the Institute when we want something from
Institute when we want something from the
the broker they become AR
broker they become AR [ __ ] because they don't want to lose a
[ __ ] because they don't want to lose a 100 clients we've turned the tables so
100 clients we've turned the tables so what does it look like in practice the
what does it look like in practice the inversion narrative one IB
inversion narrative one IB agreement I don't think we have to beat
agreement I don't think we have to beat that drum
that drum again but one thing you should
again but one thing you should absolutely do if you go to get taught by
absolutely do if you go to get taught by someone in the financial
someone in the financial markets who professes they're an
markets who professes they're an educator and they're good at teaching
educator and they're good at teaching and they're a they're a guru
and they're a they're a guru Trader ask for their IB agreement
Trader ask for their IB agreement if they're introducing you onto a
if they're introducing you onto a platform the contract has to be in
platform the contract has to be in place it's illegal for the broker to not
place it's illegal for the broker to not have the contract in
have the contract in place so if the educator won't give it
place so if the educator won't give it to you where do you go well first of all
to you where do you go well first of all what's the message if he won't give it
what's the message if he won't give it to
to you what's the message from the educator
you what's the message from the educator if they say no I'm not giving you I'm
if they say no I'm not giving you I'm not giving you a copy of my
contract they've got something height or they don't have a contract
height or they don't have a contract which means it's
which means it's illegal so either way it's bad where do
illegal so either way it's bad where do you get it from well
you get it from well actually contact the
actually contact the broker and ask for the the email address
broker and ask for the the email address to their compliance
to their compliance desk under regulation they absolutely
desk under regulation they absolutely have to provide it to
have to provide it to you they have to they have to have full
you they have to they have to have full disclosure of the relationship with the
disclosure of the relationship with the educator
so contact compliance and go behind the Educator's
Educator's back that's how you find out if they're
back that's how you find out if they're incentivized by volume and
incentivized by volume and frequency regulatory history is a big
frequency regulatory history is a big one there is actually a real definition
one there is actually a real definition of what a professional Trader
of what a professional Trader is so if someone claims that they are or
is so if someone claims that they are or have been a professional Trader you can
have been a professional Trader you can find out with a few clicks of a mass why
find out with a few clicks of a mass why because if they've been a professional
because if they've been a professional Trader the def definition is they've
Trader the def definition is they've performed a controlled function and the
performed a controlled function and the controlled function in all geographies
controlled function in all geographies is trading other people's
is trading other people's money investors
money investors money so investors will be a hedge fund
money so investors will be a hedge fund pension fund but also investment Banks
pension fund but also investment Banks the investors are the shareholders in
the investors are the shareholders in the bank and the guys at the bank trade
the bank and the guys at the bank trade the shareholders
the shareholders money they control the balance sheet so
money they control the balance sheet so they're a they are a custodian of third
they're a they are a custodian of third party
party capital and they have to be regulated
capital and they have to be regulated what do you have to do to get regulated
what do you have to do to get regulated you got to take your
you got to take your exams and there's a public record
exams and there's a public record everywhere in every
geography there's mine FCA register so Goldman saaks Leman
mine FCA register so Goldman saaks Leman Brothers JP
Brothers JP Morgan regulated to control regulated to
Morgan regulated to control regulated to perform controlled function of trading
perform controlled function of trading other people's
other people's money and wood Consultants which is a
money and wood Consultants which is a small firm that we had four guys and we
small firm that we had four guys and we had to be regulated because we traded
had to be regulated because we traded each other's
each other's money very
straightforward another easy way of finding out is if you know someone who's
finding out is if you know someone who's got a Bloomberg
got a Bloomberg subscription if you know someone who's
subscription if you know someone who's got a Bloomberg subscription just ask
got a Bloomberg subscription just ask them to type your name into the search
them to type your name into the search field or the name of the
field or the name of the educator and then click on I think it's
educator and then click on I think it's eight career
eight career and it comes up with the full career of
and it comes up with the full career of the person who was a subscriber to
the person who was a subscriber to Bloomberg now it's difficult for retail
Bloomberg now it's difficult for retail because it costs $25,000 a year but
because it costs $25,000 a year but Bloomberg records the career of
Bloomberg records the career of professional Traders and Professionals
professional Traders and Professionals in the
in the market not hard to find if you do a bit
market not hard to find if you do a bit of
digging that's online cre joins JP
online cre joins JP Morgan equity's trading
Morgan equity's trading team that's online as well
so at Leman before you can literally do a little bit bit of digging around and
a little bit bit of digging around and find out if someone has actually been a
find out if someone has actually been a professional Trader in their career it's
professional Trader in their career it's not difficult but people just don't
not difficult but people just don't understand what the definition is
understand what the definition is between a professional Trader and a
between a professional Trader and a retail
retail Trader this is Raj one of our mentors in
Trader this is Raj one of our mentors in the
the US regulator in the US is finra so Raj
US regulator in the US is finra so Raj was the head of options trading at Bank
was the head of options trading at Bank of America head of options trading at
of America head of options trading at namora worked at a few places before but
namora worked at a few places before but he was the youngest managing director at
he was the youngest managing director at Bank of
Bank of America at the age of 29 and ran options
America at the age of 29 and ran options at 29 years old so bit of a player knows
at 29 years old so bit of a player knows what he's talking
what he's talking about takes five minutes to find that
about takes five minutes to find that online five
minutes here's the rest of our mentors so Tristan Chris Kathy's over
mentors so Tristan Chris Kathy's over there Jason McDonald sorry I had to put
there Jason McDonald sorry I had to put your middle name in me too benberg green
your middle name in me too benberg green who's over
who's over there Hisham who's arriving tonight he
there Hisham who's arriving tonight he should have just landed actually he
should have just landed actually he lands at
