Anton Kreil first came to my attention in 2008 when I
watched a British documentary called Million
Dollar Traders. If you haven’t seen it, it’s worth watching.
The documentary sought to test the premise that people
can be taught to be successful traders (as opposed to the theory of good
traders simply being born that way). In this sense the documentary was somewhat
like that brilliant 1983 movie Trading
Places.
Several ordinary people were selected (after a thorough
interviewing process) and were then taught trading techniques. Hedge fund
manager, Lex Van Dam put up $1 million of his own money for the traders to
utilise. Day-to-day supervision of the traders was conducted by Lex’s friend
Anton Kreil.
Anton Kreil had a very brief career (2000-2007) in investment
banking (Goldman Sachs, Lehman Brothers and JP Morgan). He then retired (at around
the age of 28) before coming out of retirement in 2011 to establish the Institute
of Trading & Portfolio Management (ITPM). The ITPM is run out of Singapore
where Anton now lives.
The objectives of the ITPM are to teach retail
investors the techniques that traders at investment banks utilise. The ITPM has
a number of “mentors” (to teach students), and all of these mentors have had
careers at various investment banks. The ITPM also manages a trading portfolio
which is valued at approximately $10 million.
Anton Kreil has also lectured on the charlatanic
practices of some stock market educators (who are basically frauds). All retail
investors should listen to what Anton has said on this subject and also his
views on CFD providers and other brokers.
The ITPM has three primary products:
- A video series for the stock market or currencies priced at $1,499-$2,999 each;
- A three month remote mentoring program priced at $14,000; and
- A nine day “vacation” style one-to-one training program (price not disclosed).
Ok, so what are the good things about the ITPM?
- Anton Kreil is an excellent and highly engaging speaker and I also have to say he does come across as a fun guy to be around;
- I have no doubt that the techniques taught are very sound; and
- The ITPM does invite some successful students who have undertaken its course to trade money on behalf of the ITPM (but only very small amounts of money).
What’s not so good?
- The cost of the mentoring (via Skype) is very high (as is the video series);
- Just because someone has worked at an investment bank, it does not make them some sort of genius, however, many aspiring traders who have never worked at investment banks themselves wrongly hold this view;
- If you are just willing to do your own research you can easily find books and free you tube videos that will show you very similar things to what the ITPM teaches and you can keep the $14,000 to trade with; and
- Anton Kreil is often shown in his videos being chauffeured around in limousines, eating at fancy restaurants, staying at top hotels and flying around the world in business class, one can’t help thinking that this is all for show, but you can call me a cynic.
To expand on dot point two above, all traders at investment
banks have a number of distinct advantages over retail traders. These
advantages include:
- They can see (and replicate) their clients trades (some of these clients will be extremely good investors e.g. top hedge funds);
- Their trading costs are vastly less than for retail traders;
- They have the ability to actually influence the prices in certain markets because of the size of their trades;
- A couple of good years at an investment bank can set someone up for life (i.e. you have a few very good years at an investment bank and take home large bonuses and you are set for life, but it doesn’t mean for one minute that you are actually any good (by the way, a couple of good years as a small retail trader will definitely not set you up for life);
- The bank’s systems for executing trades will be state of the art;
- Bank traders are not trading their own money and therefore will always have some of the emotion involved in trading removed; and
- They can draw on the vast resources of the firm (both people and research).
These are the primary reasons why ex investment bank
employees who start their own funds often cannot replicate the performance they
had while they were in the bank.
There are many very good investors who have never
worked for an investment bank. Ken Griffin of Citadel is one that immediately
comes to mind.
It would be good if the ITPM made its performance
records available, but it doesn’t. I think this is a major issue, because if
you are charging people, they should have a right to see your record as an
investor.
Retail investors tend to run long only portfolios, they
do not consider using options and they do not generally know how to structure
trades properly. This is the primary focus of the ITPM’s teachings.
So, in summary, if you really like what you see with
Anton Kreil and his mentors, then go for it, but I think you can get the
essentials of what is taught for far less than what these products cost.
Remember, no one is teaching you alchemy, there is very little that is new
under the sun and in this day and age, just about any information is at your
fingertips.
