.png){kind=small}
Introduction - Pain & Tail Risk Trades
Hi there!
In Part 2 of this series (ITPM), Anton Kriel provides a comprehensive exploration of key concepts vital to the ITPM process. From dissecting the Tail Risk trade to unraveling the distinctions between trading and investing, Kriel's structured approach demystifies complex ideas for retail traders.
In Part 2 we also delve into the intricacies of the Pain Trade, Look at a bullish ITPM Long Short Portfolio Example, and conclude with insights on achieving God-Like Trader Status. Kriel's commitment to clarity ensures that even retail traders can interpret and comprehend these crucial concepts with confidence, bridging the gap for retail traders between conscious incompetence and conscious competence in the dynamic world of financial markets.
Part 2 of this series reviews the following topics:
Tail Risk trade
The Difference between trading and investing
Pain Trade
Long Short Portfolio Example
Tail Risk Trade - Credit Swiss Example
The second example that Anton gives in the God Like Trader Status Seminar is about tail risk trades. Within the example, students are instructed how to find outlier trades that have the capability for massive risk reward.
Within this example Anton explains:
Credit Swiss this is a different ball game, very different ball game, tail risk trade. This believe it or not if you look at it hindsight is insane!
Again the best way to ingest all this information is binge watching each of the parts below and then going back over them slowly to understand the structuring and timing mechanics. I have clipped each of these areas for you below:
ITPM - Example Credit Swiss (CS) - Tail Risk - Part 2 - Setting up the Parameters
ITPM - Example Credit Swiss (CS) - Tail Risk - Part 3 - Structure of trade
ITPM - Example Credit Swiss (CS) - Tail Risk - Part 4 - Structure of trade - Scenario 1 Outcome
ITPM - Example Credit Swiss (CS) - Tail Risk - Part 5 - Structure of trade - Scenario 2 & 3
ITPM - Example Credit Swiss (CS) - Tail Risk - Part 6 - Outcome
ITPM - Example Credit Swiss (CS) - Tail Risk - Part 7 - Outcome - Big Payoff
ITPM - Example Credit Swiss (CS) - Tail Risk - Part 8 - Outcome - We Like Volatility
ITPM - Example Credit Swiss (CS) - Tail Risk - Part 9 - Outcome - Big Move Down
Ultimately this type of trade is an outlier in your Long Short Portfolio explains Anton and it is something that is typically done at a cheaper cost than your usual positions. Potentially out of the money and with a large catalyst.
Difference between trading and Investing
One of the best things to come out of this example is how simple Anton explains the difference between trading and investing.
He says:
So that's a tail risk trade, now let me advertise to you the beauty of trading versus investing. that's the entire history of credit Swiss stock price imagine all the drama the shenanigans the noise the the nonsense over the years that investors have to deal with and we come in here and play this right at the end and make a fortune that's the difference between Trading and investing.
Pain Trade - Carvana Example
Within the final example of the “How to achieve God Like Trader Status” seminar Anton reviews a Pain Trade example:
Remember a pain trade is when there's a huge amount of positioning in something that becomes consensus but then the fundamentals change and it moves massive in the opposite direction and everyone who's got the consensus position on feels maximum pain.
The best parts from the seminar are broken down for you here to go through:
One of the best parts about this example is the confidence that Anton has in the students within the Society Discord, all of which have completed a mentoring programme. He believes that students can build their own structures to match their trading ideas and make a lot of money for themselves using the knowledge they gain from ITPM.
This means that they don't have to rely on someone else's strategies or methods, but can create their own unique approaches to trading. By doing this, they have the potential to earn a huge return on investment (ROI), which is a fancy way of saying they can make a lot of money compared to what they put in.
The education they receive from ITPM gives them the tools and knowledge they need to succeed in the trading world. It teaches them about different trading techniques, market analysis, and risk management. With this education, students can confidently take control of their trading journey and have the potential to achieve great financial success.
I guess, what I am trying to say is this breakdown is a key example of attaining God Like trader Status can be achievable by the students of ITPM and when they are trading by themselves. It goes back introductory quote that Ed Shek said at the start of the seminar:
“Wherever you are on your journey, you are very much part of the ITPM community, which is without a doubt the best community for retail traders to empower themselves”.
This is something I definitely believe is a true statement and proven to be true in this trade example.
Long Short Portfolio - Bullish Bias Example
Tying all the trade examples together Anton, discloses how a typical portfolio on a 100K account with 10 theoretical stocks should look like. This example by Anton is something I don’t believe has been shown in any of his other YouTube seminars or any other readily available ITPM content. Of course this is something that is taught within the education, but to get this for free is a great example for retail traders to try and understand how the ITPM system works.
Anton Explains:
So we've got a a model portfolio here so imagine this is the stock portfolio .Okay you would have your bread and butter trades 1 2 3 4 5 6 7 8 9. six is your unbelievable turnaround story. Okay fundamentals are turning, Market still overly bearish they haven't changed they haven't moved they're positioning, stock starts moving …pain…. you've got a boatload of call options in your account right. Trade 10 it can be a an early X growth stock so a stock that's had a good past maybe but now they've gone X growth okay that would be more of a bread and butter trade where you set up a put option you look for a 25, 35% move to the downside you get your timing right. It's a company or stock that goes X growth that's bread and butter but it's usually got a higher market cap so it's not a midcap it's usually a large cap stock or a mega cap or you just replace that with a tail risk trade where it's actually over… it's a proper bankruptcy or a big tail risk move okay like the credit Swiss trade.
Setting up a long short portfolio is vital for retail traders to understand. It is basically the lifeblood to managing your trading account and how you adjust your trades should align to your risk bias that you are forecasting. What Anton showed us during his presentation was just a small peek into all the amazing things you can learn in the course.
Conclusion
Anton's YouTube Seminar is super awesome! He shares so much information that you won't find anywhere else. It's like a treasure trove of knowledge! And guess what? There is even more amazing content to come from this seminar it Part 3.
In Part three of the "How to achieved god like trader status" seminar we will explore how:
Market direction shouldn't impact your ability to make returns
Chaotic Retail trader mistakes; and
How to Achieve God Like Trader Status.
Like and subscribe for Part 3.
Discounted ITPM Courses
Embark on a journey to financial mastery with the Institute of Trading and Portfolio Management (ITPM). Join the exclusive Society Discord channel led by Anton Kriel, where transformative trades and advanced strategies are unveiled. ITPM offers unparalleled education, mentorship, and real-world insights, empowering you to become a successful, God-like trader.
Enroll now to unlock the secrets of consistent profitability and join a community dedicated to mastering the art of trading. For exclusive discounts on each course, head to www.theinstitutetrader.com and seize a limited-time offer of 50% off. Your path to a professional trading education starts with ITPM—where knowledge meets opportunity!