In this episode of How To Trade It, I speak with Andrew Bustamante. Not only is he the founder of Everyday Spy, but he’s also a former covert CIA operative who lived and worked undercover. During this time, he learned to understand how the human mind works. He also learned how to dominate and overcome his fear. When he left the CIA in 2014 to have a family and start a business, he had to find a way to share those two elements with everyday people—which is how Everyday Spy got its start. Listen to this episode of How To Trade It for a look into what he learned as a spy that can change the way you trade.
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You’ll want to hear this episode if you are interested in...
- [1:52] A little bit about Andrew
- [3:20] Knowledge is valuable
- [7:53] How can a trader vet information?
- [12:05] Experience comes from action
- [14:15] How to read the headlines
- [17:04] The deception campaign
- [26:00] The concept of risk tolerance
- [31:57] Fear versus motivation
- [35:30] The vision for Everyday Spy
Knowledge is valuable—special knowledge is priceless
In the CIA, they have a triangle that they call the intel triangle. It starts with information at the top of the triangle. As you go around the triangle, you go from information to intelligence to experience and back to information.
You can simply replace “intelligence” on the triangle with “special knowledge.” Information is everywhere. Half of it’s wrong, half is right—but it’s distorted, inaccurate, or unproven. Information isn't valuable. What’s valuable is the intelligence that you get when you refine information into something tactical and purposeful.
You need to take all the available information and vet it. If someone tells you a restaurant is awesome, but they're the only ones who say anything, you can’t trust it. If a second person corroborates that the restaurant is awesome, you have a second data point. It’s a verification process.
Read both financial and diplomatic headlines
The average trader is just reading the financial headlines. But they should be following the diplomatic news as well. Trump brokered a deal to establish full diplomatic relations between Bahrain, Israel, and the UAE. It changed military dealings, trade deals, logistics, and supply channels. The only way you’d know to trust this information is to follow international/diplomatic news and financial news.
So then a trader must ask, who stands to profit from those deals? You don’t even have to do the research. Thousands of people have already done it for you. You just have to vet that the people doing the research are credible and connect the dots. It is open-source intelligence. It’s secret because no one else has put the puzzle pieces together yet.Why do you need to read both the financial and diplomatic headlines? @EverydaySpy shares his take in this episode of How To Trade It! #stocks #stock #trading #trader #StockMarket #Investing #DayTrading #StockPicks #strategy #knowledge Click To Tweet
The third part of the triangle = experience
Experience comes about when you take action. You have information and it’s become special knowledge. When you take action on special knowledge, you gain more information. Did your trade win? How much did it win? Did it take longer? Did it tank? You’re getting experience no one else is getting because you’re acting on information no one else saw. Andrew emphasizes that “The triangle becomes an engine—an endless engine of special knowledge, new experience, and advantage over everybody else.”
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Read between the headlines
Whether it’s financial news, industry news, or diplomatic news, you’re reading information from the media. You have to read between the headlines. What is the message that’s actually being shared? There’s a systematic process to read information. You have to consider why it’s being presented at all. There’s always an agenda. Sometimes it’s to read to buy something at the bottom of the page. Sometimes it’s to get you to click on a link. Maybe they just want to stir up fear and anger.
If you can identify the agenda, you can erase anything that has to do with the agenda. What’s left is high-value information. It’s one key idea and then several forms of distraction. Andrew jokes that conventional thinkers—when told they can’t trust the news—look at him like he’s crazy. The media is feeding you what they need to feed you to get you to do what they want you to do. But if you remove the agenda, you can see the special knowledge.What is a deception campaign? How can you learn to recognize a deception campaign? @EverydaySpy shares how in this episode of How To Trade It! #stocks #stock #trading #trader #StockMarket #Investing #DayTrading #StockPicks #strategy #knowledge… Click To Tweet
Learn to recognize a deception campaign
I believe that CNBC’s agenda is to manipulate stocks. This is known as a deception campaign. The intelligence world does this all the time—the finance world just borrowed it. There’s a framework that makes it predictable. Once you understand this, you can see through it and you know the outcome. The framework is the opportunity, the attack, and the reaction.
Every lie starts because there’s an opportunity. The people who see the opportunity want to take advantage of it and want other people to lose out. So they make up a lie. The attack happens when you fuel the fire that already exists.
Bill Ackerman got on CNBC at the beginning of the COVID pandemic and said that the world was ending and everyone was going to die. He created panic in the market and stocks had a major sell-off. He then scooped them up while they were low and made millions. He ran a deception campaign. He came up with a lie to take advantage of the opportunity, then attacked the people that were already afraid with more information that stoked their fear.
Whether it’s Russia trying to influence the US election campaign or China trying to influence African development—you name it, it’s all about the opportunity that drives the attack because someone is looking for an outcome to take advantage of.
You can learn to see the opportunity, the lie, and the attack. Why are they doing this? They want the stock prices to drop. Instead of being distracted, you can look for the reaction and opportunity. This strategy is at play in the US with national security, in foreign countries, in the intelligence sector, the finance sector—everywhere.
How does the concept of risk tolerance come into play? What about recognizing and overcoming your fears? Andrew shares more on these topics as well as the vision behind Everyday Spy. Don’t miss this special episode of the How To Trade It podcast!
Resources & People Mentioned
- Invest in yourself: Get access to Andrew’s Shadow Lesson Interviews from Andrew for 50% off
- BOOK: Principles by Ray Dalio
Connect with Andrew Bustamante
Connect With Casey Stubbs
- Website: https://caseystubbs.com
- YouTube: https://www.youtube.com/TradingStrategyGuides
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- Twitter: https://www.twitter.com/caseystubbs
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- LinkedIn: https://linkedin.com/in/caseystubbs
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Disclaimer: Trading carries a high level of risk, and may not be suitable for all investors. Before deciding to invest you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment. Therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.