Darrell Martin of Apex Trader Funding On The 5 Essentials for Smart Investing
An Interview With Jason Hartman
Be patient and disciplined in all investment decisions. I’ve found money chases those who are patient and disciplined, and people chase money that are not patient.
As a part of my series about The 5 Essentials of Smart Investing, I had the pleasure of interviewing Darrell Martin.
Darrell Martin is the Founder and CEO of Apex Trader Funding. Darrell, who coined the phrase “diagnostic investing,” has designed multiple algorithm-based trades.
Thank you for doing this with us! Our readers would like to learn a bit more about you. Can you tell us the “backstory” about what brought you to the finance industry?
I needed to make more capital to care for my growing family, as my regular 9–5 job was not earning enough. I also wanted to create another income stream due to the job market’s uncertainty.
Can you share with our readers the most interesting or amusing story that occurred to you in your career so far? Can you share the lesson or take away you took out of that story?
When my daughter was just 3 years old, she climbed up in my lap and asked what I was doing. I told her I was trading and she asked me to teach her. A little shocked, I taught her the exact entry and exit rules. My wife immediately ran over and began recording the encounter. She showed fantastic discipline, entering when she should, exiting when she should, and even telling me not to touch the button till everything turned green. She knew the rules, stuck to them and made some nice quick scalp profits. From that, I learned to trade like a child without all the baggage and worries. I have taught that lesson many times. My biggest mistakes have been deviating from my plan on discipline and patience. Both my children (10 and 16 years old) now trade instead of earning an allowance.
Are you working on any exciting new projects now? How do you think that will help people?
We are working on expanding platforms and have plans for traders to choose from various trading styles and on-the-go trading mobile.
Ok. Thanks for all that. Let’s now jump to the main core of our interview. According to this report in Fortune, nearly two-thirds of Americans can’t pass a basic test of financial literacy. In your opinion or experience what is the cause of these unfortunate numbers?
The educational system in this country needs to be improved in training Americans about savings, investing, and financial literacy. Combine that with parents needing to know what to pass on to their kids, resulting in a lack of financial literacy. However, that can all be changed by educating oneself and passing it on to one’s children.
If you had the power to make a change, what 3 things would you recommend to improve these numbers?
The three things I would recommend are:
- Implement required education on savings
- Implement required education on actively investing in a variety of assets classes
- Implement required education on large purchases like houses and early retirement preparation.
Ok, thank you! Now to the main question of our interview: You are a “finance insider”. If you had to advise your adult child about 5 non intuitive essentials for smart investing, what would you say? Can you please give a story or an example for each?
Always have a defined entry. This is the one thing you can control. Only the entry is in your control, so set it and stick to it.
Always have a defined risk exit before entering a trade or investment. It is too easy to let emotions take over once you have made a financial decision. Therefore, it is vital to have an exit plan should the investment go against you.
Always have a defined exit plan for taking profit from a financial decision. So many people have seen massive crypto or stock or even housing profits disappear by holding on forever. You should have a sound and defined plan on when to take profits.
Remember, profits are never satisfying. You could have exited earlier and made more or exited later and made more. It is a rarity, like hitting a hole in one, to exit at the peak of profit potential on an investment. Therefore, take your profits, don’t look back, and move on to the next investment.
Be patient and disciplined in all investment decisions. I’ve found money chases those who are patient and disciplined, and people chase money that are not patient.
It’s almost a lot like white water rafting. You don’t control where you exit, only where you enter the water. There may be some rough waters, and you must have a plan to survive that, or it can be fatal. When you want to exit from a good ride, you must plan and begin paddling to shore ahead of time, as the water carries you forward the entire time. Some days you just want to keep going but remember there will always be another day to ride the rapids. Always be alert, patient, and disciplined when rafting or investing, as they can be full of excitement and fraught with peril if not executed correctly.
What are your thoughts about investing in cryptocurrency? Can you explain what you mean?
Cryptocurrency has its definite upsides but due to its wild volatility and lack of regulation overall, I think it is wise for most investors to steer clear of cryptocurrency and look at more stable assets like real estate and gold.
What are your thoughts about daytrading, using apps like Robinhood? Can you explain what you mean?
Day trading apps put trading in the hands of many traders at a fraction of the cost but without much education. This reality has helped some make fortunes while making it easy for a significant majority to realize a substantial loss. It is essential to treat trading as a professional skill and get proper training from those who do it regularly and not just hop in on the latest meme stocks, so you are aware of what and why you are making the transactions you are making.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?
John Netto is a mentor of mine who helped me learn the most important lesson, managing risk. He has a mind for the markets and a heart for helping traders. I spent a week with him in his New York Office and had many phone conversations. I contributed to his book “The Global Macro Edge” on one of the trading tools I have developed. Without mentors, finding lasting success in the financial markets is challenging, and I am grateful for his time and commitment to me.
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
What are you doing today to make your tomorrow better than yesterday? I believe in constantly trying to improve in Life, whether in fitness, finance, family, or faith. I desire to grow each day in at least one of these areas and take time out each morning to focus on each area.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the greatest amount of people, what would that be? You never know what your idea can trigger. :-)
Always remember to give right off the top of your income no matter your income level. The first thing I do when receiving income from any source is to give at least 10% to my local church or favorite charity, such as a local community center or even my kids’ school programs. When I give off the top, I am blessed even more than if I wait to give out what I have left. It also puts me in the correct frame of mind to keep my priorities straight. I learned this from my Pastor Robert Morris at Gateway Church in his book the Blessed Life. It is the most giving church in America, and he has led by example, giving away cars and even his houses multiple times over. This has impacted my Life, business, faith, and family and made the world I live in a better place. The more we give, the more we learn to value what matters in Life, which is loving one another.
Thank you for the interview. We wish you continued success!
About The Interviewer: Jason Hartman is the Founder and CEO of Empowered Investor. Jason has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. Empowered Investor helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs. Through Jason’s podcasts, educational events, referrals, mentoring and software to track your investments, investors can easily locate, finance and purchase properties in these exceptional markets with confidence and peace of mind.
Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate. While brokering properties for clients, he was investing in his own portfolio along the way. Through creativity, persistence and hard work, he earned a number of prestigious industry awards and became a young multi-millionaire. Jason purchased a California real estate brokerage firm that was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s sought after educational events, speaking engagements, and his popular “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 189 countries worldwide.
While running his successful real estate and media businesses, Jason also believes that giving back to the community plays an important role in building strong personal relationships. He established The Jason Hartman Foundation in 2005 to provide financial literacy education to young adults providing the all-important real world skills not taught in school which are the key to the financial stability and success of future generations. We’re in a global monetary crisis caused by decades of misguided policies and the cycle of financial dependence has to be broken, literacy and self-reliance are a good start. Visit JasonHartman.com for free materials and resources.