lands at 8:30 we're doing a conference at the
8:30 we're doing a conference at the weekend here Shem uh you can't get it
weekend here Shem uh you can't get it online because NASDAQ Dubai they don't
online because NASDAQ Dubai they don't record publicly online but we have the
record publicly online but we have the certificates because we only hire guys
certificates because we only hire guys who have actually been professional
Traders so you can go to any of those link and you'll find everyone's
background now none of our guys have to be regulated now
be regulated now why because we don't perform controlled
why because we don't perform controlled functions but the the the point I'm
functions but the the the point I'm making here is this is if you are being
making here is this is if you are being told by somebody who professes to be a
told by somebody who professes to be a professional Trader or has been a
professional Trader or has been a professional
professional Trader all you have to do is
Trader all you have to do is check and what happens if you draw a
check and what happens if you draw a blank or you can't find it
blank or you can't find it what happens if you ask them to prove
what happens if you ask them to prove it and they
it and they can't what's
happened you've been told by a retail Trader that they are a professional
Trader that they are a professional Trader or they have been a professional
Trader or they have been a professional trailer so what does that mean you're
trailer so what does that mean you're being potentially taught by
being potentially taught by somebody who is exactly the same as
you just because you have access to a brokerage platform or a trading
brokerage platform or a trading account with with a couple of thousand
account with with a couple of thousand dollars in it and you trade every
dollars in it and you trade every day it doesn't mean you're you're a
day it doesn't mean you're you're a professional Trader or have been a
professional Trader or have been a professional Trader it's like me going
professional Trader it's like me going out into my back Garden every day and
out into my back Garden every day and kicking a football and saying I'm a
kicking a football and saying I'm a professional
professional footballer Barcelona are not signing me
footballer Barcelona are not signing me up next
up next week and I should not be teaching
week and I should not be teaching football
football it's pretty
it's pretty straightforward so
straightforward so anyone can do their research and if you
anyone can do their research and if you don't you're actually being really
don't you're actually being really irresponsible all you have to do is
irresponsible all you have to do is check the regulatory history so check
check the regulatory history so check for the IB agreement check for the
for the IB agreement check for the regulatory
regulatory history the vast vast majority of
history the vast vast majority of trading Educators in the
trading Educators in the market have absolutely zero professional
market have absolutely zero professional trading
trading experience they are retail Trad ERS
experience they are retail Trad ERS pretending to be professional
pretending to be professional Traders and it takes one
Traders and it takes one check so now you know the
check so now you know the definition if they have no status no
history having a controlled function of managing other people's
managing other people's money it means they've never been a
money it means they've never been a professional Trader and they can't claim
professional Trader and they can't claim to have been
to have been one it's a binary
one it's a binary outcome you can't get a little bit
outcome you can't get a little bit pregnant
pregnant you're either a retail Trader or a
you're either a retail Trader or a professional
professional Trader you're either pregnant or you're
Trader you're either pregnant or you're not they're just pretending so they'll
not they're just pretending so they'll have the IB
have the IB agreement they'll pretend that they're
agreement they'll pretend that they're professional
professional Traders how do they pretend that they're
Traders how do they pretend that they're professional
professional Traders well we live in an online
Traders well we live in an online world and they'll create completely
world and they'll create completely manufactured backstories of their lives
the most common one and I like this word it's a German
it's a German word wund
word wund Kinder The Wonder kid the kid that came
Kinder The Wonder kid the kid that came from
from nowhere and usually the LIE is they
nowhere and usually the LIE is they turned an amount of money like $10,000
turned an amount of money like $10,000 into a big number like over a
into a big number like over a million the Wonder kid turned $10,000
million the Wonder kid turned $10,000 into a
into a million now why is that why is that
million now why is that why is that convenience
convenience because everyone can afford $10,000 to
because everyone can afford $10,000 to open a trading
open a trading account most people in the Western World
account most people in the Western World can just put it on their credit card so
can just put it on their credit card so it's the perfect [ __ ] story to get
it's the perfect [ __ ] story to get people to pay for education and put 10
people to pay for education and put 10 grand in their trading account and it's
grand in their trading account and it's simple for people to understand oh you
simple for people to understand oh you turn 10 grand into a million fantastic I
turn 10 grand into a million fantastic I want to do that too follow a few lines
want to do that too follow a few lines on a
on a chart the other most common one is if
chart the other most common one is if older
older guys um
guys um they'll say that they worked at hedge
they'll say that they worked at hedge funds or investment Banks or that they
funds or investment Banks or that they they they work at a hedge fund now or
they they work at a hedge fund now or they run their own hedge funds it's
they run their own hedge funds it's complete
complete nonsense if they did work at a bank it's
nonsense if they did work at a bank it's probably in the support function and
probably in the support function and they'll have no controlled function so
they'll have no controlled function so they'll be working in it or operations
they'll be working in it or operations or even working on the trading desk and
or even working on the trading desk and getting the Traders
getting the Traders coffee if then if they haven't been
coffee if then if they haven't been regulated to perform the function
regulated to perform the function they've they've been at the bank and not
they've they've been at the bank and not performed a controlled function
performed a controlled function so it means they were in support the
so it means they were in support the hedge fund one is very
hedge fund one is very disingenuous because retail Traders have
disingenuous because retail Traders have been picking up newspapers and watching
been picking up newspapers and watching TV for the last decade reading all about
TV for the last decade reading all about these whiz guys in the market called
these whiz guys in the market called hedge fund
hedge fund managers and apparently according to
managers and apparently according to charlott and trading Educators all you
charlott and trading Educators all you have to do to be a hedge fund manager is
have to do to be a hedge fund manager is open a retail brokerage account and put
open a retail brokerage account and put five grand in
five grand in it that's all you have to do and you can
it that's all you have to do and you can call yourself a hedge fund manager wrong
