1
00:00:00,160 --> 00:00:02,560
Speaker 1: Uh, yeah, I mean I started with it and as

2
00:00:02,600 --> 00:00:06,280
I was working extraction, I was on good pay when

3
00:00:06,280 --> 00:00:09,000
I realized very quickly that the return on capital is

4
00:00:09,080 --> 00:00:11,439
much more attractic and the return on labor.

5
00:00:11,720 --> 00:00:15,560
Speaker 2: You are listening to Carrie Lutz's Financial Survival Network, where

6
00:00:15,560 --> 00:00:19,000
you get valuable information you just can't find anywhere else

7
00:00:19,559 --> 00:00:23,120
to thrive in today's trying times. You need the Financial

8
00:00:23,239 --> 00:00:28,320
Survival Network now more than ever. Go to Financial Survivalnetwork

9
00:00:28,359 --> 00:00:32,079
dot com and get your free newsletter and gift. Financial

10
00:00:32,200 --> 00:00:35,560
Survival Network now more than.

11
00:00:35,399 --> 00:00:43,359
Speaker 3: Ever, and welcome. You are listening to the Financial Survival Network.

12
00:00:43,359 --> 00:00:47,359
I'm your host, Carrie Lutz and got a great story

13
00:00:47,399 --> 00:00:50,240
for you. Pretty amazing. You're not going to believe it.

14
00:00:50,439 --> 00:00:54,320
Next guest, Mark Anderson, you went from construction worker to

15
00:00:54,439 --> 00:00:59,880
derivatives trader in three easy lessons. I guess you probably

16
00:01:00,479 --> 00:01:04,560
probably took one of those courses that everybody's advertising how

17
00:01:04,599 --> 00:01:06,959
to make money and options, and the here you are

18
00:01:07,040 --> 00:01:10,200
now running a Tedge fund. I take it that your

19
00:01:10,400 --> 00:01:15,239
construction work is probably a means to an end. Tough. Yeah.

20
00:01:15,319 --> 00:01:17,519
Speaker 1: I mean I started with it, and as I was

21
00:01:17,560 --> 00:01:21,480
working construction, I was obviously good pay, but I realized

22
00:01:21,560 --> 00:01:24,280
very quickly that the return on capital is much more

23
00:01:24,480 --> 00:01:28,719
attractic than the return on labor from tax perspectives, from

24
00:01:28,879 --> 00:01:33,439
i'm professional, from scalability. So I just started taking more

25
00:01:33,439 --> 00:01:36,120
of an interest in investing in financial stuff.

26
00:01:36,159 --> 00:01:38,079
Speaker 3: I did a lot of real estate, didn't like that.

27
00:01:39,000 --> 00:01:41,959
Speaker 1: And then I realized that most everything out there was

28
00:01:42,560 --> 00:01:45,359
basically just kind of high up in salesman that just

29
00:01:45,439 --> 00:01:47,920
jumped from the things I wanted to create something that

30
00:01:48,000 --> 00:01:49,560
was real and actual.

31
00:01:50,439 --> 00:01:56,280
Speaker 3: Uhha, Okay, So you know, it's kind of a fascinating

32
00:01:56,879 --> 00:02:01,719
transformation here. You went from I'm a blue collar, it's

33
00:02:01,760 --> 00:02:05,799
a white collar. You must have had some interest in

34
00:02:05,879 --> 00:02:09,120
this in the How did you get into it? I

35
00:02:09,120 --> 00:02:10,360
guess is really the question.

36
00:02:10,800 --> 00:02:11,000
Speaker 1: Yeah.

37
00:02:11,039 --> 00:02:12,800
Speaker 3: I mean I was young. I had a lot of

38
00:02:12,919 --> 00:02:14,360
energy and a lot of time.

39
00:02:14,919 --> 00:02:17,919
Speaker 1: Uh. And then I'd always been familiar with what options

40
00:02:17,919 --> 00:02:20,840
are my dad, I'd like traded options. I was kind

41
00:02:20,879 --> 00:02:23,159
of supposed to a young age. And then I stomped

42
00:02:23,199 --> 00:02:26,680
upon these things called zero das expiration options, which are

43
00:02:26,719 --> 00:02:29,159
options that are put on when the market op it's

44
00:02:29,159 --> 00:02:31,080
at nine to thirty, and an expire when the market

45
00:02:31,240 --> 00:02:34,400
it's at four pm. And I really thought there was

46
00:02:34,800 --> 00:02:38,319
stuffing there with not carrying risk overnight and being able

47
00:02:38,319 --> 00:02:42,960
to always quantify your loss with liquidity and order throughout

48
00:02:43,000 --> 00:02:43,280
the day.

