Becoming a Profitable Trader - Lesson 1

Summary

This video script offers valuable trading insights from eight years of experience, emphasizing the importance of understanding one's identity as a retail trader and the distinction from institutional traders. It highlights key traits of successful traders, such as patience, emotional composure, consistency, and discipline. The speaker stresses the significance of a life portfolio, balancing various life aspects to mitigate the impact of trading losses. Furthermore, it underscores the need for structured education from experienced sources and the pitfalls of misinformation, advocating for a holistic approach to trading and life planning.

Takeaways

• 🚀 The importance of understanding who you are as a trader, whether new or experienced, and recognizing the difference between retail and institutional traders.
• 📈 The majority of retail traders are not profitable and are often categorized as gamblers due to their approach to trading.
• 🧠 The significance of being patient and emotionally composed in trading, which involves more than just waiting for opportunities.
• 🤔 The misconception that experience alone leads to emotional composure; the right training and mindset are crucial.
• 🔗 The correlation between the abundance of information and the decrease in wisdom, highlighting the need for discerning quality education.
• 📚 The necessity of a structured education source for acquiring trading skills, rather than relying on unstructured or misleading information.
• 🏆 The traits of profitable traders include patience, emotional composure, consistency, and discipline, which are essential for success.
• 💼 The concept of a 'life portfolio', which involves balancing different aspects of life such as relationships, health, spirituality, and income to mitigate the impact of trading losses.
• 🎯 The need for traders to have a clear purpose and direction in life beyond just making money, to avoid getting lost once financial goals are achieved.
• 🏘️ The value of infrastructure in education, such as access to funding and investment opportunities, which can provide a pathway for traders to grow their wealth beyond trading.
• 🛣️ The emphasis on learning from experienced traders who have built wealth through multiple assets and income sources, not just from trading profits.

Q & A

What is the main focus of the video script?

The main focus of the video script is to provide trading tips and insights based on the speaker's 8 years of experience in the financial markets, emphasizing the importance of understanding the nature of being a retail trader and the traits of profitable traders.

What does the term 'retail investor' refer to in the context of trading?

In the context of trading, a 'retail investor' refers to an individual who trades their own money for their own financial gain, as opposed to someone who trades on behalf of an institution, who would be considered a professional market participant.

Why is it important for traders to understand the difference between being a retail investor and a professional trader?

It is important for traders to understand this difference because it helps them to recognize the information and advice that is relevant and beneficial to them as individual market participants, avoiding misconceptions and marketing ploys that may mislead them.

What is the correlation mentioned in the script between information and wisdom?

The correlation mentioned in the script is that as information increases, wisdom decreases. This suggests that an overload of information can lead to a lack of discernment and understanding, which can be detrimental in the trading world.

What are some of the key traits of a profitable trader according to the script?

According to the script, key traits of a profitable trader include being extremely patient, emotionally composed, consistent, and disciplined.

How does the script differentiate between patience and correctly waiting for opportunities in the market?

The script differentiates by explaining that patience is not just about waiting; it's about knowing how, when, and why to wait, and being specific about what one is waiting for, which affects decision-making in trading.

What is the misconception about emotional composition among traders that the script addresses?

The misconception addressed in the script is that emotional composition comes with time and experience, such as backtesting or accumulating losses. The script argues that this is largely incorrect and that emotional composition comes from the right training and approach.

What is a 'life portfolio' and why is it important for traders to have one?

A 'life portfolio' refers to a diversified set of investments and income sources outside of trading, such as business investments, relationships, health, spirituality, and income from various sources. It is important for traders to have one to balance potential losses in trading and to maintain a sense of fulfillment beyond just trading success.

Why is it crucial for traders to have a clear understanding of their life purpose and goals beyond trading?

It is crucial because once traders achieve financial success, they may hit a brick wall if they don't have a clear purpose or direction in life. This understanding helps prevent a sense of aimlessness and ensures that they have a structured plan for their life's journey.

What defines good education in the context of trading, as mentioned in the script?

Good education in the context of trading is defined by the script as coming from a structured source, preferably from someone with experience in the market who has achieved wealth through their skill, not just from trading profits, but from multiple appreciating assets and income sources.

What is the importance of infrastructure in the context of a trading education program?

Infrastructure is important in a trading education program because it provides a clear pathway for learning and growth, including access to funding, investment opportunities, and a support system that is designed to help traders succeed in the long term.