call yourself a hedge fund manager wrong a hedge fund is a very very specific
a hedge fund is a very very specific investment vehicle with very specific
investment vehicle with very specific parameters and moving pots very specific
parameters and moving pots very specific infrastructure and you need five
infrastructure and you need five things to be defined as a hedge fund you
things to be defined as a hedge fund you need an offshore registered fund 80% of
need an offshore registered fund 80% of them are registered in Cayman
them are registered in Cayman Islands you need an onshore management
Islands you need an onshore management company so that's usually in New York
company so that's usually in New York London
London Geneva Singapore Hong Kong
Geneva Singapore Hong Kong Sydney the offshore fund you have two
Sydney the offshore fund you have two char
char charges you have the management fee so
charges you have the management fee so the offshore fund is charged by the
the offshore fund is charged by the management company a fee to run the
management company a fee to run the assets per
assets per year and then you have a performance fee
year and then you have a performance fee so it's usually one or 2% management fee
so it's usually one or 2% management fee 20% performance you have a third party
20% performance you have a third party administrator so what they're doing
administrator so what they're doing every day is making sure that the
every day is making sure that the management
management company is implementing the agreed
company is implementing the agreed mandate from the offshore fund for the
mandate from the offshore fund for the for the strategy that investors have
for the strategy that investors have invested
invested in you need a prime brokerage agreement
in you need a prime brokerage agreement with a top 10 investment Bank no
with a top 10 investment Bank no Investment Bank will look at you unless
Investment Bank will look at you unless you got $30 million commitment up front
you got $30 million commitment up front total waste of their time investment
total waste of their time investment Banks want clients they want big clients
Banks want clients they want big clients who are going to trade and you need a
who are going to trade and you need a seriously strong track record minimum
seriously strong track record minimum three years probably five
three years probably five years obvious question why don't we set
years obvious question why don't we set up a hedge
we are not the hedge fund taking investors money to make investors
investors money to make investors Rich we are the
Rich we are the investor so the front door of the
investor so the front door of the institute there's education but we're
institute there's education but we're also trading our own money and we have
also trading our own money and we have 40 trading accounts within the Institute
40 trading accounts within the Institute and if we find good people we seed them
and if we find good people we seed them on power of attorney with real money and
on power of attorney with real money and they get to trade our
they get to trade our money now it's not a requirement you can
money now it's not a requirement you can just exist in the infrastructure ructure
just exist in the infrastructure ructure and be good and join the community and
and be good and join the community and help everybody out that's fine but that
help everybody out that's fine but that that's the way we look at things we want
that's the way we look at things we want to invest in Traders we don't want to
to invest in Traders we don't want to take outside money and if you look at
take outside money and if you look at these guys the weathered faces of the
these guys the weathered faces of the mentors over here and
mentors over here and mine we've all been in the industry for
mine we've all been in the industry for years we've done our time when you wake
years we've done our time when you wake up at 5:00 in the morning for 10 15 20
up at 5:00 in the morning for 10 15 20 years to make other people money and to
years to make other people money and to make shareholders and investors richer
make shareholders and investors richer and you make aot of money yourself on
and you make aot of money yourself on the way when you made a certain amount
the way when you made a certain amount of money you don't need to get up
of money you don't need to get up anymore you can make a lot of money by
anymore you can make a lot of money by doing not not not a great deal so all
doing not not not a great deal so all our guys are retired and we just trade
our guys are retired and we just trade our own money and as you've seen hedge
our own money and as you've seen hedge funds are a very specific investment
funds are a very specific investment vehicle how much does it cost to set of
vehicle how much does it cost to set of a hedge fund structure over a million
a hedge fund structure over a million dollars if you don't need it you don't
dollars if you don't need it you don't do it it's stupid it's vanity over
do it it's stupid it's vanity over sanity so we saw manufactured Back
sanity so we saw manufactured Back stories IB agreement regulatory history
stories IB agreement regulatory history manufactured Back stories what about
manufactured Back stories what about manufactured trades and deception you'll
manufactured trades and deception you'll see this a lot in the online
see this a lot in the online World you'll see lots of Educators
World you'll see lots of Educators active on social
active on social media posting screenshots of charts and
media posting screenshots of charts and this is essenti essentially hindsight
this is essenti essentially hindsight trading so for example posting a picture
trading so for example posting a picture of a chart on social media with an arrow
of a chart on social media with an arrow that points here and an arrow that
that points here and an arrow that points there saying I bought it here I
points there saying I bought it here I sold it here
sold it here congratulations well anyone can do that
congratulations well anyone can do that anyone can pull up a chart and say I
anyone can pull up a chart and say I should have bought it at five and I
should have bought it at five and I should have sold it at
should have sold it at eight it's just
eight it's just [ __ ] so that's hindsight
[ __ ] so that's hindsight trading what about predicted
trading what about predicted trading predicted trading is very
trading predicted trading is very disingenuous
disingenuous because people who don't understand the
because people who don't understand the industry can fall for it very
industry can fall for it very easily so what about posting a chart
easily so what about posting a chart before an event with support and
before an event with support and resistance and saying prepare for the
resistance and saying prepare for the big move and then afterwards you
big move and then afterwards you actually get a screenshot of a real
actually get a screenshot of a real trading
trading account with a showing a profit of say
account with a showing a profit of say $3,248 with a a narrative next to it
$3,248 with a a narrative next to it that says just made 3,2 $ 48 it's only
that says just made 3,2 $ 48 it's only 10: a.m. that's me done for the day I'm
10: a.m. that's me done for the day I'm off to the
beach this quite literally is the oldest trick in the book and it's been going on
trick in the book and it's been going on since the
1920s they've got two trading accounts they go long in one and short
accounts they go long in one and short in the other and they post a screenshot
in the other and they post a screenshot of the one that makes money