49
00:02:43,560 --> 00:02:45,319
Speaker 3: So I got really obsessed with it, and then I

50
00:02:45,400 --> 00:02:45,840
took off.

51
00:02:45,960 --> 00:02:48,319
Speaker 1: And the main thing is just because someone good to

52
00:02:48,360 --> 00:02:52,319
Harvard or does whatever, it doesn't mean they're more well.

53
00:02:52,120 --> 00:02:55,439
Speaker 3: Suited to do what you do. It's basically just a mind.

54
00:02:55,479 --> 00:02:59,879
But well, let me I think it's a chable, all right, Okay,

55
00:03:00,080 --> 00:03:04,280
so we've got to get into this here, because doesn't

56
00:03:03,759 --> 00:03:06,879
don't like ninety percent and ninety five percent of all

57
00:03:06,960 --> 00:03:10,400
people who trade in options lose money. Yeah, I believe

58
00:03:10,400 --> 00:03:11,479
it's ninety nine percent.

59
00:03:11,960 --> 00:03:15,120
Speaker 1: I seply like this question because the outage American is

60
00:03:15,199 --> 00:03:17,520
thirty five pounds of a weigh ten thousand dollars in

61
00:03:17,639 --> 00:03:21,080
debt and as a less close friend, but we don't

62
00:03:21,159 --> 00:03:23,280
go around and go up to someone with the six

63
00:03:23,319 --> 00:03:25,759
pack and say, don't you know ninety nine percent of

64
00:03:25,759 --> 00:03:28,039
people are every way it's possible you have a six pack.

65
00:03:28,039 --> 00:03:30,159
How can you do this? Don't you know that market

66
00:03:30,199 --> 00:03:32,319
sufficient and you can't have a six pack? But we

67
00:03:32,360 --> 00:03:34,360
seem to like to do that to people in the

68
00:03:34,360 --> 00:03:37,479
financial space or the other thing is ninety percent of

69
00:03:37,520 --> 00:03:41,360
businesses fail within the first five years. But we also

70
00:03:41,479 --> 00:03:45,120
don't tell people how's it possible you're running probable business.

71
00:03:45,479 --> 00:03:47,520
It's just it's a fiffent, you know.

72
00:03:47,960 --> 00:03:54,159
Speaker 3: Yeah, Okay, I'll buy that. Yeah, But let's face it,

73
00:03:54,159 --> 00:03:57,879
it's one thing like ninety nine percent. That's even better

74
00:03:57,919 --> 00:04:02,759
than the government's conviction rate for how is this done?

75
00:04:02,800 --> 00:04:03,039
Speaker 1: Here?

76
00:04:03,159 --> 00:04:05,280
Speaker 3: Like you're defying the odds completely.

77
00:04:06,120 --> 00:04:09,719
Speaker 1: People psychologically can't get out of their own way and

78
00:04:09,879 --> 00:04:12,960
don't put in the time and dedication to achieve what

79
00:04:13,000 --> 00:04:17,720
they're trying to do. So the way like I like

80
00:04:17,759 --> 00:04:20,360
think of it. Actually saw this YouTube video other day

81
00:04:20,399 --> 00:04:23,639
where it's the guy that invented the bulletproof vest got

82
00:04:23,720 --> 00:04:27,639
shot and the chest one hundred times and that's what

83
00:04:27,680 --> 00:04:30,480
he would do. Basically all do stuff, And it's like,

84
00:04:30,879 --> 00:04:33,720
those are the people that succeed, that have enough condition

85
00:04:33,839 --> 00:04:36,759
and their idea that they're willing to go first, put

86
00:04:36,759 --> 00:04:38,879
it in front of it, and they're willing to put

87
00:04:38,879 --> 00:04:41,439
their money where their mouth is. They directly put their

88
00:04:41,519 --> 00:04:43,800
value that they offer in front of their clients. And

89
00:04:43,839 --> 00:04:47,079
then also the reason ninety nine percent of people lose

90
00:04:47,199 --> 00:04:51,879
is because trailing trading is indefinitely scalable, So I could

91
00:04:51,920 --> 00:04:54,879
do one hundred million dollars in seat of ten million dollars.

