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You know, maybe at the beginning
five six thousand a month, and then

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you know, in eighteen to twenty
four months, through the ability to scale

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that account value, they take us
up the two point five million in tradable

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dollars that they'll give us, so
every time we click a ten percent miles

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so they'll double the account in about
eighteen twenty four months. Our goal is

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for our members to earn about fifty
to sixty km month and pass up for

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crying cash flow without doing the work
themselves. You are listening to Carrie Letts's

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Financial Survival Network where you get valuable
information you just can't find anywhere else to

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00:00:27,839 --> 00:00:33,560
thrive in today's trying times. You
need the Financial Survival Network now more than

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00:00:33,640 --> 00:00:38,600
ever. Go to Financial Survival Network
dot com and get your free newsletter and

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00:00:38,719 --> 00:00:48,719
gift. Financial Survival Network now more
than ever, and welcome. You aren't

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00:00:48,759 --> 00:00:52,880
listening to watching the Financial Survival Network. I'm your host, Carrie Letts.

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Well, these are dangerous times.
Fortunes can be made and lost in the

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link of an eye. Hopefully you'll
be the one making the fortune and not

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losing it. About to hear from
Kevin Jefferson, They seasoned the FX investor

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who can help you to basically earn
passive income through FX investing or X investing.

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I'm really curious to hear about it. Kevin, your season for X

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Trading Pro. What's the secret of
your success? Well, great to be

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with you, Kerry, thank you
for an opportunity to chat with you in

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the followers of your podcast. Really, the bottom line is really understanding what

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you're looking at when you're we're investing
in the market. And so a little

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bit about me. I've been in
finance a little over twenty one years and

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I started my career actually as as
a stockbroker with Merrill Lynch. Two months

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out of September eleventh, two thousand
and one was get going through interviews.

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Yeah, amazing time, right,
So I caught the market at the bottom,

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see if you need so, if
there's any any confidence, I knew

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how to pick a bottom and really
get you know, go and exploit that.

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But going into production in February two
thousands too, obviously nobody wants to

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buy stocks. And I think that
that period in my career with Merrill really

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is shaped a lot of how I
saw a lot of things as related to

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investing, and so one of the
best things about getting into the industry at

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the time that I did, I
had not lost anybody any money. And

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then the second best thing, or
maybe actually the best thing was I wasn't

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under any illusion that I had any
secret sauce or knowledge that people in nineteen

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ninety nine, for those of us
who were around back then, I thought

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that they had, and then when
two thousand came, they realized that they

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didn't. And so I actually provided
value to business owners and entrepreneurs by helping

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them, you know, decrease the
cost of capital through the lines of credit.

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Our Merrill had a great business financial
services sector, and so I exploited

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that gap. In what I learned
at the moment was there's always opportunities.

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I was doing one one percent live
or based interest only loan for wealthy owners

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who you know, refinance or house
for penny on the dollar. And so

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what I realized was, as long
as you're driving value, there'll be always

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be an opportunity. And so UM
I took that when I, you know,

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I went independent, started my own
firm in two thousand and five as

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an advisor. UM I always wanted
to. I remember a client of my

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h mister Sid Hutchinson. He was
a retired tailor, and I was working

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for Edward Jones at the time.
Between Merrill and my hold, I went

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to Edward Jones for about two years
and I remember we were sitting at this

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table and he was filling out some
paperwork to buy a bond or something,

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and he told me, you know, I've never seen anybody with a trade

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with an actual physical trade or you
know, an ability to do something h

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if they wanted to work, that
they couldn't work. And that that stuck

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with me because as an advisor,
as a as a you know, financial

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advisor, you're pretty much a philosopher
and you're a great salesperson and you're selling

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ideas, right, but you don't
really have a skill set outside of your

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ability to convince somebody to take action. Um, you don't really have a

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skill set that will guide you in
down margats in a lot of cases.

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I mean, that was one of
my biggest chat challenges with the advisory field

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was that so many advisors really didn't
know much about investing. In my opinion,

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some bid my mentor, who was
a million dollar producer when I came

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into production, he took me under
his wings and I saw him build out

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portfolios and that really intrigued me.
But but back to the point, I

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wanted to learn how to trade something, and so I started off reading books

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on trading. This. Obviously,
the internet was still in its infancy,

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and so you had to go to
Barnes and Noble and go pick up books

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and learn and both actually spend hours
reading about something and hopes that you actually

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got the information because obviously me and
Barnes and Noble people are selling books,

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and so you don't know what's real
and what's not, and so you have

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to do a lot of filtering.
And so I would say that I stumbled

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across four X In two thousand and
eight, I was moving back to Texas.

