You know, maybe at the beginning five six thousand a month, and then
you know, in eighteen to twenty four months, through the ability to scale
that account value, they take us up the two point five million in tradable
dollars that they'll give us, so every time we click a ten percent miles
so they'll double the account in about eighteen twenty four months. Our goal is
for our members to earn about fifty to sixty km month and pass up for
crying cash flow without doing the work themselves. You are listening to Carrie Letts's
Financial Survival Network where you get valuable information you just can't find anywhere else to
thrive in today's trying times. You need the Financial Survival Network now more than
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gift. Financial Survival Network now more than ever, and welcome. You aren't
listening to watching the Financial Survival Network. I'm your host, Carrie Letts.
Well, these are dangerous times. Fortunes can be made and lost in the
link of an eye. Hopefully you'll be the one making the fortune and not
losing it. About to hear from Kevin Jefferson, They seasoned the FX investor
who can help you to basically earn passive income through FX investing or X investing.
I'm really curious to hear about it. Kevin, your season for X
Trading Pro. What's the secret of your success? Well, great to be
with you, Kerry, thank you for an opportunity to chat with you in
the followers of your podcast. Really, the bottom line is really understanding what
you're looking at when you're we're investing in the market. And so a little
bit about me. I've been in finance a little over twenty one years and
I started my career actually as as a stockbroker with Merrill Lynch. Two months
out of September eleventh, two thousand and one was get going through interviews.
Yeah, amazing time, right, So I caught the market at the bottom,
see if you need so, if there's any any confidence, I knew
how to pick a bottom and really get you know, go and exploit that.
But going into production in February two thousands too, obviously nobody wants to
buy stocks. And I think that that period in my career with Merrill really
is shaped a lot of how I saw a lot of things as related to
investing, and so one of the best things about getting into the industry at
the time that I did, I had not lost anybody any money. And
then the second best thing, or maybe actually the best thing was I wasn't
under any illusion that I had any secret sauce or knowledge that people in nineteen
ninety nine, for those of us who were around back then, I thought
that they had, and then when two thousand came, they realized that they
didn't. And so I actually provided value to business owners and entrepreneurs by helping
them, you know, decrease the cost of capital through the lines of credit.
Our Merrill had a great business financial services sector, and so I exploited
that gap. In what I learned at the moment was there's always opportunities.
I was doing one one percent live or based interest only loan for wealthy owners
who you know, refinance or house for penny on the dollar. And so
what I realized was, as long as you're driving value, there'll be always
be an opportunity. And so UM I took that when I, you know,
I went independent, started my own firm in two thousand and five as
an advisor. UM I always wanted to. I remember a client of my
h mister Sid Hutchinson. He was a retired tailor, and I was working
for Edward Jones at the time. Between Merrill and my hold, I went
to Edward Jones for about two years and I remember we were sitting at this
table and he was filling out some paperwork to buy a bond or something,
and he told me, you know, I've never seen anybody with a trade
with an actual physical trade or you know, an ability to do something h
if they wanted to work, that they couldn't work. And that that stuck
with me because as an advisor, as a as a you know, financial
advisor, you're pretty much a philosopher and you're a great salesperson and you're selling
ideas, right, but you don't really have a skill set outside of your
ability to convince somebody to take action. Um, you don't really have a
skill set that will guide you in down margats in a lot of cases.
I mean, that was one of my biggest chat challenges with the advisory field
was that so many advisors really didn't know much about investing. In my opinion,
some bid my mentor, who was a million dollar producer when I came
into production, he took me under his wings and I saw him build out
portfolios and that really intrigued me. But but back to the point, I
wanted to learn how to trade something, and so I started off reading books
on trading. This. Obviously, the internet was still in its infancy,
and so you had to go to Barnes and Noble and go pick up books
and learn and both actually spend hours reading about something and hopes that you actually
got the information because obviously me and Barnes and Noble people are selling books,
and so you don't know what's real and what's not, and so you have
to do a lot of filtering. And so I would say that I stumbled
across four X In two thousand and eight, I was moving back to Texas.
I lived in Alabama for a while and I moved back to Texas and
I stumbled across it. With CNBC had the scene called a Portfolio Challenge,
and I had participated in it for several years where you know, the best
portfolio gets a million dollar prize or whatever. And I never got the million
dollars, but I did learn a lot about how I saw the market.