Outlines

00:00

📈 Understanding the Retail Trader Mindset

The video script begins by emphasizing the importance of recognizing oneself as a retail trader, distinguishing between professional and non-professional market participants. The speaker, drawing from years of experience, discusses the common pitfalls of retail traders and the fine line between trading and gambling. The speaker also warns against the misuse of terms like 'retail' to manipulate retail traders and stresses the importance of understanding one's identity as a trader to avoid being misled by misinformation in the financial markets.

05:00

🧘 Traits of a Profitable Trader

This paragraph delves into the characteristics that define a successful trader. Patience, emotional composure, consistency, and discipline are highlighted as essential traits. The speaker refutes the misconception that experience alone leads to emotional stability in trading, arguing that the right training and mindset are crucial. The paragraph also touches on the importance of aligning one's consistency and discipline with profitable behaviors, and the need for self-awareness and introspection to track and improve one's trading behaviors.

10:01

💼 The Importance of a Diversified Life Portfolio

The speaker introduces the concept of a life portfolio, explaining how a diversified investment approach can balance financial outcomes and reduce the emotional impact of trading losses. The paragraph contrasts the resilience of traders with a well-rounded life portfolio against those who have all their financial eggs in one basket. The emphasis is on the need for traders to have a structured life that includes multiple sources of income and fulfillment beyond just trading, to maintain a balanced perspective and avoid being overly affected by market fluctuations.

15:02

🚀 Charting Your Path to Profitability

The final paragraph focuses on the importance of having a clear vision and plan for one's life and trading career. It discusses the risks of achieving financial success without a purpose or understanding of what comes next. The speaker advocates for structured education from experienced sources, cautioning against the pitfalls of misinformation. The paragraph also touches on the value of infrastructure, such as access to funding and investment opportunities, as part of a comprehensive educational and trading support system.

Keywords

💡Profitable Trader

A 'Profitable Trader' is an individual who consistently makes money in the financial markets. In the video, the term is used to highlight the characteristics and behaviors of successful traders. The script emphasizes that being a profitable trader involves patience, emotional composure, and a structured approach to trading, rather than just the accumulation of experience or back-testing strategies.

💡Retail Investor

A 'Retail Investor' is someone who trades their own money for personal financial gain, as opposed to trading on behalf of an institution. The script explains that retail investors are often categorized as non-professional market participants. The term is used to contrast with 'Institutional Traders', who trade on behalf of financial institutions, and to discuss the importance of understanding one's role in the market.

💡Information Overload

The term 'Information Overload' refers to the state where an excess of information reduces a person's ability to make decisions or take constructive action. The video script mentions this concept to illustrate the paradox that while there is a wealth of information available to traders, it can lead to confusion and a lack of wisdom in decision-making, particularly for new or inexperienced traders.

💡Emotional Composure

'Emotional Composure' in the context of the video refers to the ability of a trader to remain unaffected by wins or losses in the market. The script explains that this trait is crucial for traders to make rational decisions and not be swayed by emotions, which is a misconception that comes with the idea that experience alone can make one emotionally composed.

💡Consistency and Discipline

In the video, 'Consistency and Discipline' are traits of successful traders. They are intertwined, with discipline being a prerequisite for consistency. The script uses these concepts to emphasize the importance of aligning one's behavior with profitable trading habits, rather than just being consistent and disciplined in general life activities.

💡Life Portfolio

A 'Life Portfolio' is a concept introduced in the script that refers to a diversified set of investments and interests outside of trading. It includes aspects like relationships, health, spirituality, and income. The video explains that having a balanced life portfolio can help mitigate the emotional impact of trading losses and contribute to a trader's overall well-being.

💡Structured Education

'Structured Education' in the video script refers to a systematic and organized approach to learning, particularly about trading. The speaker argues that to become a successful trader, one must seek education from credible sources that provide a clear pathway for skill development, rather than from random or unstructured information.

💡Mentorship

The term 'Mentorship' is used in the script to denote the guidance and instruction provided by an experienced individual to a less experienced one. The video emphasizes the importance of having a mentor in trading, especially one who has achieved wealth through their trading skills, as opposed to those who may only have theoretical knowledge.

💡Infrastructure

In the context of the video, 'Infrastructure' refers to the systems and resources put in place to support the growth and development of traders. The script mentions that a proper education infrastructure includes a clear pathway for learning, access to funding, and opportunities for investment, which are crucial for a trader's long-term success.