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I lived in Alabama for a while
and I moved back to Texas and

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I stumbled across it. With CNBC
had the scene called a Portfolio Challenge,

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and I had participated in it for
several years where you know, the best

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portfolio gets a million dollar prize or
whatever. And I never got the million

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dollars, but I did learn a
lot about how I saw the market.

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And so in two thousand and eight, f XCM had you know, had

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added the forest component and back then, you know, the euro was twice

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as valuable as the dollar. And
so I remember in this notional portfolio buying

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a lot of Euro, not understanding
anything about leverage or anything about what the

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risks associated were. And then I
went back and checked the portfolio. It

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expanded exponentially, like it had grown
a lot. So it caught my attention

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and it kind of sent me on
that journey. And so I used for

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X to become the trade that I
used to create the income that I wanted

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from my lifestyle. And at a
certain point after a couple of years to

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where I literally could have just gone
to Harbor and got a degree of what

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I gave to the markets, I
got mentorship. I paid, you know,

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several thousand dollars to fly out to
someone that spend a week with them,

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and they taught me about market structure
and how to look at the market

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from a from a wholesale standpoint as
opposed to a retail standpoint. And so

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it really flipped the odds in my
favor from being one of the you know,

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the thirty percent of traders who maybe
win or have a few people win,

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to the other side of the table. And I was able to replace

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my repractice income by becoming a trader. And so what makes trading four X

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I think very You know, now, the process that one uses, or

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that I used to trade the currency
markets is not any different than I would

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if I was trading the bond market
or another commodity. I've traded oil on

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my strategy. I've traded crypto on
my strategy. I shorted Tesla last year

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in April offs the eight hundred eyes. I bought it back at the one

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hundred lows and told my friends about
it so that they could get in because

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some were big Tesla fans and all
that stuff. So I only use that

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point to share that what I do
is really agnostic to the market, because

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it's all about supplying demand. When
you understand what the price cycle structure looks

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like, you can actually exploit those
opportunities and the increase your odds of success,

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which mine is about seventy eight to
eighty percent, get bread on my

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trades. And so what I liked
about four X versus stock and equity trading

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was really the power of leverage,
right, And so obviously leverage is what

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people do when they take out,
you know, loans or lines of credit

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and where they take out a loan
from a bay and then they go invested

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in the business. Obviously they're probablying
somebody else's capital at a cost to actually

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get access to other opportunities without putting
their own money at risk. And so

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one of the things with leverage was
where a dollar in the stock market for

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the late person has to go up
literally by one percent become two dollars.

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In the currency markets, a dollar
would actually have the buying power of maybe

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one hundred dollars. And so all
you have to do is grow that one

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hundred dollars notional amount by one percent
to get the same dollar. And you

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can do that on and on,
and that allows you to get to the

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point where now you're generating maybe annual
returns on a monthly basis. When I

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say annual returns, maybe you know, six to seven percent a month or

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more, you know, if you're
being conservative. And so I just like

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the aspects of it that allowed me
to do more faster and collapse time in

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my favor and take the right kind
of asymmetrical bet so that you can you

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can benefit. Okay, so I
mean you have to be a trader to

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do this. I mean, it
sounds like you've got to be able to

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execute it on a trade, get
out of it within seconds if you don't

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like where it's heading, and onto
the next too. Can everybody just do

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this? So the answer is yes, I believe most people can do this.