and it's the oldest trick in the book because it actually comes from
because it actually comes from Brokers because in the old days Brokers
Brokers because in the old days Brokers were advisory Brokers they would advise
were advisory Brokers they would advise their clients what to go long and what
their clients what to go long and what to go short in the market and if you've
to go short in the market and if you've got a 100 clients and you're an advisory
got a 100 clients and you're an advisory broker and this is going all the way
broker and this is going all the way back to the
back to the 20s do you tell all your clients your
20s do you tell all your clients your 100 clients if you have an idea to go
100 clients if you have an idea to go long do you tell all of them to go long
long do you tell all of them to go long of course not you want to grow your
of course not you want to grow your business to 200 people so you tell 50 to
business to 200 people so you tell 50 to go long 50 to go short 50 of them make
go long 50 to go short 50 of them make money 50 of them lose money and then the
money 50 of them lose money and then the guys that lose money you help them on
guys that lose money you help them on the next
the next one and you grow your accounts from 100
one and you grow your accounts from 100 to 110 130
to 110 130 200 it's the oldest trick in the book
200 it's the oldest trick in the book all that's happened is it's be it's just
all that's happened is it's be it's just become modernized by the educator who is
become modernized by the educator who is the broker in Disguise that's all it
the broker in Disguise that's all it is and this is why
is and this is why basically any professional Trader with
basically any professional Trader with any respect for their career will never
any respect for their career will never post their
post their trades because they will lose all of
trades because they will lose all of their gravitas all of their respect in
their gravitas all of their respect in the professional trading Community
the professional trading Community because every professional Trader knows
because every professional Trader knows that they're probably bullshitting
that they're probably bullshitting because they know all the dirty
because they know all the dirty tricks so there's a side of the industry
tricks so there's a side of the industry that's totally opposite to everything
that's totally opposite to everything that you experience as a retail Trader
that you experience as a retail Trader but it also breeds a dependency culture
but it also breeds a dependency culture as well which is exactly the opposite of
as well which is exactly the opposite of the way Traders are taught in the real
the way Traders are taught in the real world like professional
world like professional Traders so people signing up for example
Traders so people signing up for example uh to hot stock
uh to hot stock lists here's the top five stocks today
lists here's the top five stocks today here's the stocks in Play here's the
here's the stocks in Play here's the potential news get long get short get
potential news get long get short get long get short what's happening there
long get short what's happening there that's the educator pushing the
that's the educator pushing the inversion narrative because they're
inversion narrative because they're working for the brok
working for the brok indirectly and what are you doing you're
indirectly and what are you doing you're depending on those lists or those ideas
depending on those lists or those ideas every
every day to try and generate a p&l for
day to try and generate a p&l for yourself try and generate a profit for
yourself try and generate a profit for yourself it's the total opposite of the
yourself it's the total opposite of the way you need to be taught you need to be
way you need to be taught you need to be coming up with your own ideas and
coming up with your own ideas and generating your own
generating your own ideas manufactured trades and deception
ideas manufactured trades and deception again deception this is how the online
again deception this is how the online World works with people who have a false
World works with people who have a false narrative they know everything they say
narrative they know everything they say is [ __ ] but they have to give the
is [ __ ] but they have to give the impression that other people believe it
impression that other people believe it so you get sucked in so there's two
so you get sucked in so there's two things you need to watch out for sock
things you need to watch out for sock puppets and Meat Puppets what's a sock
puppets and Meat Puppets what's a sock puppet well put a sock on your hand and
puppet well put a sock on your hand and speak you open 400 social media accounts
speak you open 400 social media accounts different email addresses different
different email addresses different names what do you do you pretend to be
names what do you do you pretend to be people commenting on all of your posts
people commenting on all of your posts and you're logging in to 80 of them per
and you're logging in to 80 of them per day and making the comments there's a
day and making the comments there's a huge amount huge huge amount online of
huge amount huge huge amount online of complete nonsense and people get sucked
complete nonsense and people get sucked in by it what's a meat puppet a meat
in by it what's a meat puppet a meat puppet is a sock puppet but it's a human
puppet is a sock puppet but it's a human they're hiring someone in Bangladesh
they're hiring someone in Bangladesh China India wherever Russia to log into
China India wherever Russia to log into the accounts and do it for them and
the accounts and do it for them and they'll upvote all their comments to get
they'll upvote all their comments to get them to the top so it looks like there's
them to the top so it looks like there's a narrative occurring
a narrative occurring that believes their [ __ ] so then
that believes their [ __ ] so then people get sucked in they build fake
people get sucked in they build fake websites so they'll comment on other
websites so they'll comment on other business people and then comment on
business people and then comment on themselves that's a sock puppet fake
themselves that's a sock puppet fake website fake
website fake reviews and they'll give reviews on
reviews and they'll give reviews on themselves obviously that are favorable
themselves obviously that are favorable and then reviews on their competitors
and then reviews on their competitors that are not
that are not favorable so L this is how they all do
favorable so L this is how they all do it or they can literally
it or they can literally engage in actual criminal
engage in actual criminal activity which is creating Equity curves
activity which is creating Equity curves of Trades that they claim they've done
of Trades that they claim they've done going back in time which shows them
going back in time which shows them making money over time and all they've
making money over time and all they've done is gone into a spreadsheet or the
done is gone into a spreadsheet or the back end of a website and typed in buy
back end of a website and typed in buy at $5 sell at
at $5 sell at $565 and it just updates their requis
$565 and it just updates their requis C and it's not audited by Third parties
C and it's not audited by Third parties it's not audited by accountancy
it's not audited by accountancy companies they don't have administrators
companies they don't have administrators it's self-administered and it's actually
it's self-administered and it's actually criminal
criminal activity because what you're actually
