Andrew Keene on gold, bitcoin, the Dow, institutional order flow, + FREE eBook offer


Andrew Keene on gold, bitcoin, the Dow, institutional order flow, cnbc youtube trader ichimoku cloud triple confirmation indicator alphashark trading scalper reviews pullback indicator sv-scalper follow david moadel welcome to looking at the markets with
David Modell today’s special guest is mr. Andrew keen mr. keen is president
and CEO of Alpha shark trading which he originally founded as keen on the market
dot-com back in 2011 previously Andrew keen worked as a proprietary trader at
the Chicago Board Options Exchange Andrew currently actively trades futures
equity options currency pairs and commodities he is a regular guest market
commentator on such networks as Bloomberg TV CNBC and Fox Business so
thank you very much Andrew for joining me today on looking at the markets
thanks for having me on David yeah I really appreciate it so why don’t we
start at the beginning how did you first get started in the financial markets yes
I uh I went to university Illinois champaign-urbana and then I had a
finance degree and a concentration in accounting and to be completely honest
you know as a senior in college I really had no idea what I wanted to do with my
life and I interviews to do investment banking and financial adviser financial
analyst and then my father told me that I should look for a job to become a
trader and I remember because I grew up in the suburbs of Chicago you know I’d
go downtown and I would see those guys in the Yellow Jackets yelling screaming
like drinking alcohol during the day I’m like that’s not really for me but you
know when I had my interviews with a couple trading firms susquehanna
third millennium Wolverine and then board of capital management and it just
made sense to me I mean everything in trading is probability math it doesn’t
have anything to do with gambling unfortunately when people think it’s
just probability math over and over and I had interviewed I did really well and
then I went to the clerk to trade program with Bota Capital Management
right so let’s come to the present in 2017 or whatever’s left of it which
sectors and/or companies are you bullish and bearish on so I currently right now
I’m long a couple oil names and couldn’t depends on the day I mean oil is down a
little bit today I think the markets gonna still plug and chug along you know
2488 was the highs we had a huge reversal day on the daily chart mainu
all times with highs reversed and closed on the lows it just seems like the
market gets bought at every single pullback and since the markets been up
so much this year they markets up to close ten percent it’s just gonna
continue to get bought on any dip you know Amazon’s looked a little weak Apple
I think will continue to move higher especially with the iPhone news coming
out so I would say if I had to get big sectors to get long I think technology
looks the best I trade the thing name so Apple Baba strong Tesla strong Netflix
is strong Facebook strong so those names are strong the banks relatively look a
little weak so you know as we know it’s a market usually goes higher everything
goes higher but I like technology into the new year I’ve heard that you’re also
bullish on the crypto currencies is that true oh yeah I’m like the biggest bull
in the world so I’m currently and nothing is in stone yet but we’re
currently gonna launch a fund within hopefully a month on the cryptocurrency
market and Bitcoin is actually less risky at four thousand than it is that
forty bees is more socially accepted and there she just came out with an article
that said bitcoins gonna be I think widely accepted or Vietnam or sorry I
think was was that one of the Asian countries is accepting Bitcoin now so
like the more that it gets picked up the higher it goes and you know Bitcoin has
ran up so much so we Bighorn in etherium make up 67% of the cryptocurrency market
I think the cryptocurrency market as a whole which is 125 billion 130 billion
right around there it’s going to go to a trillion in five years I just indulge in
basically documentaries her movies in reading a lot on the sector and I just
loved it I think the opportunity is there could it go to zero absolutely but
my point of view a lot of the top ten to top 20 names have a chance of going up
tenfold so if I had a binary bed where something could go up tenfold or go to
zero I’ve got to put out hit some of my cash there so I’m not saying you know
it’s all your house in your car to put all your money in cryptocurrencies but I
think cryptocurrencies are a good hedge against a basket of stocks and I also
think if we do have a major correction at some point that’s gonna make the
cryptocurrency market goes higher it’s kind of a ploy against you know banks
around the world is printing their money but again on the cryptocurrency market
you got to be very very careful because there’s new icos and then ICO is
basically like an IPO there’s new ICO is basically every single day and a lot of
them are really really bad and they’re not actually correlated or linked to
anything a lot of people are starting to use crowdfunding to launch icos
so I’m bullish on the crypto market but before anybody dives it be very very