💡Prop Account

A 'Prop Account', short for proprietary account, is a trading account provided by a company to traders who demonstrate profitable trading abilities. The video script uses this term to differentiate between traders who have actual personal wealth versus those who manage large accounts but do not own the capital, highlighting the importance of true wealth creation beyond trading profits.

💡Asset Diversification

'Asset Diversification' is the practice of spreading investments across various financial instruments, industries, or other categories to reduce risk. The script touches on this concept when discussing the life portfolio of a profitable trader, emphasizing the importance of not relying solely on trading for financial success but having multiple income streams and investments.

Highlights

Importance of understanding who you are as a trader, whether new or experienced, in the context of being a retail investor.

The differentiation between retail and institutional traders in the financial markets.

The misconception that all traders from investment banks are successful, with the reality being more nuanced.

The critical role of patience in trading and how it differs from common understanding.

Emotional composure as a key trait of successful traders and the common myths around it.

The necessity of consistency and discipline in trading and how they are intertwined.

The idea that everyone is consistent and disciplined in some way, but the challenge is directing these traits towards profitable trading.

The concept of a 'life portfolio' as essential for a balanced trader's life.

The impact of a diversified life portfolio on emotional resilience in the face of trading losses.

The importance of having a clear purpose and direction in life beyond trading success.

The pitfalls of focusing solely on trading without considering the bigger picture of life goals.

The necessity of a structured education source for acquiring trading skills.

The difference between education from experienced wealth holders versus those with prop accounts.

The infrastructure of a proper education system, including access to funding and property investment opportunities.

The power of mentorship and the benefits of learning from those with diverse and substantial wealth.

The warning against the overload of information and the lack of wisdom in the trading world.

The emphasis on the importance of tracking behavior and thought patterns to align with profitable trading.

Transcripts

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waste too much energy you using too much

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all of you want to become profitable