activity because what you're actually doing is you're Miss selling financial
doing is you're Miss selling financial performance lifestyle and social media
performance lifestyle and social media posts this is the this is the stuff that
posts this is the this is the stuff that that's designed to distract you so
that's designed to distract you so drastically
overemphasizing the conflation between trading and lifestyle
so of course if you know what you're doing it doesn't matter where you press
doing it doesn't matter where you press press the button it's less than 1% of
press the button it's less than 1% of what you'll do as a
what you'll do as a Trader it's the other 99% that's
Trader it's the other 99% that's important you can't be sitting by a
important you can't be sitting by a pool coming up with 10 trading di 10
pool coming up with 10 trading di 10 really good trading ideas per week you
really good trading ideas per week you actually do need to
work you can press the button when you're lyed by the swimming pool but you
you're lyed by the swimming pool but you have to do the other 99% of the work
and you can always tell an educator that's had no trading experience because
that's had no trading experience because they'll constantly push the lifestyle
they'll constantly push the lifestyle narrative it's creating the hopes and
narrative it's creating the hopes and dreams and how do they do it most
dreams and how do they do it most typical ways renting houses on Airbnb
typical ways renting houses on Airbnb and doing MTV crib style tours of their
and doing MTV crib style tours of their houses but they'll literally rent the
houses but they'll literally rent the house for a day and they don't own it
house for a day and they don't own it it's rented for a day or they'll rent a
it's rented for a day or they'll rent a Supercar for a day and in the house and
Supercar for a day and in the house and in the car
in the car they'll film all day and collect three
they'll film all day and collect three months of content and drip it out over
months of content and drip it out over three months so they build archives of
three months so they build archives of content to drip out the inversion
favorite is withdrawing cash and parading it saying that you made it in
parading it saying that you made it in trading that's where you get it
from prop movie Money store there's a million
million dollars on sale for 450
dollars on sale for 450 bucks in new style aged look
bucks in new style aged look 100s that's where they get it from and
100s that's where they get it from and of course when you wrap all of this up
of course when you wrap all of this up together the IB agreement the no
together the IB agreement the no regulatory history but telling you
regulatory history but telling you they're a professional Trader when
they're a professional Trader when they're actually a retail Trader the
they're actually a retail Trader the manufactured backstory the manufactured
manufactured backstory the manufactured trades and ception practices that they
trades and ception practices that they engage in and the lifestyle and social
engage in and the lifestyle and social media
media posts of course the
posts of course the cherry on the top of the cake is the
cherry on the top of the cake is the reason why they do it is because they
reason why they do it is because they want to inspire
want to inspire you so you can one day be like
you so you can one day be like them so you open a trading
account 20 days later you're gone congratulations
but there's other areas of trading infrastructure where IB Agreements are
infrastructure where IB Agreements are very
very important trust me when I say this IB
important trust me when I say this IB Agreements are everywhere in trading
Agreements are everywhere in trading they're not just with Educators they are
everywhere they just work in slightly different ways so they're in manage
different ways so they're in manage programs automated or algorithmic manag
programs automated or algorithmic manag programs social
programs social trading and with online forums and
trading and with online forums and information vendors let's start with
information vendors let's start with manage programs so there's a difference
manage programs so there's a difference between a sophisticated investor and a
between a sophisticated investor and a retail investor retail investors are
retail investor retail investors are usually under
usually under $500,000 qualified sophisticated
$500,000 qualified sophisticated investors are over $500,000 qualified
investors are over $500,000 qualified usually with industry
usually with industry experience so there's a gap in the
experience so there's a gap in the market between retail Traders and
market between retail Traders and funds where sophisticated investors
funds where sophisticated investors invest in hedge funds because hedge
invest in hedge funds because hedge funds will only take a minimum of a
funds will only take a minimum of a million 2 million and you first have to
million 2 million and you first have to be qualified as a sophisticated investor
be qualified as a sophisticated investor retail Traders can't invest in
retail Traders can't invest in them so what do retail Traders invest in
them so what do retail Traders invest in oh this
oh this infrastructure that is supposed to look
infrastructure that is supposed to look like hedge funds called managed programs
like hedge funds called managed programs so you have these guys who are managing
so you have these guys who are managing retail accounts where you give them
retail accounts where you give them money to
money to trade they've all got IB agreements with
trade they've all got IB agreements with the Brokers every single one of them so
the Brokers every single one of them so there's a conflict of interest and what
there's a conflict of interest and what tends to happen 90% lose money why
tends to happen 90% lose money why because when their managed account goes
because when their managed account goes up in value they churn like crazy they
up in value they churn like crazy they trade they trade they trade they
trade they trade they trade they trade and then the commission goes in
trade and then the commission goes in their back pocket from The Brokerage
their back pocket from The Brokerage company as a rebate and when they're
company as a rebate and when they're down they just churn less so it's a
down they just churn less so it's a churning mechanism what about if we
churning mechanism what about if we automate that so we take away the
automate that so we take away the human and we say all you have to do is
human and we say all you have to do is put money in this trading account and
put money in this trading account and every
every time this particular account
time this particular account trades you do exactly the same trade so
trades you do exactly the same trade so it's automated so there's no human
it's automated so there's no human managing it the human is managing their
managing it the human is managing their own money and you're just copying their
own money and you're just copying their trades what about if we automate that
trades what about if we automate that now the way the way that's set up is you
now the way the way that's set up is you have what's called a master account at
have what's called a master account at The Brokerage company and then you have
The Brokerage company and then you have hundreds of retail traders who want to
hundreds of retail traders who want to Outsource
Outsource they're trading to somebody who's
they're trading to somebody who's supposed to be
good what's happening there well the guy with the master account has an IB
with the master account has an IB agreement with the brokerage