92
00:04:54,959 --> 00:04:57,079
It would require no more work by good shad peak.

93
00:04:57,319 --> 00:05:00,560
So it's just inherently a winner take all game, which

94
00:05:00,759 --> 00:05:04,800
obviously eats up. Arrested more of a pure form of capitalism, right,

95
00:05:04,839 --> 00:05:07,920
I would say real estate is more of a single

96
00:05:07,920 --> 00:05:11,199
family real estate or Reynolds is a how to not

97
00:05:11,319 --> 00:05:14,079
lose game rather than how to win game. You don't

98
00:05:14,120 --> 00:05:18,920
really see people buying a government financed loan at a

99
00:05:18,959 --> 00:05:20,959
single family home get rich, you know.

100
00:05:22,000 --> 00:05:25,920
Speaker 3: Okay, So, but is this something you could do at

101
00:05:25,959 --> 00:05:29,360
home or is this something that you know there should

102
00:05:29,360 --> 00:05:32,439
be a warning don't try this at home. Only professionals

103
00:05:33,079 --> 00:05:37,360
are engaged in this kind of activity, you know. That's

104
00:05:37,399 --> 00:05:39,120
my means anyone could do it.

105
00:05:39,240 --> 00:05:43,720
Speaker 1: All you would need is thirty grand to not have

106
00:05:43,920 --> 00:05:45,920
pattern day trading rules, which is just a rule by

107
00:05:45,959 --> 00:05:48,240
the government that says you can't treat options on the

108
00:05:48,279 --> 00:05:49,879
same day one or twice a week if you have

109
00:05:50,000 --> 00:05:52,959
a thirty grand account. So there's really no buried injury

110
00:05:53,120 --> 00:05:54,959
of anyone that could do it. It would just be

111
00:05:55,120 --> 00:05:57,920
already willing to put a buy and to do something

112
00:05:58,800 --> 00:06:00,319
and learn it. Like what I like to say is

113
00:06:00,360 --> 00:06:03,680
I'm giving away the secret selling implemortation. So I release

114
00:06:03,759 --> 00:06:06,079
everything on a YouTube channel and you can go ahead

115
00:06:06,120 --> 00:06:08,600
and look at it and feel my strategy and do

116
00:06:08,639 --> 00:06:11,439
whatever you can. The main underlying thing though, is since

117
00:06:11,759 --> 00:06:13,839
you did read all of it, you didn't put the word.

118
00:06:14,279 --> 00:06:16,439
If that goes up and down a little bit, you're

119
00:06:16,480 --> 00:06:18,120
probably going to struggle with your conviction.

120
00:06:18,240 --> 00:06:20,240
Speaker 3: It's all over room and actually do it so right.

121
00:06:20,319 --> 00:06:23,120
That's what's going to catch you for proceeding. So what's

122
00:06:23,120 --> 00:06:26,000
the worst hit you've taken in your training? Here?

123
00:06:26,639 --> 00:06:29,399
Speaker 1: The worst hit I've taken is an eight percent drawdown,

124
00:06:29,759 --> 00:06:32,360
So from my all time account high value, I lost

125
00:06:32,399 --> 00:06:34,680
eight percent of my account or of course about two weeks.

126
00:06:34,720 --> 00:06:36,959
But to make it sount the cooler I've lost, it

127
00:06:37,160 --> 00:06:39,839
was about a million dollars. So that's a big number,

128
00:06:40,000 --> 00:06:42,560
but not the big percentage. But the percentage of all

129
00:06:42,720 --> 00:06:45,959
really matters, so about half as much as the average

130
00:06:46,000 --> 00:06:49,759
down here in the index. For example, this year, the

131
00:06:49,800 --> 00:06:53,879
biggest drawdown from a high and the Nasdaq was eighteen percent.

132
00:06:54,160 --> 00:06:57,319
Speaker 3: So what's like when it happens here? When you hit

133
00:06:57,639 --> 00:07:02,160
pack these losses, what is generally the cause of it.

134
00:07:02,160 --> 00:07:05,319
It's usually just a big reversal.

