ข่าวสารตลาด & มุมมองเชิงลึก

Quinn Perrott ( Linkedin ) is the Co-Founder & General Manager of TRAction Fintech, a regulatory technology business. Quinn has been a long time operator in the Retail Forex space, whether it’s running leading businesses like City Index and AxiTrader, or deciding to create a business in the niche space of regulatory technology. He has a unique perspective as a long time operator, with his knowledge helping average traders to understand the market and industry participants to better understand their business.

This episode covers: Living in Cyprus Quinn’s path to Forex Starting TRAction Fintech What Quinn misses about the FX/CFD businesses New regulation from GFC How blockchain tech can impact reporting

Adam Taylor ( Linkedin ) is a Director of GO Markets London. Adam has a brilliant ability to see patterns, whether it’s playing Chess, or using Point & Figure Analysis to better understand the sentiment in the market. This chat was a great insight into what makes a GO Markets London Director tick, plus how things are looking within the UK.

This episode covers numerous topics, including: The game of Chess Moving from Scotland to Australia His progression within GO Markets The UK market, Brexit Risk management Fundamental & technical analysis - Transcript: Disclaimer: Go Markets is a derivatives broker and Jordan Michaelides is the managing director of Neuralle Media. All opinions expressed by Jordan and podcast guests are solely their own and do not reflect the opinions of Go Markets, an AFSL license holder. This podcast is for informational purposes only and should not be relied upon as a basis for financial decisions nor as an indication of future performance.

Clients of Go Markets may hold positions in the derivatives mentioned. A financial services guide and product disclosure statement for our products are available at the www.gomarkets.com website. Jordan Michaelides: In this episode we spoke with Adam Taylor.

Adam is a director of Go Markets and head of Go Markets UK. What I like about Adam is that he has a brilliant ability to see patterns, whether it's playing chess or using a point and figure analysis to better understand the sentiment in the market. During my own time at Go Markets, Adam was always the cool cucumber you look to when you wanted an opinion or topic settled, with a very, very useful skill set for someone previously tasked with the majority of risk management in the business.

This chat with Adam was a great insight into what makes a Go Markets director tick, plus how things are looking within the UK, particularly with Brexit happening at the same time. We covered numerous topics including chess, moving from Scotland to Australia, his progression within Go Markets, the UK market itself and what's happening with Brexit, or what should happen happen over the next few months, risk management, fundamental and technical analysis as well. If you enjoy this episode, do consider subscribing on your podcast app share with your friends.

Let's get into the episode with Adam. Adam, thanks for joining us. What’s the time over there, about 8am?

How’s the weather in good old London town? Adam Taylor: About 9am, and it is absolutely freezing. Everyone’s huddled together at the stations.

Jordan Michaelides: I love London personally. I know my partner absolutely hates it, but, there's something a bit kooky about London. I've always been a big fan of Sherlock Holmes, whenever I watch the Sherlock series from the BBC and I hear that introduction music, I just think of London and get that cool, spooky feeling.

I don't know why. But, enough of me rambling on about that First question for you, how good are you at chess? Adam Taylor: How good am I at chess.

I have been able to navigate my way around the chessboard. There is a danger of me telling you how good I am though Jordan, and the danger is either yourself or anyone listening probably wont want to play me. Jordan Michaelides: *laughs* Adam Taylor: It happens all the time.

It's very frustrating. Jordan Michaelides: That was the thing that I noticed what I was looking at your profile, I've worked for you for a few years and knew you liked chess and we spoke about it a few times, but I had no idea that you were a coach. How did you get into that space?

Adam Taylor: When I was at university in Brisbane, as any student knows you just try to try to make money where you can. I had several jobs at the time working behind a bar at a resort, those sort of things. I was lucky enough to notice a job advertisement for a chess coach on the gold coast and it basically involved traveling around schools and teaching groups of children how to improve the game and take them to tournaments and things.

It was fantastic because, I got a lot out of it. Jordan Michaelides: What a brilliant job to have at uni. Another interesting thing when I was looking at your profile, like you moved from Scotland, and you’ll have to fill us in at what age, but you moved out to the Gold Coast and I was just thinking what a shock in terms of the weather, right?

Adam Taylor: It was huge. This was back in 2000, I was about 15, 16 at the time. Coming from dreary, cold Scotland to the harsh summer of Queensland was a big shock.

