Speaker 1: Uh, yeah, I mean I started with it and as
I was working extraction, I was on good pay when
I realized very quickly that the return on capital is
much more attractic and the return on labor.
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Speaker 3: Ever, and welcome. You are listening to the Financial Survival Network.
I'm your host, Carrie Lutz and got a great story
for you. Pretty amazing. You're not going to believe it.
Next guest, Mark Anderson, you went from construction worker to
derivatives trader in three easy lessons. I guess you probably
probably took one of those courses that everybody's advertising how
to make money and options, and the here you are
now running a Tedge fund. I take it that your
construction work is probably a means to an end. Tough. Yeah.
Speaker 1: I mean I started with it, and as I was
working construction, I was obviously good pay, but I realized
very quickly that the return on capital is much more
attractic than the return on labor from tax perspectives, from
i'm professional, from scalability. So I just started taking more
of an interest in investing in financial stuff.
Speaker 3: I did a lot of real estate, didn't like that.
Speaker 1: And then I realized that most everything out there was
basically just kind of high up in salesman that just
jumped from the things I wanted to create something that
was real and actual.
Speaker 3: Uhha, Okay, So you know, it's kind of a fascinating
transformation here. You went from I'm a blue collar, it's
a white collar. You must have had some interest in
this in the How did you get into it? I
guess is really the question.
Speaker 1: Yeah.
Speaker 3: I mean I was young. I had a lot of
energy and a lot of time.
Speaker 1: Uh. And then I'd always been familiar with what options
are my dad, I'd like traded options. I was kind
of supposed to a young age. And then I stomped
upon these things called zero das expiration options, which are
options that are put on when the market op it's
at nine to thirty, and an expire when the market
it's at four pm. And I really thought there was
stuffing there with not carrying risk overnight and being able
to always quantify your loss with liquidity and order throughout
the day.
Speaker 3: So I got really obsessed with it, and then I
took off.
Speaker 1: And the main thing is just because someone good to
Harvard or does whatever, it doesn't mean they're more well.
Speaker 3: Suited to do what you do. It's basically just a mind.
But well, let me I think it's a chable, all right, Okay,
so we've got to get into this here, because doesn't
don't like ninety percent and ninety five percent of all
people who trade in options lose money. Yeah, I believe
it's ninety nine percent.
Speaker 1: I seply like this question because the outage American is
thirty five pounds of a weigh ten thousand dollars in
debt and as a less close friend, but we don't
go around and go up to someone with the six
pack and say, don't you know ninety nine percent of
people are every way it's possible you have a six pack.
How can you do this? Don't you know that market
sufficient and you can't have a six pack? But we
seem to like to do that to people in the
financial space or the other thing is ninety percent of
businesses fail within the first five years. But we also
don't tell people how's it possible you're running probable business.
It's just it's a fiffent, you know.
Speaker 3: Yeah, Okay, I'll buy that. Yeah, But let's face it,
it's one thing like ninety nine percent. That's even better
than the government's conviction rate for how is this done?
Speaker 1: Here?
Speaker 3: Like you're defying the odds completely.
Speaker 1: People psychologically can't get out of their own way and
don't put in the time and dedication to achieve what
they're trying to do. So the way like I like
think of it. Actually saw this YouTube video other day
where it's the guy that invented the bulletproof vest got
shot and the chest one hundred times and that's what
he would do. Basically all do stuff, And it's like,
those are the people that succeed, that have enough condition
and their idea that they're willing to go first, put
it in front of it, and they're willing to put
their money where their mouth is. They directly put their
value that they offer in front of their clients. And
then also the reason ninety nine percent of people lose
is because trailing trading is indefinitely scalable, So I could
do one hundred million dollars in seat of ten million dollars.
It would require no more work by good shad peak.
So it's just inherently a winner take all game, which
obviously eats up. Arrested more of a pure form of capitalism, right,
I would say real estate is more of a single
family real estate or Reynolds is a how to not
lose game rather than how to win game. You don't
really see people buying a government financed loan at a
single family home get rich, you know.
Speaker 3: Okay, So, but is this something you could do at
home or is this something that you know there should
be a warning don't try this at home. Only professionals
are engaged in this kind of activity, you know. That's
my means anyone could do it.
Speaker 1: All you would need is thirty grand to not have
pattern day trading rules, which is just a rule by
the government that says you can't treat options on the
same day one or twice a week if you have
a thirty grand account. So there's really no buried injury
of anyone that could do it. It would just be
already willing to put a buy and to do something
and learn it. Like what I like to say is
I'm giving away the secret selling implemortation. So I release
everything on a YouTube channel and you can go ahead
and look at it and feel my strategy and do
whatever you can. The main underlying thing though, is since
you did read all of it, you didn't put the word.