And so in two thousand and eight, f XCM had you know, had
added the forest component and back then, you know, the euro was twice
as valuable as the dollar. And so I remember in this notional portfolio buying
a lot of Euro, not understanding anything about leverage or anything about what the
risks associated were. And then I went back and checked the portfolio. It
expanded exponentially, like it had grown a lot. So it caught my attention
and it kind of sent me on that journey. And so I used for
X to become the trade that I used to create the income that I wanted
from my lifestyle. And at a certain point after a couple of years to
where I literally could have just gone to Harbor and got a degree of what
I gave to the markets, I got mentorship. I paid, you know,
several thousand dollars to fly out to someone that spend a week with them,
and they taught me about market structure and how to look at the market
from a from a wholesale standpoint as opposed to a retail standpoint. And so
it really flipped the odds in my favor from being one of the you know,
the thirty percent of traders who maybe win or have a few people win,
to the other side of the table. And I was able to replace
my repractice income by becoming a trader. And so what makes trading four X
I think very You know, now, the process that one uses, or
that I used to trade the currency markets is not any different than I would
if I was trading the bond market or another commodity. I've traded oil on
my strategy. I've traded crypto on my strategy. I shorted Tesla last year
in April offs the eight hundred eyes. I bought it back at the one
hundred lows and told my friends about it so that they could get in because
some were big Tesla fans and all that stuff. So I only use that
point to share that what I do is really agnostic to the market, because
it's all about supplying demand. When you understand what the price cycle structure looks
like, you can actually exploit those opportunities and the increase your odds of success,
which mine is about seventy eight to eighty percent, get bread on my
trades. And so what I liked about four X versus stock and equity trading
was really the power of leverage, right, And so obviously leverage is what
people do when they take out, you know, loans or lines of credit
and where they take out a loan from a bay and then they go invested
in the business. Obviously they're probablying somebody else's capital at a cost to actually
get access to other opportunities without putting their own money at risk. And so
one of the things with leverage was where a dollar in the stock market for
the late person has to go up literally by one percent become two dollars.
In the currency markets, a dollar would actually have the buying power of maybe
one hundred dollars. And so all you have to do is grow that one
hundred dollars notional amount by one percent to get the same dollar. And you
can do that on and on, and that allows you to get to the
point where now you're generating maybe annual returns on a monthly basis. When I
say annual returns, maybe you know, six to seven percent a month or
more, you know, if you're being conservative. And so I just like
the aspects of it that allowed me to do more faster and collapse time in
my favor and take the right kind of asymmetrical bet so that you can you
can benefit. Okay, so I mean you have to be a trader to
do this. I mean, it sounds like you've got to be able to
execute it on a trade, get out of it within seconds if you don't
like where it's heading, and onto the next too. Can everybody just do
this? So the answer is yes, I believe most people can do this.
Obviously, you know, as in most things in life, everybody can
do everything. But my company FM trades dot com, we actually started off
in the d I watched space D do it Yourself trading and coincidentally, I
was just on the phone call right before we got on the podcast with one
of my former students where he's always a student. So one of my students
who came through my boot camp and he was referring somebody to me, and
I hadn't talked to this guy probably in two years, but he just remember
the experience. And so I've taken people from complete inexperience to be able to
take the first probable probable trade probably you know, and relatively you know,
depending on what their interest level in doing it was. But what I found
in my boot camps when people would come into Dallas where I lived, and
we would train them in two days and get them up to speed to learn
how to trade the markets and then we would mention them. I had There
was a time back in twenty eighteen, right before a couple years before COVID,
had a lot the doctors coming to my class, and so one of
the doctors asked me, you know, he was like, you know,
I love the information. It makes sense. But we rescheduled this class three
times on account of me and my other doctor because we had our owls and
so their interest was in obviously creating that passive recurring cash flow, but they
didn't have the time, and so he was like, how much would it
just be for you to do it for me? And it kind of got
me on the path of what we call DF why I done for you trading?
And so now we've created a program to where people don't you always get
access to our online course where you can self pace and that's lifetime to where
you can actually learn how to trade yourself. Because I do believe in empowerment
and so that's always the main thing. But now we have it set up
to where our members can join our cash Flow Creation Club and we will build
the cash flow on their behalf so that they don't have to do it.
And what that did was in the case of like the doctor, it freed
up his time and really the perceived need to actually learn this very quickly.
And so now you say, okay, I put it in the hands of
a professional. They're building capital on my behalf and out my ease with the
process increases because first of all, I see the cash flow increasing, I'm
not having to do it myself, and then if I ever choose to,
I can do it on the other side. And so we've actually ramped that
up to where now we we help our students work with prop trading firms.