careful because there’s some suspect that stuff out there absolutely I agree
with you and yeah you don’t want to mortgage your house to to get into any
sector and certainly not crypto currencies and also it should be said
quick disclaimer nothing we’re saying in this video is to be interpreted as
investing or trading advice and I am not a licensed or registered investment
advisor so please do your own due diligence do your own research make your
own decisions and speaking of that you know I receive I’m sure you do too
emails and calls from retail traders every day asking for advisement on how
they can improve their trading you know I’ve heard that 90% of retail traders
fail at it that’s really unfortunate can this number be improved and how yeah
absolutely you know same thing as you I’m not a registered investment advisor
I can’t get recommendations or advice I can offer my opinion in everything that
I trade is 100% my own capital and my own trading account I mean today I’m
having a monster day and I’m up like $12,000 and that is all my capital so I
don’t have any outside investors in the my equity option space but in terms of
you know 90% of people losing money you know just like the cryptocurrency market
there are some really good you know moderators teacher coaches out there and
then there’s some that you know aren’t so good so you kind of do your due
diligence of you know what you’re learning you know
everybody’s gonna trade differently in this world everybody’s have different
risk tolerance everybody’s gonna want to trade different things you know some
people just like credit spreads someone who are along only some people are
actively in the market for eight hours but you know the way that I think that
people can move that ninety percent of traders that lose money basically simple
and easy you know educate in yourself you don’t have to take a little bit of
money and you know invest in your education you know trading is like a
business right you’re not gonna win every single day I get frustrated
personally because I think I should make money on every single trade but that’s
not realistic so you know educate yourself and dole gin it um go to
webinars you know get education for people that are trusted and respected I
know you interview a lot of people and we’ve got some really good guests on the
show so you know get educated by someone you know I personally I traded on the
trading floor for ten years so my level of trading knowledge is gonna be higher
and more sophisticated than someone that was never on the trading floor so just
you know see research you don’t spend time they obviously time in the seat
there’s a really good book called outliers it’s talking about 10,000 hours
of anything to be an expert so if you trade you know four days four hours a
day for a year that’s a thousand hours you have to actually trade for ten years
to become an expert but yeah I mean the three main reasons I think people lose
money is number one they’re setting up improper poor reward to wrist setups you
know good traders thinking about how much money they can make great traders
say I if I’m wrong how much can I possibly lose the second thing is you
know emotions emotions are always going to involve this is real money this is
your money and it’s that’s a lot of money sometimes and the third thing is
you know getting a good teacher educator or coach I agree with everything you
just said there that is really important you know those concepts are those first
of all yeah get a mentor and it doesn’t have to be me it could be you know
somebody I’ve interviewed a lot of people that are some great mentors and
I’m at you to that you know that roster of
the great technicians and the great you know coaches out there if people want to
tap into your wisdom and insight and over a decade of trading floor
experience they should go to alpha shark comm that link will be in the
description if people go to alpha shark comm what are they going to see what
kind of services do you offer yes so what we offer we have subscriptions and
products so on the subscription the main one because we run a live trading room
that is open from 8 a.m. Central Standard Time to 3:30 p.m. Central
Standard Time so it’s a seven and a half hours of audio and visual throughout the
course of the day like I said we have some traders that sit there for seven
hours a day we use me some traders that go there once a week but that is in the
main core product is our trading room I run it for an hour 15 minutes every day
and then I have four other full-time moderators that once again are not
registered investment advisors that run the room when I’m not there they’re all
personally trading on their own capital none of that capital is mine at all and
then another product side I guess that education is very important we have 14
educational courses on demand and DVD we’ve sold over 10,000 courses as soon
as I launched the company and you know the new hot thing is proprietary based
indicators so we have 10 provider business indicators on theorem
tradestation and ninja yeah I’m looking at alpha shark calm right now I really
like the resources you have on there you’ve got your blog you got all kinds
of products on here and people should Jeff should most certainly check it out
and you can read right on there what your track record is which is quite