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Obviously, you know, as in
most things in life, everybody can

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do everything. But my company FM
trades dot com, we actually started off

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in the d I watched space D
do it Yourself trading and coincidentally, I

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was just on the phone call right
before we got on the podcast with one

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of my former students where he's always
a student. So one of my students

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who came through my boot camp and
he was referring somebody to me, and

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I hadn't talked to this guy probably
in two years, but he just remember

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the experience. And so I've taken
people from complete inexperience to be able to

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take the first probable probable trade probably
you know, and relatively you know,

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depending on what their interest level in
doing it was. But what I found

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in my boot camps when people would
come into Dallas where I lived, and

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we would train them in two days
and get them up to speed to learn

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how to trade the markets and then
we would mention them. I had There

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was a time back in twenty eighteen, right before a couple years before COVID,

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had a lot the doctors coming to
my class, and so one of

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the doctors asked me, you know, he was like, you know,

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I love the information. It makes
sense. But we rescheduled this class three

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times on account of me and my
other doctor because we had our owls and

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so their interest was in obviously creating
that passive recurring cash flow, but they

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didn't have the time, and so
he was like, how much would it

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just be for you to do it
for me? And it kind of got

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me on the path of what we
call DF why I done for you trading?

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And so now we've created a program
to where people don't you always get

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access to our online course where you
can self pace and that's lifetime to where

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you can actually learn how to trade
yourself. Because I do believe in empowerment

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and so that's always the main thing. But now we have it set up

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to where our members can join our
cash Flow Creation Club and we will build

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the cash flow on their behalf so
that they don't have to do it.

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And what that did was in the
case of like the doctor, it freed

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up his time and really the perceived
need to actually learn this very quickly.

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And so now you say, okay, I put it in the hands of

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a professional. They're building capital on
my behalf and out my ease with the

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process increases because first of all,
I see the cash flow increasing, I'm

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not having to do it myself,
and then if I ever choose to,

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I can do it on the other
side. And so we've actually ramped that

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up to where now we we help
our students work with prop trading firms.

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And what a prop trading firm is
UM. It's a company that their business

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model is built on you trading their
capital. And so now we have the

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cash Flow patient Club to where our
members use prop trading money. So UM,

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you've become a member of a cash
flow club and you get access to

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say like a two hundred thousand dollars
trading account. That's that the prop term

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PROP firm gives you UM, and
you have the pass and evaluation. So

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i've you know, we help you
with through that process and what you what

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you like pass evaluation. Now you're
in the passive recurring cash flow phase,

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and so what we do is we
use those accounts to build cash flow for

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our members without them having to do
the work on their own um as a

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member of our club. And so
it's just an ultimate passive cash flow thing.

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And it's it's the ultimate actually asymmetrical
bet because they're leveraging our expertise or

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expertise as a trader, they're leveraging
the prop firms capital, and all they're

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doing is committing their membership for us
to do it on their behalf. And

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so that looks like you know,
you know, maybe at the beginning five

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six thousand a month and then you
know, in eighteen to twenty four months,

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through the ability to scale that account
value, they take us up to

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two point five million and tradeable dollars
that they'll give us, so every time

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we click a ten percent milestone,
they'll double the account. And in about

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eighteen twenty four months, our goal
is for our members to earn about fifty

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to sixty K a month and pass
up for curring cash flow without doing the

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work themselves. A matter of fact, my tagline is I work with business

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owners helping them build that cash flow
without adding employees, overhead or more of

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what I call the BS associated with
a bid in business. And so the

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answer, the short answer to your
question is no, they don't have to

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do it on their own. We've
created a system that actually minimizes their risks

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to the point of not even have
to put their own capital in the market.

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It has been very successful over the
last four months since we literally start

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this program at the beginning of the
year in February, we've added fifteen million

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dollars in prop trading firm capital that
we're trading to build cash for for our

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members. And so it's a great
way for a lot of business owners.

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We have real estate investors, you
know, people who come in groups and

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and maybe you know, with the
real estate market being the way that has

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been, uh, they've come out
of projects and they've got you know,

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capital on the sideline, and you
know, people want to always put that

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capital. And so what I've shared
with them and show them is that now

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they can park, you know,
become a member, add the cash flow

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creation system on to what they're doing, and now upport they can still be

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earning cash flow and still have them
money liquid because they're not investing their own

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dollars. And now you can be
earning maybe five or six random month while

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you're waiting on that deal to come
along. And so it's a way to

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kind of buffer things, increase your
cash flow and keep your powder dry without

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help feel feel compelled to go and
take a risk that you maybe would wouldn't

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take on other circumstances. So it's
really about your creativity, man, Really,

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how great of you get and the
currency markets just because it's a you

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know, twenty four hour a day, five and a half day a week

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vehicle because of international it really just
gives you a lot of opportunities to succeed