Traders it's the reason why you're here

and you want to make money what I'm

going to mention in this video are tips

from my 8 years of experience in trading

the financial markets and also the

previous few years that I've coached

Traders some Traders getting from

absolutely nothing to then trading

multiple six figures and some even seven

figures the first things first that you

have to understand is who you are as a

Trader whether you're somebody who's

brand new and this is your first time

coming across any type of trading

content or whether you're somebody who's

been trading the markets for a multitude

of different years you will eventually

if you haven't already come across this

term retail unless you actually have a

job role with an investment Bank whether

it's City HSBC JP Morgan any kind of

investment bank and unless you work

there you're always going to be

categorized as what is known as a retail

investor or retail Trader and I'll tell

you why in a second this is very

important to understand because people

skip over this but get to the point a

retail investor is somebody who trades

their own money for their own Financial

game they don't trade on behalf of any

institution of any kind nothing like

that naturally these Traders are

referred to as nonprofessional Market

participants the professional Market

participants are the ones who

essentially trade on behalf of an

institution they're considered

professional now not every single person

who trades on behalf of financial

institutions are actually great Traders

Believe It or Not For example A friend

of mine family friend actually used to

trade for City Bank a few years back I

don't exactly know what he specialized

in terms of the trading assets ECT when

he was trading there he made it very

clear to me not everybody who trades in

an investment bank is actually a great

Trader we've always got the different

tars you've got the bottom te the mid T

the high tear Traders it doesn't mean

that if you are a retail Trader that

you're a poor Trader but it just so

happens to be as I mentioned in my

previous video that I would even say 97

let's up the start at this time 97% of

people involved in the retail investment

industry are terrible and in fact

they're not even Traders they're what is

known as a gambler now I'm not even

saying this is a joke there's a very

very fine line between a retail investor

and a gambler and I'll get into that in

later lessons but for now anyway getting

to the point retail investor this is

what you are now why is this important

to know and it's fundamentally crucial

for you to know this the reason being is

all down to one word and that word is

information information always remember

this is a correlation when information

increases wisdom decreases this is a

Time proven correlation the more

information that is available the less

wise a society become there's also proof

of this in the trading World there is so

much information but the failure rate is

only increasing and why is that is

because there there is more information

available than before and the problem

with information is someone like you who

may be brand new or maybe you've been

trading for a few years you won't know

who to listen to you won't know who's

right you want know who's wrong because

everyone's saying I'm right this

person's wrong listen to me don't listen

to them this is why you should learn off

me I'm the best blah blah blah I've got

this many payouts all this nonsense so

the reason why I talked about the term

retail is because you'll find a very

quick way to figure out whether someone

doesn't actually know what they're

talking about to their entirety is if

they use terms like retail in their

lingual so for example if I will say

don't trade this method because it is

retail or don't do this because this is

what retail Traders do that would then

in turn report that I am an

Institutional Trader wouldn't it if I

was saying to you guys don't do this

because this is what retail Traders do

or the biggest mistake that retail

Traders make is they do this and this is

why you should do this instead that

would then report that I am an

Institutional level Trader which doesn't

make sense because if you look at the

Google definition of what an

Institutional Trader is versus a retail

Trader it's a very simple Google search

that will help you understand the

difference that you'll find is a

marketing Ploy that a lot of people

online use just to grab your attention

it's a very very smart tactic because

they know with asymmetric knowledge when

they know more than you they can use

terms like that to grab you in so that's

just a very quick introduction right and

whether you're somebody who's brand new

whether you're somebody who's been

trading quite a number of years

important for you to know that before we

begin anything watch out for things like

that you are a retail Trader and you

need to know what that means and the

purpose of it is you're trading your own

money for your own financial gain of

course secondly before you begin you

need to understand what a Trader is and

how they think like how do they behave

how do they perform who is a Trader if

I'm trying to teach you to become a

world champion boxer for example exle

you need to know what a world champion

boxer is like for example custom when he

was training Mike Tyson he didn't even

let the guy step in the ring for a few

weeks all he did was literally brainwash

him on the psychology of what a world

champion boxer is like and he drilled

that into his mind because if you don't

know who you are to become how are you

going to get there in the first place if

you don't know what a profitable Trader

thinks like acts like trades like how

the hell are you going to become one

that's why you're going to find a

struggle to decipher between what

information is worth listening to and

what is not to understand that you need

to get the traits okay traits are very

very simple first one they're extremely

patient extremely patient

now being patient doesn't just mean you

wait for things this is a big

misconception a very simple example that

you've all experienced when you're

hungry every single time you were hungry

in the past did you not notice your

emotions start to get more heightened as

time went by you're getting more

agitated more annoyed you're being

patient but you're being patient the

correct way you'll end up saying things

that you don't mean to someone you end

up becoming a dick okay and this happens

to people when they get hungry it's a

very simple life example that I can give

you the same way that waiting for an

opportunity in the markets for the next

couple of weeks you might be waiting for

it but how are you waiting for it

because that's going to massively affect

your decision these guys here are

patient in the correct way they know how

to wait when to wait and why they're

waiting and exactly what they're waiting

for they're very very particular people

missed a little te there okay next one

is they're extremely emotionally

composed so I'm going to put emotion

composed now this ties into being

patient for example they take a loss or

they have a win it doesn't really move

them now to get to that stage is very