agreement with the brokerage company so every time the master account
company so every time the master account trades or that guy trades you
trades or that guy trades you automatically
automatically trade it's the same thing it's just two
trade it's the same thing it's just two separate accounts instead of one so
separate accounts instead of one so what's happened there well the broker
what's happened there well the broker has just outsourced pickpocketing to a
machine what about social trading you've seen them all these platforms where you
seen them all these platforms where you go online and you see all these guys in
go online and you see all these guys in weird places around the world with
weird places around the world with nicknames Forex Master
nicknames Forex Master 179 was up 100% last week based in
Kazakhstan the new Master Trader we're promoting on the platform
promoting on the platform what's he done he's turned $100 into
what's he done he's turned $100 into $200 and you're about to give them 510
$200 and you're about to give them 510 15 2500
15 2500 Grand they're never going to be able to
Grand they're never going to be able to manage that money they've got
manage that money they've got lucky because they never advertise how
lucky because they never advertise how much money they're actually managing or
much money they're actually managing or very rarely but something that's very
very rarely but something that's very very very rarely
very very rarely advertised and no one really knows the
advertised and no one really knows the real truth about it unless you're inside
real truth about it unless you're inside the industry 80% % of their profiles are
the industry 80% % of their profiles are fake the people don't even exist they've
fake the people don't even exist they've created fake profiles and the social
created fake profiles and the social trading platform is The Brokerage
trading platform is The Brokerage platform they own
platform they own it or if they don't own it they have an
it or if they don't own it they have an IB agreement with the brokerage platform
IB agreement with the brokerage platform so what are you doing well you're just
so what are you doing well you're just doing the previous example the broker is
doing the previous example the broker is fire has set up an algorithm that fires
fire has set up an algorithm that fires off
off signals through certain accounts and
signals through certain accounts and you've set up a a sub account under a
you've set up a a sub account under a master account
master account that's all you've done and then you're
that's all you've done and then you're automatically copying the trades of that
automatically copying the trades of that person that doesn't
person that doesn't exist and all these guys get away with
exist and all these guys get away with it because they're regulated in places
it because they're regulated in places like Cyprus and Malta which are in the
like Cyprus and Malta which are in the EU but they can actually passport their
EU but they can actually passport their regulation into
regulation into London so they end up with FCA
London so they end up with FCA regulation when they really shouldn't
regulation when they really shouldn't and the The Regulators have actually
and the The Regulators have actually started coming down really hard them in
started coming down really hard them in the last few years and there's been
the last few years and there's been multiple investigations into the social
multiple investigations into the social trading platform sites and they've
trading platform sites and they've actually found that 80% of them of fake
actually found that 80% of them of fake profiles so all the owners of these
profiles so all the owners of these platforms for the last two years have
platforms for the last two years have actually been looking for an exit at
actually been looking for an exit at favorable
favorable prices and yours truly was offered one
prices and yours truly was offered one of them for 10
of them for 10 million so we decided to send in a
million so we decided to send in a couple of people to do some due
couple of people to do some due diligence and confirmed two weeks later
diligence and confirmed two weeks later 80% of the profiles are
80% of the profiles are fake well done you've just been duped
fake well done you've just been duped again IB IB contracts or
again IB IB contracts or Brokers online forums do you think
Brokers online forums do you think online forums were built for your
online forums were built for your benefit so you can go on and chat to
benefit so you can go on and chat to some guys who you don't even know about
some guys who you don't even know about stocks Forex
stocks Forex Commodities they're not built for your
Commodities they're not built for your benefit a lot of the profiles are again
benefit a lot of the profiles are again fake and the Forum owners the company
fake and the Forum owners the company that own them are actually incentivized
that own them are actually incentivized by IB
by IB agreements try clicking on the broker
agreements try clicking on the broker ads on the right hand side of the screen
ads on the right hand side of the screen see what
see what happens new window opens URL check the
happens new window opens URL check the URL what it says it's an affiliate
URL what it says it's an affiliate program and they have an IB agreement
program and they have an IB agreement with the broker that's advertising on
with the broker that's advertising on their
their platform we've downloaded many of the
platform we've downloaded many of the company's accounts to forensically go
company's accounts to forensically go through them to see where they make
through them to see where they make their money and how they make their
their money and how they make their money because we see the URL links as
money because we see the URL links as affiliate links and we know they're
affiliate links and we know they're getting paid by the broker in
getting paid by the broker in commission so you go
commission so you go on to companies house download the last
on to companies house download the last year's accounts accounts
year's accounts accounts before what do they how do they make
before what do they how do they make their money mostly through marketing and
their money mostly through marketing and advertising and what is marketing and
advertising and what is marketing and advertising Revenue it's Brokers paying
advertising Revenue it's Brokers paying rebates on IB
rebates on IB agreements you need to understand how
agreements you need to understand how the industry works so what's going to
the industry works so what's going to happen when you go on an online Forum
happen when you go on an online Forum well the online forums are in direct
well the online forums are in direct competition with trading
Educators so what's their narrative all education is crap well of course most of
education is crap well of course most of it is because most trading Educators
it is because most trading Educators have IB agreements where they get a
have IB agreements where they get a percentage rebate but there are real
percentage rebate but there are real players in the in the vast minority and
players in the in the vast minority and we one of them but what what are they
we one of them but what what are they going to push on their platform they're
going to push on their platform they're going to diss all Educators and they're
going to diss all Educators and they're going to diss Brokers that are not
going to diss Brokers that are not advertising with
advertising with them and they're going to push you with
them and they're going to push you with the inversion narrative and they're