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at that on a regular basis.
So how much sure you got to start

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with here? Our membership is fifteen
K, and that's an annual membership,

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so fifteen K for the first twelve
months, and our goal is to get

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you about you know, six to
seven grand a month started being off in

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passive cash flow, so about sixty
seventy grand a year off of that fifteen

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k, and then then it re
ups or half of that on the app

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on the anniversary because we paid a
lot of the upfront costs are getting started

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already, so it's not very expensive. You know, when when you think

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about the cost of capital these days
in which you can do. So,

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we tried to make the best as
medical bet we can while our biden value

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at the same time. So how
much how much here your fees are run

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on the service? Sure, So
the only fee that the only actually benefits

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to our company financially is our membership
fee. So the fifteen K membership,

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the initiation fee that takes care of
all of our support and technology and everything

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that we do on our side.
Um, the members actually share the cash

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flow that they create with the prop
firm eighty twenty. So the members get

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eighty percent of the cash flow,
so that five or seven K is net

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of net of the twenty percent,
and there's no other fee. Um,

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they've been not paying any monthly fees. There's no technology fees or anything like

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that. They're not liable for the
capital because it's an agreement at a contractional

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agreement that the firm. You know
what how this works and how it keeps

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people going is that a firm is
not allowing members to actually risk the whole

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two hundred thousand dollars that they give
them. They have really tight parameters and

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that's why having a professional there helps
them keep it within those guidelines. They

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only allow you really to risk maybe
three to six percent of the account.

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So if they're only putting out six
to twelve k in exchange for a twenty

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percent share of the cash flow that
we create, and so if we fall

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outside those parameters, we reset,
you know, they reset us at two

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hundred K. And so that's really
the downside of risk. Let's say we

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get it to two point five million
dollars and we're generating safety to seventy k

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00:14:41,039 --> 00:14:46,320
a month and passive can flow,
and then we violate the hard risk rules,

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so we blow the blow the risk
by you know, more than three

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percent in a day on what is
six percent total, they'll start us back

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from two point five million dollars two
hundred thousand, and so that the opportunity

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costs of time of earning only six
thousand versus seeks to seventy thousand. That's

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the opportunity cost of time and then
also performance risk. And my worst year

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performance since twenty one when I started
the cash flow program at all was twenty

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one forty percent in the middle of
twenty twenty one, all right in the

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middle of COVID. So um,
so if you can deal with about a

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00:15:16,440 --> 00:15:20,519
one to two percent a month compounded
return getting you about forty grand off of

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a fifteen king membership, then it
makes sense there's no other costs associated with

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it for our merrors. Interesting.
Interesting, So why was the return only

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twenty one percent in uh twenty twenty
one? Well, I love that,

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00:15:35,879 --> 00:15:37,519
dad, Thanks thanks for pointing out
the one be that I had in all

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00:15:37,559 --> 00:15:41,480
the a's that I had. Okay, thank you dad. Uh So within

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so the reason that thing so so
that was that was the account. So

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we have two verticals. So obviously
we started in a vertical where people putting

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their own principle up and we grow
it and so that's a little bit more

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aggressive. And our goal is about
seven to seven and a half percent a

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month because we're trying to deal with
the cashflo every year. Um. And

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so the first year we ran it, what I wanted to do is actually

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just prove out that the model worked. And I wanted to be very conservative

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with that because I didn't want to
scare anybody or you know, create any

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hictups to where you know, people
would be afraid. And so, uh,

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you know, when you generate a
twenty two percent return when the market's

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going down, um, a lot
of people become believes in then when you

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ratchet it up, they believe in
that as well, So it was really

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more strategic for my standpoint. Interesting. Interesting, So are you agnostic as

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far as where the market setting,
where the dollar is setting? Uh?

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And your great question answer, I
absolutely am. I truly looked only at

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price. Price can in structure,
price action and structure. And actually I

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only trade so the dollars in between, because the dollar denominates so much,

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right, But I only trade the
British pound versus the Japanese end, So

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I don't even really concern myself on
a daily basis about the dollar. I

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do because it's I mean, it's
it's just built into the currency. But

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I trade one pair only. And
the reason is, you know, I

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trade the pounden is first of all, that has enough of a daily trading

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range that will allow me if if
the market is suited from a structural standpoint,

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it will allow me an opportunity on
an almost daily basis. But then

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also the GJ is one of the
toughest pairs to trade, and so I

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like that because it keeps a lot
of people out of it. And then

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second thirdly, um, the GJ
is actually very is very predictable that it

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has a it has a way of
moving that the kind of really repeats itself.