very difficult but it's very possible

with the right training which I'm going

to get to in later lessons people

wrongly think let me explain this point

because this is this is ridiculous why

people think this right so you'll get

brainwash into believing that the more

that you back test and those who aren't

familiar with with that that means when

you have a particular method that you

approach the market with you go back and

test that method people have told you

that if you go back and test your method

over and over again or that if you

accumulate loads of losses over the

years and you have that experience

you'll become more thick skinned and

you'll become much better at becoming

emotionally composed and that is 90%

wrong if you take this bottom part as

being time that would technically mean

that as time goes by so put scale here

that you become better if that's the

case why have I spoken to dozens of

Traders who've been trading multiple

years and it's still not profitable the

reason why you're watching this entire

Series in the first place is to know how

to stick it out in the right way if the

way that you're doing it at the moment

is the right way to approach the markets

and learning around actually becoming a

profitable Trader so this is not true

with time you don't just get better if

the information if the info is correct

then this is true if the info is not

correct you'll be like this and that 97%

of people that I talked about are like

that the next two traits are

consistent and disciplined to be

consistent you have to be discipline so

these are intertwined in a way this is

very important every single one of you

funnny enough actually has these traits

already you're already consistent and

you're already disciplined before you

come into the markets every single human

being on the earth is consistent and

they're all disciplined but at what

smokers for example are consistent and

they're disciplined at smoking people

who are out of shape and fat are

consistent at eating junk food and not

training and living a poor unhealthy

lifestyle you're all consistent and

disciplined but are you consistent and

disciplined at the right thing for

example when coaching people have spot

something very very key straight away

their language everybody's language is

very consistent with who they are all of

you can do some introspection and figure

this out for yourselves that the way

that you speak the way that you talk

walk and act and think all the thoughts

that you're having in your mind have you

ever paid attention to it when was the

last time you actually tracked your

behavior some of you might do this very

rare that a lot of people do how are you

not monitoring and how you not keeping

track of your behavior which is going to

be the very reason why you succeed or

fail in the end you can learn a very

very good method to approach the market

you might already have one if you don't

behave in the correct way you don't

think in the correct way and you don't

think like a profitable Trader you won't

become one it's the most overlooked most

under analyzed aspect of trading is the

way that you behave you need to track it

okay so you are consistent in you are

disciplined but you need to restructure

that to be around the right things and

that is exactly what profitable Traders

are like these are the only other traits

that I can talk about now you have an

idea of what a profitable Trader thinks

like and their traits you need to mold

yourself into that third point now you

have an understanding of what kind of a

Trader that you are also know the traits

of a profitable Trader now third point

is is probably the most important of the

Bunch Every profitable Trader has got

something called a life portfolio

and what is a life portfolio let me give

you an example let's say for example I'm

invested in the S&P I've got a couple of

businesses I've got income coming in

from different places if I am down in

one of my investments but I've got

income somewhere else it's going to

balance itself out I won't then feel

that loss that I'm in in one investment

when I've got another investment that's

up and it cancels itself out I'm going

to draw on here the average person okay

this is your everyday person let's say

all they've got is a bank account now in

that bank account they might have let's

say a ,000 if they lose £300 out of that

now have a net of 700 they're going to

feel that far far more then for example

another person who's got extra income or

they've got an investment so I'll put IV

here for investment and they've got

let's say 2,000 in there them being down

£300 in terms of their bank account they

might have spent that on something I

don't know had night out on the weekend

they're not going to feel it as much

because they know they've got extra

Capital sitting somewhere else that's

just a general example now let me talk

about it from a trading perspective so

Traders are focusing on these things

relationships Health this is mainly

physical health

spirituality I don't literally mean

lighter full of candles and sit there

and like literally hold your hands there

meditate and pray for profitability

that's not what I'm talking about here

and then they've got trading down here

and the final one I'm going to put here

is income say for example I'm down in my

trading I have a couple of losses draw

down whatever it is completely normal

but if I'm up in my relationships my

health is up my spirituality is up and

my income's up do you think I'm going to

feel that as much do you think that

those two three losses that I would have

had or that draw down streak that I'm in

I'm going to feel it as much of course

you won't because you're up in other

areas of your life now imagine you have

nothing nothing in your life that's good

other than trading all you've got in

your life is literally trading because I

get it you're all passionate you know

and you love what you do I do okay I've

been trading for8 years plus I love

trading but if all you've got good in

your life is trading and you're now down

in that not going to be good and guess

what's going to happen you're going to

feel those losses a lot deeper you're

going to feel that losing streak a lot

deeper you're going to feel those break

evens a lot deeper so profitable Traders

all have a structured life portfolio

very very important to structure your

life portfolio well you need to know

where the hell you're going in the first

place that's you now this is where you

want to get to if I was to say to you

you wake up tomorrow and you've got $10

million in your trading account you're

profitable you've done all those things

you've had a few watches you've had the

nice cars you've got all this stuff

right you've got a nice house Etc do you

even know where you're going to go next

do you even know what your purpose in

life is now I know that's a very deep

question to ask and not everybody's

going to have that figured out in the

beginning but are you even attending

your mind to focus on those things what

do you think your actual purpose on this

Earth is and the reason why this is very

very very very important and the reason

why this is critic I'm telling you it's

so so important is that when you

