by Larry Jacobs - Editor of Traders World Magazine
Question: My first question is what led you to trading?
The short answer is the idea, that for the first time in my life, I had a real opportunity in front of me. The kind of opportunity that would give me the life that everyone wants, but almost nobody has.
Question: OK so what type of life is that:
True independence was my real motivation because behind that, I knew that everything else could work out for me. I knew that I was different than the majority of people, and did everything possible to fit in, but it never happened. I had problem with authority and because of many experiences in standing up to others supposedly higher up than myself, it was clear at an intrinsic level that somehow, someway, I had to find a business and make it work. I knew that I wanted to see the world, live where ever I wanted to live, and make the kind of money that would give me the life that I wanted and ” not the life that life wanted me to have”
Question: How did you come in contact with Trading?
I frequented book stores and began reading most of the major magazines like Futures and Stocks and Commodities. That got my attention real quick, and so I began to investigate the business. I went through a listing of all the Major brokerage houses in my area and started calling and asking questions about the business like, what is the kind of life this business can give me?, what’s involved?, how long does it take?, and what do I need to do?. I really didn’t have any money at the time, so I borrowed some from a friend and went downtown and bought 2 suits, some shirts, 2 ties, one pair of shoes and I started interviewing the financial institutions. To this day I still believe that they actually though that they were interviewing me, but I was interviewing them. I was dead set on dialing into what direction to go in, within the business of trading.
Question: How you get your first break, and where did it come from?
My first major break was meeting up with a major player at a large institution in Boston, Ma. by the name of Frank Casey. I cold called the institution and after getting through the gauntlet, I was transferred over to him. I introduced myself, and straight out told him that I really didn’t know why, but that I was totally magnetized to the business and more over, becoming a Trader. He told me to meet him at his office when the Market closed and we would talk for a while. Believe it or not, I actually asked him what time that was? He laughed really hard for a few seconds and said 4:00 PM. ” I answered, I’ll be there”. We met and immediately established a level of communication and bonding that had only happened a few times in my life. He saw it right away. People at that level are extremely perceptive, and he knew that I was already in deep and completely determined to make the business happen for me.
Question: What did he say to you, that convinced you that you could become a trader?
He made it very clear that if this was what I really wanted, it would give me the life that I wanted in return. That this would be the most difficult thing that I would ever do with my life, but that at the end of it all, if I made it through what was in front of me, I would have the life I envisioned. He gave me strict instructions on where to begin by reading a few books. The first was the original version of Market Wizards by Jack Schwager. The second was The Elements of Successful Trading by Robert Rotella. After reading Market Wizards, I was totally convinced that I could do it, that I could become a real life profitable trader, and that I didn’t care about whatever I had to go through, that I was going to accomplish this with my life! It was a silent pact with myself, a decision so strong and so absolute that it actually changed the destiny of my life. The second book from Rotella gave me a sound overview on the Markets and more importantly “Technical Analysis” . That the Objective approach as demonstrated by Technical Analysis was the preferred techniques to analyze and trade, because it clearly eliminates the noise and confusion that the Smart Money is falsely broadcasting out into the public domain. I read each of those books at least 100 times with a highlighter in hand.
Question: What happened then? How did you start trading?
With no real formal education, I started off on a self study mission that lasted three and on half years. I read over 37 books and trading reference manuals, and took three trading courses. The most difficult part for me was that I remember I really didn’t have allot of money at that time. I had a small high end construction restoration firm, and had to work and study at the same time. I would get up at 4:30 AM and plan out what I needed to do for my company, and then start studying. Then at least three nights a week I would stay up all night at a coffee house inside a mall and study there so I couldn’t be interrupted by anyone. Then, go back to work in the morning and would try to catch 15 minutes sleep here or there to make it up. You would be surprised what 15 minutes of sleep can do for you when you’re on a self inflicted sleep deprivation diet.
After 3 years of that I moved to the west coast with my girl friend, and began the final leg of my studies. I slept during the day, and stayed up all night every night for six months straight. After exhausting every indicator and trading methodology know to man at that time, I focused on only a handful of superior indicators that had stood the test of time in being able to truly ” indentify where The Smart Money was trading. In the mean time I was calling and having key conversations with traders in other countries, picking their brains and using what they had to say as a sort of think tank for my trading future.
Question: Excuse me but I need to interrupt for just a second. You mentioned the Smart Money previously. What is the Smart Money and why were you so focused on it?