And what a prop trading firm is UM. It's a company that their business
model is built on you trading their capital. And so now we have the
cash Flow patient Club to where our members use prop trading money. So UM,
you've become a member of a cash flow club and you get access to
say like a two hundred thousand dollars trading account. That's that the prop term
PROP firm gives you UM, and you have the pass and evaluation. So
i've you know, we help you with through that process and what you what
you like pass evaluation. Now you're in the passive recurring cash flow phase,
and so what we do is we use those accounts to build cash flow for
our members without them having to do the work on their own um as a
member of our club. And so it's just an ultimate passive cash flow thing.
And it's it's the ultimate actually asymmetrical bet because they're leveraging our expertise or
expertise as a trader, they're leveraging the prop firms capital, and all they're
doing is committing their membership for us to do it on their behalf. And
so that looks like you know, you know, maybe at the beginning five
six thousand a month and then you know, in eighteen to twenty four months,
through the ability to scale that account value, they take us up to
two point five million and tradeable dollars that they'll give us, so every time
we click a ten percent milestone, they'll double the account. And in about
eighteen twenty four months, our goal is for our members to earn about fifty
to sixty K a month and pass up for curring cash flow without doing the
work themselves. A matter of fact, my tagline is I work with business
owners helping them build that cash flow without adding employees, overhead or more of
what I call the BS associated with a bid in business. And so the
answer, the short answer to your question is no, they don't have to
do it on their own. We've created a system that actually minimizes their risks
to the point of not even have to put their own capital in the market.
It has been very successful over the last four months since we literally start
this program at the beginning of the year in February, we've added fifteen million
dollars in prop trading firm capital that we're trading to build cash for for our
members. And so it's a great way for a lot of business owners.
We have real estate investors, you know, people who come in groups and
and maybe you know, with the real estate market being the way that has
been, uh, they've come out of projects and they've got you know,
capital on the sideline, and you know, people want to always put that
capital. And so what I've shared with them and show them is that now
they can park, you know, become a member, add the cash flow
creation system on to what they're doing, and now upport they can still be
earning cash flow and still have them money liquid because they're not investing their own
dollars. And now you can be earning maybe five or six random month while
you're waiting on that deal to come along. And so it's a way to
kind of buffer things, increase your cash flow and keep your powder dry without
help feel feel compelled to go and take a risk that you maybe would wouldn't
take on other circumstances. So it's really about your creativity, man, Really,
how great of you get and the currency markets just because it's a you
know, twenty four hour a day, five and a half day a week
vehicle because of international it really just gives you a lot of opportunities to succeed
at that on a regular basis. So how much sure you got to start
with here? Our membership is fifteen K, and that's an annual membership,
so fifteen K for the first twelve months, and our goal is to get
you about you know, six to seven grand a month started being off in
passive cash flow, so about sixty seventy grand a year off of that fifteen
k, and then then it re ups or half of that on the app
on the anniversary because we paid a lot of the upfront costs are getting started
already, so it's not very expensive. You know, when when you think
about the cost of capital these days in which you can do. So,
we tried to make the best as medical bet we can while our biden value
at the same time. So how much how much here your fees are run
on the service? Sure, So the only fee that the only actually benefits
to our company financially is our membership fee. So the fifteen K membership,
the initiation fee that takes care of all of our support and technology and everything
that we do on our side. Um, the members actually share the cash
flow that they create with the prop firm eighty twenty. So the members get
eighty percent of the cash flow, so that five or seven K is net
of net of the twenty percent, and there's no other fee. Um,
they've been not paying any monthly fees. There's no technology fees or anything like
that. They're not liable for the capital because it's an agreement at a contractional
agreement that the firm. You know what how this works and how it keeps
people going is that a firm is not allowing members to actually risk the whole
two hundred thousand dollars that they give them. They have really tight parameters and
that's why having a professional there helps them keep it within those guidelines. They
only allow you really to risk maybe three to six percent of the account.
So if they're only putting out six to twelve k in exchange for a twenty
percent share of the cash flow that we create, and so if we fall
outside those parameters, we reset, you know, they reset us at two
hundred K. And so that's really the downside of risk. Let's say we
get it to two point five million dollars and we're generating safety to seventy k
a month and passive can flow, and then we violate the hard risk rules,
so we blow the blow the risk by you know, more than three
percent in a day on what is six percent total, they'll start us back
from two point five million dollars two hundred thousand, and so that the opportunity
costs of time of earning only six thousand versus seeks to seventy thousand. That's
the opportunity cost of time and then also performance risk. And my worst year
performance since twenty one when I started the cash flow program at all was twenty
one forty percent in the middle of twenty twenty one, all right in the
middle of COVID. So um, so if you can deal with about a
one to two percent a month compounded return getting you about forty grand off of
a fifteen king membership, then it makes sense there's no other costs associated with
it for our merrors. Interesting. Interesting, So why was the return only
twenty one percent in uh twenty twenty one? Well, I love that,
dad, Thanks thanks for pointing out the one be that I had in all
the a's that I had. Okay, thank you dad. Uh So within
so the reason that thing so so that was that was the account. So
we have two verticals. So obviously we started in a vertical where people putting
their own principle up and we grow it and so that's a little bit more
aggressive. And our goal is about seven to seven and a half percent a
month because we're trying to deal with the cashflo every year. Um. And
so the first year we ran it, what I wanted to do is actually
just prove out that the model worked. And I wanted to be very conservative
with that because I didn't want to scare anybody or you know, create any
hictups to where you know, people would be afraid. And so, uh,
you know, when you generate a twenty two percent return when the market's
going down, um, a lot of people become believes in then when you
ratchet it up, they believe in that as well, So it was really
more strategic for my standpoint. Interesting. Interesting, So are you agnostic as
far as where the market setting, where the dollar is setting? Uh?