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And I found that philosophically was easier. You know, at one point

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I would trade twenty to twenty five
pair. You know, I'm trading the

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down thirty. I'm trying trading you
know, all these different currencies. And

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what I realized it's kind of like
relationships, right. So you can date

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a lot of people and you can
get to know a little bit about each

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of them. But once I really
settled in on one pair, it's like

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almost kind of get into a committed
relationship. And then you also you start

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to understand the characteristics and the nuances
of that pair to a point where you

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see things coming before they even happen
because you focus your energy on that.

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So GJA gives me what I need
is as far as building in cash flow,

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and that's all we've got to do. So I'm really agnosticed. What

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the dollar does. I have to
look up sometimes and look because people are

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asking about it, and I'm like, I really don't even know a care.

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You know, as long as we're
still in business as a country,

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I don't really care all right,
and I'll buy that. I'll buy it.

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So it's strictly technicals. You got
an algorithm like you're I assume some

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kind of bought involved here, or
you're just pulling these trades out of your

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00:18:25,319 --> 00:18:29,079
you know yourself, out of my
chance. Well, it's true. Actually

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I'm I'm I'm a discretionary trader and
I don't use any bots. One of

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the challenges with bots, in my
opinion, what I've seen is that people

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who program them, they programmed them
on a very suspicious set of presumptions,

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and so because those presumptions are faulty, a lot of times bots will they

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perform for a short period of time
and then they stop performing because they're taking

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assumptions that aren't right. Because that's
build back on the premise that most people

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don't understand the true structure and nature
of the market in the prie cycle.

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So I've only met one individuals,
an Indian gentleman out of New York.

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We're working on a platform at Dubai
that I was invited to be a part

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of as an FX trader, and
we were having conversations about automating the trading,

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and he was the only person who
gave me an answer that I felt

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satisfied with because he knew he understood
market structure in the wholesale nature of it.

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And so to answer your question,
I think the human element is very

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important in trading, and as long
as your discipline, which is why I've

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been doing this for fifteen plus years. I was only as your discipline,

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you can make plenty of money doing
it discretionarily. All right. People want

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to find out more about you,
connect with you on the web. But

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00:19:34,519 --> 00:19:38,759
where is the best place to go? Here? Best place though is um

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00:19:38,920 --> 00:19:44,960
FM trades dot com FM like a
radio station, trades with as dot com

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00:19:44,960 --> 00:19:48,720
On Instagram is the only place I
probably post picks outside of LinkedIn. Instagram.

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00:19:48,799 --> 00:19:56,119
My handle is at help Made Millionaire
HLP Made m Ade Millionaire. LinkedIn

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00:19:56,319 --> 00:20:00,720
is I think Kevin L. Jefferson
and then Facebook is the same. But

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00:20:00,799 --> 00:20:03,480
you just go to anfimtrace dot com. You can go to mysels from there.

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00:20:03,759 --> 00:20:04,920
All right, Well, there's a
link to it in the show notes

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00:20:06,000 --> 00:20:11,200
this interview on Financial Survival Network dot
com. Make sure you go sign up

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00:20:11,200 --> 00:20:12,799
for a free newsletter when you're there. If you've got a question for Kevin

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00:20:14,160 --> 00:20:18,720
myself, shoot us an email k
l at Kerry lutz dot com. Interesting

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00:20:18,720 --> 00:20:22,559
concept, Kevin. We'll definitely have
you back on more to expound a bond

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00:20:22,559 --> 00:20:26,319
it further, learn more about it, and we'll talk to you soon.

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00:20:26,880 --> 00:20:29,119
Right. Thank you, Kerry,
great to be with you. Enjoy the

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00:20:29,160 --> 00:20:34,039
day. Thanks for listening to carry
Letts's Financial Survival Network, your solution to

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00:20:34,039 --> 00:20:40,519
today's trying times. For the latest, go to Financial Survival Network dot com.

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00:20:40,519 --> 00:20:44,359
Financial Survival Network now more than ever,