135
00:07:05,720 --> 00:07:08,879
Speaker 1: So let's say during the day the market goes up

136
00:07:08,920 --> 00:07:12,720
all day, my computers selling puts that's boot on it,

137
00:07:12,800 --> 00:07:15,319
and at that of the day it just drops like

138
00:07:15,600 --> 00:07:19,680
a percent or two percent for no reason. But again,

139
00:07:20,079 --> 00:07:24,879
all these are statistically managed in so roughly two percent

140
00:07:24,920 --> 00:07:26,959
of the time that's going to happen. So that happens

141
00:07:26,959 --> 00:07:28,680
about one supporter. Okay, so.

142
00:07:30,720 --> 00:07:34,519
Speaker 3: What if somebody wants to exercise the option, right, these

143
00:07:34,560 --> 00:07:36,680
options get settled in cash, right.

144
00:07:36,800 --> 00:07:39,000
Speaker 1: Yeah, s and P five hundred options, which is at

145
00:07:39,040 --> 00:07:42,199
the act are all European options, which means they're cash sittled,

146
00:07:42,279 --> 00:07:44,839
so no one can assign it to you, right, so there's.

147
00:07:44,639 --> 00:07:49,279
Speaker 3: No delivery per se other than paying the loss right, correct,

148
00:07:49,680 --> 00:07:54,360
got it? Got it, That's what I thought. That's fascinating. So, well,

149
00:07:54,399 --> 00:07:56,639
you can't lose a lot, you can't really make a

150
00:07:56,680 --> 00:08:00,600
lot either, So essentially, yes, what the act that these

151
00:08:00,600 --> 00:08:01,680
are put on daily.

152
00:08:01,839 --> 00:08:04,519
Speaker 1: The compounding is where all of the edge comes from.

153
00:08:04,639 --> 00:08:06,519
So the right book like to give to people is

154
00:08:06,560 --> 00:08:09,439
that if you're one hundred grand in real estate debt

155
00:08:09,879 --> 00:08:12,160
and you have a ten percent rate you know, to

156
00:08:12,279 --> 00:08:14,000
ten at the end of the year. But if you're

157
00:08:14,000 --> 00:08:15,800
one hundred grand in a credit card debt at a

158
00:08:15,839 --> 00:08:19,240
ten percent rate, that is compounded daily, so you end

159
00:08:19,319 --> 00:08:22,639
up paying about twice the principle over a year period

160
00:08:22,800 --> 00:08:26,120
when it's compounded daily versut one. It's compounded yearly. So

161
00:08:26,240 --> 00:08:29,240
eventually this is where the real edge is? Is that

162
00:08:29,759 --> 00:08:32,759
mathematically not even just see if I could do the

163
00:08:32,840 --> 00:08:35,759
same return as the index every day, I would get

164
00:08:35,799 --> 00:08:37,360
double the return at the end of the year because

165
00:08:37,399 --> 00:08:38,320
it's concounted daily.

166
00:08:38,440 --> 00:08:42,039
Speaker 3: All right, And do you keep investing more money in?

167
00:08:42,679 --> 00:08:45,639
How does that work? Or do you just how do

168
00:08:45,639 --> 00:08:46,679
you do that? Exactly?

169
00:08:47,279 --> 00:08:50,080
Speaker 1: Yeah, So basically it's just all based on math. So

170
00:08:50,360 --> 00:08:52,879
I fill about one percent of my account value and

171
00:08:52,919 --> 00:08:56,000
credit per day. So if I have a million dollar account,

172
00:08:56,000 --> 00:08:58,120
I said about ten thousand in bree me a debt

173
00:08:58,399 --> 00:09:00,960
by one point one million dollar accoun I would sell weapons.

174
00:09:01,360 --> 00:09:04,759
So basically on taking the same percentage risk each and

175
00:09:04,840 --> 00:09:07,919
every day. So mathematically, on a percentage basis, it makes

176
00:09:07,919 --> 00:09:10,480
no difference whether my casts larger or smaller.

177
00:09:10,759 --> 00:09:16,679
Speaker 3: It's just purely really interesting, really interesting. So So how

178
00:09:16,679 --> 00:09:18,399
do you get how do you get involved in this,

179
00:09:18,559 --> 00:09:21,879
so can we invest in your fund? Is that the doable?

180
00:09:22,039 --> 00:09:24,000
And what kind of returns have you gotten in the

181
00:09:24,039 --> 00:09:26,360
fund over the path since out?

