Latest / Financial Survival Network / Forex Trading and Passive Income with FMTrades - Kevin Jefferson #5841

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Forex Trading and Passive Income with FMTrades - Kevin Jefferson #5841 · Financial Survival Network

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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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thrive in today's trying times. You need the Financial Survival Network now more than
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ever. Go to Financial Survival Network dot com and get your free newsletter and
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gift. Financial Survival Network now more than ever, and welcome. You aren't
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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
13:31
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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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
14:48
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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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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dad, Thanks thanks for pointing out the one be that I had in all
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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
17:37
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
17:49
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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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
18:37
who program them, they programmed them on a very suspicious set of presumptions,
18:42
and so because those presumptions are faulty, a lot of times bots will they
18:47
perform for a short period of time and then they stop performing because they're taking
18:51
assumptions that aren't right. Because that's build back on the premise that most people
18:55
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
19:12
satisfied with because he knew he understood market structure in the wholesale nature of it.
19:17
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
19:33
to find out more about you, connect with you on the web. But
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where is the best place to go? Here? Best place though is um
19:38
FM trades dot com FM like a radio station, trades with as dot com
19:44
On Instagram is the only place I probably post picks outside of LinkedIn. Instagram.
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My handle is at help Made Millionaire HLP Made m Ade Millionaire. LinkedIn
19:56
is I think Kevin L. Jefferson and then Facebook is the same. But
20:00
you just go to anfimtrace dot com. You can go to mysels from there.
20:03
All right, Well, there's a link to it in the show notes
20:06
this interview on Financial Survival Network dot com. Make sure you go sign up
20:11
for a free newsletter when you're there. If you've got a question for Kevin
20:14
myself, shoot us an email k l at Kerry lutz dot com. Interesting
20:18
concept, Kevin. We'll definitely have you back on more to expound a bond
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it further, learn more about it, and we'll talk to you soon.
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Right. Thank you, Kerry, great to be with you. Enjoy the
20:29
day. Thanks for listening to carry Letts's Financial Survival Network, your solution to
20:34
today's trying times. For the latest, go to Financial Survival Network dot com.
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Financial Survival Network now more than ever,