If that goes up and down a little bit, you're
probably going to struggle with your conviction.
Speaker 3: It's all over room and actually do it so right.
That's what's going to catch you for proceeding. So what's
the worst hit you've taken in your training? Here?
Speaker 1: The worst hit I've taken is an eight percent drawdown,
So from my all time account high value, I lost
eight percent of my account or of course about two weeks.
But to make it sount the cooler I've lost, it
was about a million dollars. So that's a big number,
but not the big percentage. But the percentage of all
really matters, so about half as much as the average
down here in the index. For example, this year, the
biggest drawdown from a high and the Nasdaq was eighteen percent.
Speaker 3: So what's like when it happens here? When you hit
pack these losses, what is generally the cause of it.
It's usually just a big reversal.
Speaker 1: So let's say during the day the market goes up
all day, my computers selling puts that's boot on it,
and at that of the day it just drops like
a percent or two percent for no reason. But again,
all these are statistically managed in so roughly two percent
of the time that's going to happen. So that happens
about one supporter. Okay, so.
Speaker 3: What if somebody wants to exercise the option, right, these
options get settled in cash, right.
Speaker 1: Yeah, s and P five hundred options, which is at
the act are all European options, which means they're cash sittled,
so no one can assign it to you, right, so there's.
Speaker 3: No delivery per se other than paying the loss right, correct,
got it? Got it, That's what I thought. That's fascinating. So, well,
you can't lose a lot, you can't really make a
lot either, So essentially, yes, what the act that these
are put on daily.
Speaker 1: The compounding is where all of the edge comes from.
So the right book like to give to people is
that if you're one hundred grand in real estate debt
and you have a ten percent rate you know, to
ten at the end of the year. But if you're
one hundred grand in a credit card debt at a
ten percent rate, that is compounded daily, so you end
up paying about twice the principle over a year period
when it's compounded daily versut one. It's compounded yearly. So
eventually this is where the real edge is? Is that
mathematically not even just see if I could do the
same return as the index every day, I would get
double the return at the end of the year because
it's concounted daily.
Speaker 3: All right, And do you keep investing more money in?
How does that work? Or do you just how do
you do that? Exactly?
Speaker 1: Yeah, So basically it's just all based on math. So
I fill about one percent of my account value and
credit per day. So if I have a million dollar account,
I said about ten thousand in bree me a debt
by one point one million dollar accoun I would sell weapons.
So basically on taking the same percentage risk each and
every day. So mathematically, on a percentage basis, it makes
no difference whether my casts larger or smaller.
Speaker 3: It's just purely really interesting, really interesting. So So how
do you get how do you get involved in this,
so can we invest in your fund? Is that the doable?
And what kind of returns have you gotten in the
fund over the path since out?
Speaker 1: If you're interested in that, you could look at my
YouTube channel The roaday Mark. I basically break everything out,
get a link to some back testing software if you'd
like to pull up invite it for itself. And it
sounds that I'd interested to you, I'd be more than
happy to seek with you. But yeah, you actually invested
in my fund based find me on LinkedIn website h
Capital Management dot com and then you just got to
be aligned with basically my clients and everyone after one
hundred percent with WIT so you can take your money
out whatever you want. And I'm currently starting a forty
percent yearly return percent quarterly return, so you can basically
get out on bull of shit and you could see
the returns on a day to day basis at target.
Speaker 3: That's regardless of what happens in market.
Speaker 1: The market's down up sideways, down twenty percent percent quarterly
return to the four year seniorly return, so.
Speaker 3: You don't really care what the market does right now.
Speaker 1: In statistical terms, we're pointing due to percent correlated to
the market, so basically random.
Speaker 3: Got it. Yeah, so it's it's just really irrelevant. Yeah,
got it? All right, fascinating and hey, appreciate you coming on.
Can you tell us where we can find you, give
us links, website, whatever.
Speaker 1: Yeah, you can find me at Mbhcapital Management dot com
or look me up on LinkedIn mbH Capital Management see
Mark Anderson under there also about a YouTube channel under
euro Day Mark based the world host kind of my
pop profits being one doing in general relation to creating
to just kind of educate people and get people a
better perspective on it.
Speaker 3: All right, Hey, well I like it. Got any questions
from Mark myself should be an email linked to a
site be in the show notes This interview on Financial
Survival Network dot com. While you're there, please sign up
for your free newsletter. Hey definitely want to have you
on again and go more in depth into this and
really get some like real life examples and what else
can we say? Well, that's about it. Appreciate you coming on.
We'll talk to you again soon. Appreciate it.
Speaker 2: Thanks for listening to carry Lets this Financial Survival Network
your solution to today's trying times. For the latest, go
to financial Survivalnetwork dot com Financial Survival Network now more
than ever,