Jordan Michaelides: Definitely. Why you guys came out here? Adam Taylor: My mother is a teacher and she always wanted to live in Australia, She got an opportunity to teach in Australia, so I moved with my mother and my two younger sisters.

It was very exciting times. Jordan Michaelides: We obviously get a lot of ponds that move out but I never hear… you obviously would see a lot of Scottish types that will move out because of the nicer weather, but it's one of those funny things where you moved from Scotland to the gold coast and that weather differential is huge. Which part of Scotland are you from?

Adam Taylor: I'm originally from Fife, which is on the east coast of Scotland. Jordan Michaelides: I've not been there. I know I've been to in Inverness, Edingurgh, Stirling, it's a great place.

I do love Scotland. Do you get up there much now that you're living out of London? Adam Taylor: Not as much as I'd like to, but it's close enough.

There are plans to do a lot more trips in the future. Jordan Michaelides: Now, thinking about that time during your childhood, I was curious with what you've done now, what did you think you're going to be when you were a kid? Adam Taylor: When I was a kid, I wanted to be a geologist.

I was very passionate about being a geologist. I was one of those kids that had a rock collection and my idea of a top day out was heading to the beach searching for fossils. I was such a nerd.

I think my saving grace was the fact that I was a half decent footballer, so my street cred was still intact. Jordan Michaelides: Where did this come from, do you think? What was the archetype that you had in your head?

Was it like the cliche David Attenborough, or did you have some other ideas in your head, do you remember reading a sort of geography books? I remember reading books, I was a real bookworm, and seeing how they'd show the layers of where the dinosaurs sit in the Earth's core and all that sort of stuff and I'd love looking at that, but I never sort of saw myself as someone who'd go find a few rocks. Do you know what I mean?

Adam Taylor: I know exactly what you mean. I think it all stemmed from my father. He sort of had an interest it in, a sort of a hobby, obviously when you're a young age you're very impressionable and that's how I got interested into it.

Jordan Michaelides: Speaking of your father, one thing we ask a lot of our guests, because I think it sort of illuminates a little bit about who they are, is what lessons they've learned from either of their parents. You may see that through your own personality or something that you use as a way to make decisions on a daily or weekly basis. Growing up and knowing who you are today, are there any particular principles that you've learned from your parents directly or indirectly?

Adam Taylor: That's a difficult question to answer. I think probably more so my grandfather, I think I learned a lot of life lessons through him. I remember him being very patient.

He was very doting on everyone, he was always interested in making sure everyone else was okay, keeping everyone connected and communicating. I think I get a lot from him. Parents, I think as a kid you learn by example and, I hope my parents aren't listening to this *laughs*, because I think indirectly I've learned what not to do.

Certain things growing up, I used to think, why did they make that decision? Why didn't they do this? And, you know, in fairness to them you can only work with the information you have the time.

Jordan Michaelides: You're a parent now as well, a very fresh parent, so you know how tough it can be and how it can be into the future as well. Adam Taylor: Exactly, but that's what excites me the most about being a new parent. I'm looking forward to trying to do those things for my own children going forward.

Jordan Michaelides: Will you teach your child chess, do you think? Adam Taylor: Of course, yeah. Jordan Michaelides: That was one of the things I loved to do with my dad when I was a kid, he would come home quite late and maybe once a week, me and my brother, one at a time would play my dad.

We had a lot of enjoyment with that because it was a real, real challenge because dad's so good, how do you beat dad? I think there was a turning point where we were 14 or something like that. That stuff is really enjoyable.

Adam Taylor: It's funny you should say that because that’s something my father taught me indirectly as well, playing chess, he was always a really good chess player. I would play him for several years as a kid growing up, like yourself in the evenings, on the weekends, and I would lose every single time. Every single time.

It taught me persistence, every time I'm learning something new, I'm refining the process, until I got to about the age of 16 and I started beating him. Jordan Michaelides: I was talking to my partner about this today. In an age where a lot of kids are given participation awards, I think having real competitive support, whether it's chess, whether it's martial arts or soccer or whatever, I think that stuff is really, really useful.

As you said, it teaches you persistence, it teaches you to be competitive as well as patient. Adam Taylor: For a kid it’s very hard to play something while losing constantly and keep motivated, so yeah, it's a good lesson. Jordan Michaelides: I was looking at your early career; you were initially a chess coach then had a few different jobs before you eventually fell into the word of Forex and CFDs.

How did you get into this? Adam Taylor: I was studying architecture in Brisbane at the time but I was a bit directionless. I was doing architecture, but not really knowing why.