impressive and the fact that you’re using real capital you know this is not
simulated paper accounts I see a lot of websites where they claim to teach
people how to trade but then they have it in the fine print that all of their
quote unquote results are hypothetical that’s one thing I look for in the
disclaimer but you know I’m getting the impression and tell me if I’m right that
all of your results are real and verify yeah I mean we don’t have any CPA audits
on anything because I actually just don’t have to I’m a compliance officer
chor me not to but I mean I’ve made millions of my trading career in seven
and eight I mean over may close to a million dollars trade an apple so my
best years were seven and eight I mean I have no problem saying currently right
now and down in the year in the trading room traders can look at my piano my
profit and loss daily and year-to-date anytime they want throughout the course
of the trading day so I’m actually you know good and bad is
when I am trading real capital and I’m trading in front of people and I’m
showing them my account you know sometimes I don’t make money
like I said I am down this year not very much like I’m looking at my calendar
right now I’m about like eleven grand before commissions I was up fifty like
in the first three weeks and I lost like 80 and then I’ve been kind of back and
forth around this break-even level so you actually been a pretty hard year for
me trading wise and just think that a lot of unusual option activity I usually
trade hasn’t been working out well it that well but yeah I do trade my own
capital like you said I’m not a registered investment or soak and
recommendations or advice but you know we have one of the largest all all day
audio and visual trading rooms in the world sure I want to talk about precious
metals one of my favorite topics do you currently have a position in precious
metals either the ETFs or the physical I’m long physical gold I’m long 15 gold
coins and my first sale will be $2,000 in the 3000-4000 and you know I’m you
know since I had very successful you know trading career on the trading
floor and most of seven and eight I’m always like firma bear the market and
that’s usually why I tried better in a bearish market and gold just got crypto
currencies I think is a hedge against the market and I think if the market
does have a rollover the Gold’s gonna go higher
I do not currently have any positions in any gold or silver names I don’t trade
them that actively just because a lot of the names like
Bear cold you know Newmont they don’t really trade that much during
the day and you know the ATR Average True Range is are pretty small so I
don’t have any of that but I am long physical gold I think you know gold just
like crypto currencies is a good you know portfolio hedging it’s a long
basket and I think if we do get a market
correction which I think will happen I don’t know if it’s gonna be this week or
in four years and I think it’s gonna be ugly
then you know putting some money you know in gold is what I have never a bad
idea to diversify your portfolio with some precious metals at least that’s
what I believe now I wanted to talk about institutional order flow from what
I understand you actually look at that as one of your metrics or guidelines to
identify good trades is that true yes so what I use is a proprietary scanner
it’s called trade alert they’re based out of New York I’m very good friends
with Henry he’s the CEO of the company and I watched her institutional order
flow in the option market so there’s about 8700 publicly traded companies
4199 with options in those stocks and I watch her institution order fill in the
option market of you know activities and calls and puts you know lately it’s
lugging a lot more calls than it has puts but basically the way it works is
options are used for one or two reasons that options are used and they’re used
as a speculation or a hedge I am looking for trades that I think are speculative
trades so you know pagp was a perfect example so a huge institutional order
flow on October and November calls and today the stock spiked up over $1 it has
actually recently sold off from the highs but I took nice profits on that as
a stock move higher I’m still in those that position so institutional order
flow in the option market is how I’d trade it’s been my bread-and-butter
since I was limit rating for isn’t on the trading floor you know that’s what
we looked for we saw institutions you know if they’re selling puts they’re
probably you know bullish the market if they’re buying calls nor are they using
those calls for speculation or hedge and then I just use that information to put
on a reward to risk setups yeah I totally agree with the idea of trading
with the order flow because you know you you could either you can either go with
the tide or you can try to fight against it and you know I’m not gonna try to be
a hero and fight against it yeah makes sense to me Juana we kind of
touched upon this already but I’d like to ask this question what do you think’s
gonna come first Dow 40,000 or doubt 10,000 our 40,000
yeah I mean I I don’t even know where the Dow is right now was it in the
middle yeah I mean it’s 20-something yeah no I mean I like I said I always