actually get access to the money that

you want to trade and you start making

the money people hit a brick wall

because they've put that on a pedestal

for so long they don't know what the

hell's next I've seen it hundreds of

times people go fulltime they get bored

they've got no purpose no fulfillment

nothing they might have made 50,000

100,000 whatever it might be they

splurged and they don't know what to do

anymore they've got access to the money

that they always dreamt of having but

they don't know what to do next and

again when you've got education out

there and you got people who are

inexperienced giving invaluable

information you're going to go in a

downward spiral it's going to get worse

and worse and worse for you and that

should not be the case you need to have

some kind of planning and some kind of

structure not everything's going to go

to plan but you have to have a structure

of what exactly do you want your life to

look like you need to write it out as if

you're literally directing a movie and

you need to understand it in layman's

terms where are you actually going if I

want to drive to London I know the

pathway that I need to take in order to

get there my satnav is going to

calculate the quickest route for me to

get there but if I don't even know the

destination what's the satav going to

calculate it's not even going to give me

a pathway to follow so if you don't know

where the hell you're going and you

think making money is the end of it it

you're going to get lost in your track

now obviously we know to get from where

you want to get to to where you want to

be you need the skill the skill to trade

the markets how are you going to get the

skill information as I said before now

your source of information has to come

from a structured education Source I'm

not going to go into explaining the

stupidity behind people who tell you you

don't need a mentor you don't need

education it's silly I don't want to

lose brain cells talking about this

ignore them people they don't know what

they talking about to get the skill you

need the right information and to get

the right information you need a

structured education Source Link in the

bio you might be wondering what in the

world defines good education because

there's a lot of it out there and as I

said before that the principle that I

gave you the correlation of the more

information you have the less wisdom

there naturally is one of my favorite

quotes that I like to go by that we're

living in a day and age where we're

drowning in information but starving of

wisdom and it's Food For Thought So what

defines good education this is a second

point because if education is going to

be literally the thing that gives you

the skill that's going to carry you

through from where you are now to where

you want to be how do you actually get

good education well I mean hint hint you

need to learn off somebody who's got

experience in the market the right type

so I'm going to put right here and this

leads on to the next Point they've

actually got wealth through the skill

wealth doesn't mean you're trading a$1

to $2 million account that's not wealth

true wealth it's very simple you have

assets that are appreciating in value

that are saving you more time and your

income isn't dependent on One Source

they've not just got one pocket where

they can dive into for money they've got

multiple different assets multiple

different Pockets that they can actually

pick into in order to attain money these

are the kind of people that could stop

Trading today and they won't need to

trade ever again because Investments and

assets are paying for their lifestyle

and their future Generations these are

the kind of people you want to learn

from so this is a major problem because

what's happening is the majority of

people who are teaching you now their

wealth is

literally

categorized in this a prop account for

those of you who are not aware prop

account is an account that is given to

you by companies that fund you and give

you money and say that well if you can

do what you say you can do which is

trade profitably then we'll give you

access to Lords of money in most cases

is this is simulated money so if you've

got a million dollar in one account in

one prop account you don't own that

money that's not yours okay that's money

given to you you don't have ownership

over it you can't extract anything you

please you can only extract that of

which The Profit that you made on that

account that's very very important to

understand somebody who's got a million

dollars or a million pounds in personal

capital of owned money compared to

somebody who's got it in prop Capital

One is actually a millionaire Trader and

the other person is managing seven

Figures it's a far big difference these

kind of people they're going to have a

certain type of experience there's only

so many things that they can teach you

about their financial literacy is only

going to expand so far and if you're

aiming to get to such big Heights do you

really want to learn of somebody whose

wealth is only categorized off of one

pocket like this a prop account really

that's like learning how to get in shape

of somebody who's fat you wouldn't do

that second Point

infrastructure now I all these terms

sound boring but this concerns your

future so it's important infrastructure

is key for example at Falcon we've got a

pathway where you start here so this is

you you learn the skill

through content material weekly webinars

all that kind of stuff again you've got

all that there then you get to a point

where you've got access to funding

through our in-house fund we're not

affiliated with anybody we've got our

own funding company inhouse which means

we are more flexible with the rules that

we can give to our students our students

are better suited with this fund because

it's designed in a way that C is for

them and not against them and this was

specifically designed in that way for

that reason we also got attach with that

that is literally in the works at the

moment the property fund okay so

students that make money through our

funding program they might for example

managing 500,000 each there might be 10

of them because a total of $5 million in

capital allocation there might be a deal

that pops up that says well does this

property available whether it's

residential or commercial it's going to

give you this much Roi per year this is

the investment required it might be

something like a quarter of a million

down these Traders can get together and

think well in q1 we just made 20% okay

in total now if they're managing $5

million in total Capital allocation

that's a million 25% of that is the

investment required 250k they all split

that amongst themselves they can then

get access to a property that can yield

x amount of return can split that

amongst themselves we've pretty much

built this property fund and that's

happened how through Marx contacts

that's the power of having a proper

Mentor I'm not going to bore you with

all the multitude of different things

that we've got for students again that

can be given forward in a different

video but this is lesson based again

education this is what proper education

looks like