Change your life in 90 days. Everything you need to know to turn trading into your profession. With this title, Borja Muñoz and Lorenzo Gianninoni have set themselves an ambitious challenge. Convince your readers in just over 250 pages that they can make a radical turn to their existence in just three months and dedicate themselves to a profession that is associated with multi-million dollar operations in the City or complex financial products.
Their approach is different and they show it from the cover: sunglasses, slippers, movie tickets… their approach is modest and ambitious at the same time. Modest because it does not promise to make a millionaire of anyone, and ambitious because their goal is almost more complicated: “The coin that pays the trading is not money, is the time,” says Muñoz, the Free Market, interviewed a few days ago in Madrid.
I must begin by making a confession: I am the least suitable person to do this interview. I have all my savings on the market, but the kind of investment I trust is what is known as value: long-term, solid business, analyzing the fundamentals…
To my friends who operate intraday, I always say they’re crazy, don’t do it, and that’s like going to the casino. So, I would almost tell you that this is a one-question interview, can you convince me that I’m wrong?
- Value and intraday investment have perfect coexistence.
- Right, in fact I often say that I love that intraday traders exist, because I, as value, generate liquidity when I need it.
- I don’t think I should convince you: they have perfect co-existence. I do my daily work in intraday, but in the long term I think of high revaluation values and strategic companies. The book is about how to be day-trader, but I don’t have to convince anyone. In fact, I have a lot of students who do both.
- Actually, my starting point is not so much to ask you to convince me that value is bad or incompatible with intraday trading. The idea is to explain to me the advantages of your investment model for an ordinary citizen.
- I always say that money is earned in the intraday, but the estate is forged in the value. However, I believe that intraday, today, is the surest way to invest. We are always in liquidity. I have students who also do actions, close their positions on Friday and on Monday rise with 20% less value, because of the instability there is. That doesn’t happen to us. We don’t contemplate that risk. We operate under a parameter, a system, a pattern … and always with a stop, we will limit the losses. We don’t care about today’s stress test or any political upheaval. In fact, we benefit from that.
- All those involved in this type of investment tell me the same: “the important thing is to know when to stop, to know how to take responsibility for the losses, etc…”But intraday trading is a zero-sum game: what one wins, another loses. What is the difference between those who win and those who lose?
Do not assume that the same thing? That simulators replicate exactly the market?
- I have like 4,000 alumni. I’ve been training since 2010. I have a lot of feedback, they tell me how they’re doing. And systems usually work. There are people behind us, we’ve given each other a lot of gorings for a long time. What happens? That when you are operating in simulated, the losses do not affect you, the emotions do not affect you, although of course, if you win 250 euros, you are happier than if you lose.
But when you enter the real market, what happens is that the ego doesn’t let you accept a loss. Hope is beginning to take effect. That emotion begins and people, instead of losing 100 euros, lose 1,000. In intraday you have to tolerate losses. Even in a very good ratio (like the one a person like me can have, I have a 78-22), I have to assume that doing things right, 20% of the times I fail. It is very difficult to assimilate by doing things well, I lose money. We’ve been taught that if I do things right from Monday to Friday, I pass the test on Friday. In the trading does not happen. In trading, you can do things wrong and win. That’s why not everyone goes for day-trading.
- Yeah, but everybody comes in thinking they’re gonna be the winners. What are the keys to letting yourself know if it’s worth it?
- Everyone’s worth it, because everyone who tries it in mockery wins. The book goes one step further, because it goes from philosophy to method. We teach the method. The book tries to alert us to the current situation, to what is happening. The world is drawing itself like an hourglass and you have to choose which part of the hourglass you want to be on. The currency that pays the trading is not money, is the time. I work 20 hours a month. That is my true value. I can make a lot or a little money, but I won’t have any more time. The experiences you don’t live go to hell. The book goes a little in that direction, so you can take the reins of your life.
Obviously, we have a solution. It is possible to do so. To know 100% of the essentials in 90-day trading is enough. We have had people who have had to explain everything to them from scratch, who have practically done no actions and in 90 days they discuss an entry. It is possible to understand a system, to see a graph, to know what is happening and to see an opportunity. But then comes the inner work: “I will manage greed. I’ll manage the euphoria.” Three weeks in a row without a STOP sign and people by a natural instinct go to the Porsche. Manage the panic, the fear: when you two STOP in a row, you shakes the hand.
We’ve done a show where we only charge if people win. We trust so much that we are willing to work for free. It’s been done and it’s been cashed. Mind you, the autodidact in trading has his days numbered. Don’t ask me why, but no one survives.