182
00:09:27,080 --> 00:09:29,159
Speaker 1: If you're interested in that, you could look at my

183
00:09:29,279 --> 00:09:32,159
YouTube channel The roaday Mark. I basically break everything out,

184
00:09:32,720 --> 00:09:34,960
get a link to some back testing software if you'd

185
00:09:35,000 --> 00:09:37,200
like to pull up invite it for itself. And it

186
00:09:37,200 --> 00:09:39,039
sounds that I'd interested to you, I'd be more than

187
00:09:39,080 --> 00:09:42,440
happy to seek with you. But yeah, you actually invested

188
00:09:42,440 --> 00:09:45,960
in my fund based find me on LinkedIn website h

189
00:09:46,039 --> 00:09:49,919
Capital Management dot com and then you just got to

190
00:09:49,960 --> 00:09:53,360
be aligned with basically my clients and everyone after one

191
00:09:53,440 --> 00:09:55,120
hundred percent with WIT so you can take your money

192
00:09:55,159 --> 00:09:58,200
out whatever you want. And I'm currently starting a forty

193
00:09:58,240 --> 00:10:02,000
percent yearly return percent quarterly return, so you can basically

194
00:10:02,000 --> 00:10:03,799
get out on bull of shit and you could see

195
00:10:04,039 --> 00:10:07,519
the returns on a day to day basis at target.

196
00:10:07,960 --> 00:10:09,639
Speaker 3: That's regardless of what happens in market.

197
00:10:09,799 --> 00:10:14,320
Speaker 1: The market's down up sideways, down twenty percent percent quarterly

198
00:10:14,399 --> 00:10:16,639
return to the four year seniorly return, so.

199
00:10:16,600 --> 00:10:19,360
Speaker 3: You don't really care what the market does right now.

200
00:10:19,720 --> 00:10:23,559
Speaker 1: In statistical terms, we're pointing due to percent correlated to

201
00:10:23,600 --> 00:10:26,200
the market, so basically random.

202
00:10:26,080 --> 00:10:29,799
Speaker 3: Got it. Yeah, so it's it's just really irrelevant. Yeah,

203
00:10:30,240 --> 00:10:34,639
got it? All right, fascinating and hey, appreciate you coming on.

204
00:10:34,919 --> 00:10:37,440
Can you tell us where we can find you, give

205
00:10:37,519 --> 00:10:39,919
us links, website, whatever.

206
00:10:40,200 --> 00:10:43,399
Speaker 1: Yeah, you can find me at Mbhcapital Management dot com

207
00:10:43,519 --> 00:10:46,240
or look me up on LinkedIn mbH Capital Management see

208
00:10:46,279 --> 00:10:49,039
Mark Anderson under there also about a YouTube channel under

209
00:10:49,240 --> 00:10:51,559
euro Day Mark based the world host kind of my

210
00:10:51,559 --> 00:10:55,200
pop profits being one doing in general relation to creating

211
00:10:55,240 --> 00:10:56,960
to just kind of educate people and get people a

212
00:10:56,960 --> 00:10:57,960
better perspective on it.

213
00:10:58,159 --> 00:11:01,519
Speaker 3: All right, Hey, well I like it. Got any questions

214
00:11:01,519 --> 00:11:04,559
from Mark myself should be an email linked to a

215
00:11:04,639 --> 00:11:07,480
site be in the show notes This interview on Financial

216
00:11:07,519 --> 00:11:11,120
Survival Network dot com. While you're there, please sign up

217
00:11:11,159 --> 00:11:14,080
for your free newsletter. Hey definitely want to have you

218
00:11:14,080 --> 00:11:17,200
on again and go more in depth into this and

219
00:11:17,679 --> 00:11:22,759
really get some like real life examples and what else

220
00:11:22,799 --> 00:11:25,360
can we say? Well, that's about it. Appreciate you coming on.

221
00:11:25,480 --> 00:11:27,360
We'll talk to you again soon. Appreciate it.

222
00:11:27,559 --> 00:11:31,320
Speaker 2: Thanks for listening to carry Lets this Financial Survival Network

223
00:11:31,519 --> 00:11:35,440
your solution to today's trying times. For the latest, go

224
00:11:35,519 --> 00:11:41,440
to financial Survivalnetwork dot com Financial Survival Network now more

225
00:11:41,480 --> 00:11:42,039
than ever,