And your great question answer, I absolutely am. I truly looked only at
price. Price can in structure, price action and structure. And actually I
only trade so the dollars in between, because the dollar denominates so much,
right, But I only trade the British pound versus the Japanese end, So
I don't even really concern myself on a daily basis about the dollar. I
do because it's I mean, it's it's just built into the currency. But
I trade one pair only. And the reason is, you know, I
trade the pounden is first of all, that has enough of a daily trading
range that will allow me if if the market is suited from a structural standpoint,
it will allow me an opportunity on an almost daily basis. But then
also the GJ is one of the toughest pairs to trade, and so I
like that because it keeps a lot of people out of it. And then
second thirdly, um, the GJ is actually very is very predictable that it
has a it has a way of moving that the kind of really repeats itself.
And I found that philosophically was easier. You know, at one point
I would trade twenty to twenty five pair. You know, I'm trading the
down thirty. I'm trying trading you know, all these different currencies. And
what I realized it's kind of like relationships, right. So you can date
a lot of people and you can get to know a little bit about each
of them. But once I really settled in on one pair, it's like
almost kind of get into a committed relationship. And then you also you start
to understand the characteristics and the nuances of that pair to a point where you
see things coming before they even happen because you focus your energy on that.
So GJA gives me what I need is as far as building in cash flow,
and that's all we've got to do. So I'm really agnosticed. What
the dollar does. I have to look up sometimes and look because people are
asking about it, and I'm like, I really don't even know a care.
You know, as long as we're still in business as a country,
I don't really care all right, and I'll buy that. I'll buy it.
So it's strictly technicals. You got an algorithm like you're I assume some
kind of bought involved here, or you're just pulling these trades out of your
you know yourself, out of my chance. Well, it's true. Actually
I'm I'm I'm a discretionary trader and I don't use any bots. One of
the challenges with bots, in my opinion, what I've seen is that people
who program them, they programmed them on a very suspicious set of presumptions,
and so because those presumptions are faulty, a lot of times bots will they
perform for a short period of time and then they stop performing because they're taking
assumptions that aren't right. Because that's build back on the premise that most people
don't understand the true structure and nature of the market in the prie cycle.
So I've only met one individuals, an Indian gentleman out of New York.
We're working on a platform at Dubai that I was invited to be a part
of as an FX trader, and we were having conversations about automating the trading,
and he was the only person who gave me an answer that I felt
satisfied with because he knew he understood market structure in the wholesale nature of it.
And so to answer your question, I think the human element is very
important in trading, and as long as your discipline, which is why I've
been doing this for fifteen plus years. I was only as your discipline,
you can make plenty of money doing it discretionarily. All right. People want
to find out more about you, connect with you on the web. But
where is the best place to go? Here? Best place though is um
FM trades dot com FM like a radio station, trades with as dot com
On Instagram is the only place I probably post picks outside of LinkedIn. Instagram.
My handle is at help Made Millionaire HLP Made m Ade Millionaire. LinkedIn
is I think Kevin L. Jefferson and then Facebook is the same. But
you just go to anfimtrace dot com. You can go to mysels from there.
All right, Well, there's a link to it in the show notes
this interview on Financial Survival Network dot com. Make sure you go sign up
for a free newsletter when you're there. If you've got a question for Kevin
myself, shoot us an email k l at Kerry lutz dot com. Interesting
concept, Kevin. We'll definitely have you back on more to expound a bond
it further, learn more about it, and we'll talk to you soon.
Right. Thank you, Kerry, great to be with you. Enjoy the
day. Thanks for listening to carry Letts's Financial Survival Network, your solution to
today's trying times. For the latest, go to Financial Survival Network dot com.
Financial Survival Network now more than ever,