the inversion narrative and they're going to promote forums that promote the
going to promote forums that promote the inversion narrative and send you and
inversion narrative and send you and push you towards the Brokers they'll
push you towards the Brokers they'll even set up fake profiles
even set up fake profiles themselves and they'll call themselves
themselves and they'll call themselves for example Veterans as having been on
for example Veterans as having been on the forum for 10 years and added lots of
the forum for 10 years and added lots of content to The Forum that other accounts
content to The Forum that other accounts that are fake respect so they're
that are fake respect so they're basically sock
basically sock puppets and they'll push you towards the
puppets and they'll push you towards the Brokers so you think you're talking to a
Brokers so you think you're talking to a guy that's got a reputation that's good
guy that's got a reputation that's good it's a guy working at The
Forum you need to be very very suspicious of how all these guys work
suspicious of how all these guys work it's there's huge conflicts of interest
it's there's huge conflicts of interest everywhere so consider what you've been
everywhere so consider what you've been shown today just think about everything
shown today just think about everything how everything
how everything works how the parameters of the industry
works how the parameters of the industry are l set up for retail to fail the
are l set up for retail to fail the infrastructure was built for retail to
infrastructure was built for retail to fail not for them to
fail not for them to benefit how hedge funds Pension funds
benefit how hedge funds Pension funds and investment banks are the largest
and investment banks are the largest payers of exchange
payers of exchange fees and exchanges need them to survive
fees and exchanges need them to survive to maintain the status
to maintain the status quo how investment banks in particular
quo how investment banks in particular absolutely require dumb money to exist
absolutely require dumb money to exist and they enable the infrastructure by
and they enable the infrastructure by providing the credit the financing to
providing the credit the financing to retail brokers
retail brokers how investment Banks need their largest
how investment Banks need their largest commission payers hedge funds and
commission payers hedge funds and Pension funds to survive so they
Pension funds to survive so they continuously get
continuously get paid how retail Brokers and their IB
paid how retail Brokers and their IB incentivized educators are literally
incentivized educators are literally contracted and
contracted and incentivized by the infrastructure for
incentivized by the infrastructure for retail to fail so everyone gets paid how
retail to fail so everyone gets paid how retail Brokers and Charlton Educators
retail Brokers and Charlton Educators constantly push the inversion Nar
constantly push the inversion Nar how as a retail Trader with a small
how as a retail Trader with a small account you don't really have a choice
account you don't really have a choice you have to trade on the platforms
you have to trade on the platforms that's how you get access and how
that's how you get access and how Regulators will never actually prevent a
Regulators will never actually prevent a problem they will only ever react to
problem they will only ever react to casualties of past problems in the
casualties of past problems in the markets and then as now we've stated all
markets and then as now we've stated all this and we've got to this point I want
this and we've got to this point I want you to ask yourself a very very
you to ask yourself a very very important question
is it even possible for retail traders to make
money you've got to access the platforms so let's have a show of
hands who believes retail Traders can't make
money one okay who believes retail Traders can make
Traders can make money okay you're right but like right
money okay you're right but like right at the beginning when we said the most
at the beginning when we said the most important
important thing is to look at how the industry
thing is to look at how the industry Works what did I say at the
Works what did I say at the beginning look at how the people who do
beginning look at how the people who do well in the industry
well in the industry work and if you're a retail Trader you
work and if you're a retail Trader you can make money if you find those people
can make money if you find those people and emulate
them it's pretty straightforward it's like walking into any
like walking into any industry find the players who win and do
industry find the players who win and do what they do
what they do form
form 10K it's an annual
10K it's an annual report in the states for a public
report in the states for a public company gives you all the forensics of
company gives you all the forensics of the company who should we look at in the
the company who should we look at in the trading industry who's extremely
trading industry who's extremely successful to
successful to see what their odds are of making
see what their odds are of making money yes why don't we look at Goldman
sax that's where all the most successful traders in the world seem to come from
traders in the world seem to come from so let's find out how they make their
money go online type in Goldman sax 10K and type in the year you'll find it
10K and type in the year you'll find it in the first two links it's out every
in the first two links it's out every year it's an annual
year it's an annual report between Pages 95 and
report between Pages 95 and 105 you will always find this
105 you will always find this chart and it tells you the amount of
chart and it tells you the amount of money that Goldman Sachs makes or loses
money that Goldman Sachs makes or loses per
per day how many days they make and
day how many days they make and lose so what have we got here intervals
lose so what have we got here intervals of $25 million
of $25 million okay on the right hand side are days
okay on the right hand side are days where they make money the leftand side
where they make money the leftand side days when they lose money and how much
days when they lose money and how much they make and how much they lose so in
they make and how much they lose so in the year 2015 Goldman Sachs made money
the year 2015 Goldman Sachs made money on 212 days in the trading year and lost
on 212 days in the trading year and lost 38 days and this is trading operations
38 days and this is trading operations pure trading nothing to do with m&a
pure trading nothing to do with m&a commissions or anything like this so
commissions or anything like this so pretty skewed to the right hand
pretty skewed to the right hand side and you can see that on a typical
side and you can see that on a typical day when they make money they make
day when they make money they make between $25 to $50
between $25 to $50 million so there's also a tail out there
million so there's also a tail out there as well look at the tail on the right
as well look at the tail on the right hand side where there's up to $100
hand side where there's up to $100 million 34 days out of the trading year
million 34 days out of the trading year here they're making $100
here they're making $100 million amazing right why do you think
million amazing right why do you think they're making $100
million because they call the markets correct the big situations where markets
correct the big situations where markets move they get it right and then when the
move they get it right and then when the markets don't move they trade in
markets don't move they trade in different ways and they just make money