I guess I'd always had an interest in historical buildings and had some skills that were useful for that career. It just so happened that at the time I stumbled across a book by Robert Kiyosaki called Rich Dad Poor Dad, and basically I'd always avoided finance, I'd never been interested in numbers or mathematics, it was just an area that I wasn't interested in. What ended up happening was I was going to the library for architecture books and I'd come out with 20 business finance books and became a sponge.

Jordan Michaelides: And those books, were they just personal finance books, like Rich Dad Poor Dad, or were they varied, investing, business management etc? Do you remember some of the names of those books at all? Adam Taylor: Not off the top of my head but it was it was a quite a range of finance books.

I just couldn't believe that I'd ignored this space for so long. I guess no one in my family was financially literate. N one had taught me any of these areas of knowledge.

I felt like I missed out and I just wanted to catch up. I got really interested after seeing a couple of stock charts and thought ‘what’s this’, the more I found out it just became like a giant chess board. I saw the markets as a place with strengths and weaknesses and combinations, you know, playing out moves and that's what got me hooked.

Jordan Michaelides: You're very technical, you like looking for patterns and it's always been sort of a feather in your cap, if that makes sense. It’s one of those areas that you're really good at. I know you've studied to become, I don't know if you're still doing it now, if you finished it, but certified financial technician, and we'll get into more about technical analysis but that has been a really interesting observation from my perspective, how maybe that excitement for chess and looking for patterns and pattern recognition is what piqued your interest in this area as well.

Now, I know you worked your way up in Go Markets in the business from technical analysts all the way up to doing a bit of risk management and now running the UK business as director. How have you seen your progression over that period of time? Adam Taylor: I've actually seen it as quite a natural progression.

Chris Gore, our CEO, pointed out in the previous podcast Go Markets is quite a unique place for employment. A lot of employees are encouraged to try different things in play to the individual strengths. And I've been fortunate enough to move between the different departments get a real good grounding of how everything works, but I always had an eye on the trading desk, obviously.

I started off in sales, moved to support, new accounts, and as a director now I’m able to understand each department's role much more. Jordan Michaelides: I think you're definitely right. They'll allow you to float through two different teams, I definitely think that that skill set of sort of a Jack of all trades but specialists in that technical aspect has definitely helped you.

Now, on the UK, obviously you're based there in London as we discussed, the UK market is super fascinating, particularly because of Brexit, which I think is coming up in March this year, but also since the GFC, the arrival of FinTech companies or tech companies that really pushing the finance system over there has been huge. I'm curious as to your time now, you've had about two years since 2016 in London, what have you learned so far? What have been the most interesting observations being based in the city?

Adam Taylor: For starters is totally different from Melbourne and Australia obviously. There's so much more going on this side of the world. Something that I've learned, is you've got to try and remain flexible to potential changes and just take the time to do things properly.

Avoid looking for shortcuts, especially when it comes to sort of regulatory guidelines, it's just a constant state of refinement. You know, as technology progresses, all these different systems have to be monitored and a lot of due diligence codes into the process. It's constantly evolving, you've just got to take your time.

Jordan Michaelides: Were you there during the Brexit vote as well? Adam Taylor: Ah, Brexit, my favorite word. We have a running joke in the office that when I was in Australia I didn't vote during the Brexit referendum rather, and that I have no right to complain, basically, but my response every time is that, well, look, I've come back to face some music, I’m here *laughs*.

I think Brexit is a positive thing longer term. It might take several years but once we establish more deals in different countries like the US, China, Canada and things, I think things will largely improve. Jordan Michaelides: I remember the day of the vote thinking, Jesus, what have they done?

But now I think that migration element through the Syrian refugees really brought all of this to a head. People have been focused on that, I think if you look at it from a different perspective and, you know, here in Australia being involved in the FinTech space, we've had the mayor of the city of London came out with other dignitaries from the UK and it's very rare that he would make a visit to Australia, and you get this sense that… there's always a funny bit about the UKs foreign policy for the EU being totally focused on making it disconnected and breaking it up and all that sort of stuff to keep everyone fighting in between each other and not worried about the UK itself. There's that funny element where people think that Brexit is just a way to bring down the European union and make everyone squabble amongst each other, but honestly I can see the pivot towards Asia and I think that's the big thing for me, the number one free trade deal that they've highlighted these dignitaries that came out last year is the Australian free trade deal and it's basically already there.