think that the the market I mean it’s like this is what I’m talking about
it’ll listen the market is the biggest Ponzi scheme in the world and this is
exactly why because the stock market is just a supply demand curve between
buyers and sellers if there’s more aggressive price buyers price goes
higher for more aggressive solid prices goes lower if you look at the who buys
the stock market right we have had we have hedge funds pension funds mutual
funds 401 k’s retail investors okay then who’s selling it no one’s selling a
surprise always goes up in theory right that’s why they always say that you take
the escalator up and in took the elevator down so the market in theory is
always gonna go up over time so you got to just say what’s gonna happen first I
think we go higher I mean we’ve we haven’t this is the longest we’ve gone
to history without a 10% correction and I think that’s gonna happen but if
you’re gonna sit here and be short this whole time you’re getting your face
ripped off so you know I am long only right now I wish it wasn’t like that I
wish I could start getting short stuff but it’s hard to be short this market
that we say never short a doll market and with the VIX trade in 1150 this is a
slow grind higher and the markets can remain irrational longer than you and I
can remain solvent as they say so yeah I’m not gonna try to fight that and
finally was there a moment when trading or investing just clicked for you yeah I
mean to be completely honest um so when I started we had 14 people in our Clark
Street program and only four of us got to trade and when I started on the train
for I actually don’t think I got it then I don’t know how line is about six
months I mean what happened is I got actually really really lucky
our firm basically told us never saw puts especially like ten cent puts and
they came in one day that crossed some puts and Kraft Foods and I want I bought
like 200 of them or something and I may like $58,000 like in my first
three weeks training and I really I just got lucky to be honest like I was always
told never to sell foot sand like ten cents the only buy him and I just got
lucky on that trade and then over time you know it started clicking more and
more I mean I lost close to a half a million dollars in a stock called am AG
a may have fartist pharmaceuticals and there was some weird volatility spread
that I didn’t really understand at the time so now I get it more every single
day and I you know trade in his heart like we said 10,000 hours to become an
expert you know trading is hard understanding it you know a night raid
95% is equity options based equity options the hardest thing to trade
I mean stocks futures and Forex is DC you buy it it goes up you make money it
goes down you lose money and in the option market you can put on strategies
known as iron condors or I had butterflies or if the stock doesn’t move
at all you actually make money which in stocks so where did he actually click
nine months of clerkship trade program then probably six months of training so
pride and click four run a year and three months or a year and a half
interesting but it did click and you’ve put in much more than the ten thousand
hours necessary and you’ve got the the expertise you’ve got over a decade of
trading floor experience so if people want to you know tap into your know-how
if they want to communicate with you and your highly-trained associates in the
trading room if they want to get those trading alerts and if they want access
to all of the education and resources they need to go to alpha shark calm and
that link will be in the description I really appreciate your time today I
think this has been fascinating if people want to contact you how can they
do that for more information yeah so I lived I on my email my phone
is attached to my hip so Andrew at alpha shark calm I get close to 500 emails a
day I respond to every single one within 24 hours so if anybody has any question
they’re interested and wedded if they want a free trial to the trading room if
they want some our option education please please please just reach out to
me personally I don’t have an assistant go for my email I do myself
it’s Andrew at alpha shark calm and what about social media Twitter
Facebook so on yeah Twitter I have like Twitter is my
biggest following because five years ago Twitter was the biggest I have I don’t
know thirty five thousand or something twenty-eight thousand its keen on market
ke e and E on market on that was we rebranded from keen on the market to
alpha shark but since I my Twitter followers so big I had to kind of keep
that I couldn’t change the name so that’s my twitter instagram google it i
don’t know it’s like Andrew keen underscore official YouTube I put up two
videos every day on YouTube um look for Andrew keen on that one so yeah I
contribute the most probably on Twitter yeah and why not check out mr. keen on
Twitter on YouTube and of course go to alpha shark dot-com Andrew keen this has
been a really great interview I learned a lot and you’re welcome back anytime on
looking at the markets thank you so much sir
okay thank you so much thank you for watching please like comment and
subscribe and I’ll see you next time

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