different ways and they just make money every day do they go home with flat
every day do they go home with flat positions every day no they're running
positions every day no they're running multi-billion dollar portfolios they
multi-billion dollar portfolios they just let the portfolio work and they let
just let the portfolio work and they let the money come
the money come in and they don't stand in the way of it
in and they don't stand in the way of it huge overnight risk you can speak to
huge overnight risk you can speak to Chris Kathy about it later at the pub we
Chris Kathy about it later at the pub we used to run crazy
used to run crazy numbers couple of billion dollars on the
numbers couple of billion dollars on the pan European trading desk we'd have
pan European trading desk we'd have between 200 and 400 million of that
between 200 and 400 million of that risk and we'd run portfolios and that
risk and we'd run portfolios and that was even back in the early 2000s we
was even back in the early 2000s we weren't day
weren't day trading just big portfolios that make
trading just big portfolios that make money so
money so 2015 was that a
2015 was that a fluke was that a
one-off you can actually go back all the way to
way to 99 but let's go back a few years see
99 but let's go back a few years see what
2011 you can go all the way back to the late 90s since they became a public
late 90s since they became a public company and started putting out these
company and started putting out these numbers publicly it's the same every
numbers publicly it's the same every single
single year why
year why what percentage of retail Traders lose
what percentage of retail Traders lose money what are they
money what are they doing everything on the right hand side
doing everything on the right hand side of the chart we looked at
of the chart we looked at earlier what percentage of days do
earlier what percentage of days do Goldman Sachs make money
Goldman Sachs make money 90 what are they doing everything on the
90 what are they doing everything on the left hand side of the chart that we
left hand side of the chart that we looked at
looked at earlier it's not that difficult to work
earlier it's not that difficult to work out if you know what you're looking
out if you know what you're looking for so shouldn't we be doing exactly
for so shouldn't we be doing exactly what these guys do in our own trading
what these guys do in our own trading accounts and become the most annoying
accounts and become the most annoying clients of retail brokers in the
clients of retail brokers in the world guys who make
world guys who make money everything that you've got to do
money everything that you've got to do in your retail trading account needs to
in your retail trading account needs to be the same way that these guys do it on
be the same way that these guys do it on the left hand side so you have access to
the left hand side so you have access to the platforms it's necessary to use them
the platforms it's necessary to use them but you do everything in the opposite
but you do everything in the opposite way to the way they want you to do
way to the way they want you to do things and you learn how to do it
things and you learn how to do it properly and there's no shortcuts You'
properly and there's no shortcuts You' just got to do
just got to do it so right back to the beginning be
it so right back to the beginning be warned our campaign continuously for the
warned our campaign continuously for the last five years is to First educate you
last five years is to First educate you on how the industry
on how the industry works so you don't make the stupid
works so you don't make the stupid mistakes that everyone else
mistakes that everyone else makes that's what you got
makes that's what you got today the next stage is to educate you
today the next stage is to educate you on how to actually make money so how you
on how to actually make money so how you actually
actually emulate professional traders who are
emulate professional traders who are real professional
real professional traders who have got the experience been
traders who have got the experience been there done it and have made a lot of
there done it and have made a lot of money and continue to make
money and continue to make money you've just got to go straight to
money you've just got to go straight to the
the source so you got to be woke and I hope
source so you got to be woke and I hope this is woken you
this is woken you up because the reality is is if you
up because the reality is is if you don't go down this path you will go down
don't go down this path you will go down the other path and you will blow up and
the other path and you will blow up and we don't mind will be around next year
we don't mind will be around next year the year after year
the year after year later you'll just come
later you'll just come back but it'll cost you a lot of money
back but it'll cost you a lot of money to learn the lesson if you haven't
to learn the lesson if you haven't learned it already I guarantee you
learned it already I guarantee you there's people in this room that have
there's people in this room that have learned it already most retail traders
learned it already most retail traders in the US lose 20 $30,000 before they
in the US lose 20 $30,000 before they decide trading is not for
decide trading is not for them but they never get woke they never
them but they never get woke they never find out the real
find out the real reason and the real reason is the stuff
reason and the real reason is the stuff you've seen today
you've seen today you've got to go straight to the
you've got to go straight to the source so just don't waste years of your
source so just don't waste years of your life it's no skin off our nose if you do
life it's no skin off our nose if you do we'll still be
here so here's our general website we've got a new website itpm
got a new website itpm tocom you can sign up for free seminars
tocom you can sign up for free seminars around the
around the world/ seminars if you want to go
world/ seminars if you want to go straight to the online
straight to the online education go to it tpm.com
education go to it tpm.com education we've got two programs all the
education we've got two programs all the information's there
information's there online we've got mentoring programs
online we've got mentoring programs direct with our trading mentors and all
direct with our trading mentors and all the guys are hired on very strict
the guys are hired on very strict requirements they have to have been
requirements they have to have been professional Traders for years and made
professional Traders for years and made significant
significant money and they have to prove
money and they have to prove it trading accounts IB
it trading accounts IB agreements itpm do.com tradeing
agreements itpm do.com tradeing accounts and if you got any further
accounts and if you got any further questions go to the FAQ
questions go to the FAQ section check all those questions if you
section check all those questions if you have any further further
have any further further questions after you've seen the FAQs and
questions after you've seen the FAQs and the answers send us a message through
the answers send us a message through the website through contact
the website through contact form and we have two acronyms at The
form and we have two acronyms at The Institute which I'll leave you
Institute which I'll leave you with gtf and
with gtf and dfiu get the [ __ ] out of here and don't
dfiu get the [ __ ] out of here and don't [ __ ] it up I'll see you at the pub
[ __ ] it up I'll see you at the pub [Applause]
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