Good question. At end of it all, the Smart Money are the largest institutions and insiders who operate within the Markets, who can and do move prices from one level to another, and will change the direction of a trend from one direction to another. Clearly stated, the Smart Money is in control of price movement. When you learn how to indentify when and where these players are trading in or out, you trade in the same direction and significantly increase your probabilities of highly profitable trades. For example, I know very well that my edge in trading, my greatest positional advantage as a trader is patience. I know more than enough about Technical Analysis and Trading to trade almost any good set-up. But I know from experience that when I wait the preferred trading set-ups where the Smart Money is behind that set-up, that I am trading only the True High Probability trades! Any other type of trading leads to Sub-Standard returns and more than likely will be the core of the reason to blow a trader or investor out of the business. Simply stated in trading terminology we define it as” the inefficient use of investment capital”.
The most important thing for a trader or investor is first to know “What is the current state of the US Markets” and secondly ” What are the realities of the near term future directional price movement”. You back these two up with the Smart Money Trading behind it, and your looking the essence of “High Probability Trading.”
Question: You have mentored traders from the professional level to the beginner. What parting advice would you give them to become a truly great trader?
Trading for a living is in my opinion the greatest profession in the world. Myself having considerable training in self development and communications, my advice would be to create a positive environment for your future, and not the negative one that life would like you to believe is for you. Empower yourself and believe in yourself like never before, and never let anything stop you from making this happen for yourself. Invest in yourself and educate yourself, and stay aligned with like minded people.
Question: I can’t finish the interview without asking why, after all you have been through to learn the real secret to trading, would you want to give it away?
This is a question that often approaches me from the educational side of my profession. The answer is simple for me. I believe that if you really know how to do something in life, that if you are a leader instead of a follower, that if you have a certain level of spirituality and a humanitarian, then you should look for the way to give that back to others, who are really seeking an opportunity. Let’s face it, the out sourced jobs in the US are never coming back, politics because of a lack of real leadership will continue to erode the educational system leaving the majority to the way side. Knowing all this, the reason why I founded The Inside Technician. Here our student have equal access to all the tools they need to make this business happen for themselves.
Young people by learning how to time the markets can grow and protect their retirements, guaranteeing their futures. Those looking to retire can now do it much earlier. The average person needs to understand that things have changed dramatically from when I started. We have webinar rooms to facilitate distance learning as if you were right there, and it’s all recorded for review by the student. The analysis programs we use to determine when to trade are much simpler to use, and the price data is updated in real time. Trading is the Final Frontier. All you have to do is walk through the door and see for yourself what’s on the other side.
Final remarks for the interviewer:
I have to say that of all the interviews that I have conducted from traders in my career, I have indeed changed my perspective about the realities of trading profitably. Because of this interview with Jeff Kilian Chief Market Strategist of The Inside Technician and personally subscribing to The Nightly Market Intelligence Report since inception, I have seen with my own eyes actual proof more than a number of times, of how the market has turned in the direction that he reported it would, and how he trades the S&P 500 E-Mini Futures in Real Time for some of the largest profits any trader could produce.
“ If you’re looking to make a 1000% a week, I’m sorry you’ve come to the wrong place. I’ve been down that path, and it just doesn’t work. But if you want to learn the foundational skills required to attain financial independence, I can show you how. If you want to learn how to read the market correctly, the trading setups as they are happening, and where the smart money is going. I can show you how. If you believe that the time has arrived to have more informed conversations with your broker/ financial advisor with regards to the recommendations they’re making to you, this I can show you.
Jeff Kilian, Founder and Chief Market Strategist for THE INSIDE TECHNICIAN™, is one of the top Professional Traders in the world specializing Expert Market Timing and the S&P 500 E-Mini Futures. He has devoted the past 20 years developing a proven, successful, repeatable, trading methodology based on technical analysis to “Find, Track and Trade with the Smart Money.”™ He is a frequent contributor to numerous financial trading publications and presents his “NIGHTLY MARKET INTELLIGENCE REPORT™ recorded live, five nights a week, to clients throughout the world. What truly sets Mr. Kilian apart from all “others” in his field becomes obvious whenever anyone hears the passion resonate in his voice during any of his SOLD-OUT webinars. This man lives to teach others to become successful professional traders. His students from virtually every corner of the world attest to this fact through the volumes of “THANKS” he receives on a daily basis. From a 10 year trading recluse, to one of the most sought after mentors. Within Mr. Kilian exists a proven professional, a gifted communicator, and most importantly, undeniable true leadership.