As soon as Brexit is done in March, then both governments will sign a free trade deal, which basically allows the UK to backdoor into Asia. That's been the most interesting thing from my perspective. Obviously there's the short term ramifications, but I think in the long-term when the EU is, well, what is the EU growing at each year?

Not even 1% as a block? You know, birth rates are down, relying on immigration which causes political angst, I can totally see why it's a smart deal now in the long term, but we're saying that we need hindsight. Five years from now we'll see what happens.

One of the other elements of your job or has been part of your job is this sort of trading risk management. I know when I left the business you were extensively managing the risk for the firm, I remember the days of us in a very basic way looking at our exposure and you turned that into a bit of an art form where the business was managing it a lot more closely. Based on your experience, whether it's profiling, client trading, managing liquidity provider positions or exposures, what lessons you could impart to novices about how you view risk and exposure.

Adam Taylor: I'm sure you'd agree, seeing how everything operates on the back end of these platforms, it's kind of like peeking behind the curtain, the wizard of Oz, there's so much going on, so many layers to this in terms of technology, liquidity providers and everything, which makes the trading side work. I think that when it comes to novice traders, I think we have to dispel this notion of when you're sitting in front of the platform there's someone on the other side who's pitted against you because it's just not true. If a trade goes wrong for a novice, it's quite common for someone to get frustrated and think that it's the broker or it's technology or these sorts of scenarios.

I think if the novice understood that most brokers, more particularly us, were interested in longevity of a client. You know, we want to have a relationship for several years, we want to do everything to help you to continue trading for a long period of time. In terms of risk management, everything's set up so that clients can get the best possible price and just make everything as smooth as possible.

I think it’s just getting it into the consciousness that is, it's a bigger picture. Jordan Michaelides: Also a lot of this stuff is on the individual, it sounds like you're saying that a lot of this is on the individual in a way. You mentioned before about the longevity of a client.

In this sort of business, in the retail Forex business, you want the client to stay around for a long time because the only money you're making off their trade is either a commission or a spread, generally in this business model. Some people will try and make money off their book, but by and large, most retail brokers seem to just net that exposure off with a liquidity provider as you said. So that's ne of the major elements of running this business is dealing with liquidity providers.

I think that's a good point, that it’s getting out of this mindset that there's someone there trying to make you do bad and maybe it's more on you, your own processes and also how you think about trading. That's a good point. Adam Taylor: Yeah.

You’re part of a bigger picture and, it's taken responsibility for your trade, seeing how you can improve yourself, asking certain questions, you know, am I trading at illiquid times or do I trade during a major announcements Basically building your own plan. Jordan Michaelides: Now, we're getting to the end, so I need to ask one more key question around your career. And that to me is this analysis element, this fundamental versus technical analysis.

I know analysis has been a core element of your career. We know speaking before about chess and its impact and maybe, I believe, that impacted your interest in looking for patterns. From your perspective, one, what is the differences between fundamental and technical analysis and two, why do you think you were so drawn into technical analysis over fundamental?

Adam Taylor: Well firstly, obviously fundamental is more news driven. You’re analyzing the business, the core, elements of that business and what makes it tick. Whereas technical analysis is more price driven, price action, on the charts and that sort of thing.

In terms of where the analytical insight came from, I've always been a very visual person and it's just seeing patterns and pattern recognition, That's what drew me to a technical analysis. Jordan Michaelides: It’s such a fascinating area. I remember for years I didn't really think much of technical analysis, I was always more of a fundamentals person cause I liked hearing about the story.

It's funny how both you and I have these different traits and therefore that impacted the area of preference. I remember reading a really interesting peace called ‘Support For Resistance’ by Carol Ostler when she was working at the federal reserve bank of New York. She was speaking about how technical analysis is applicable or where it is applicable and particularly in foreign exchange, Sort of like a peer reviewed piece of research, which is super interesting.

I know you've become well known, I saw this on a few comments and blog posts here and there when I was searching your name that people had commented on your point and figure analysis. It's like you’re the point and figure guy. Where did that come from?

Specifically point and figure analysis. Adam Taylor: I think every technical analysts, and people within the trading industry, you're drawn towards some things. What I like about point and figure is, well, first off it was one of the original areas of technical analysis that was developed back in the trading pits,, in the early 1920s, if not before then.

You've got these people without any technology whatsoever scribbling down on bits of paper and trying to come up with a system that they could work with. And this was one which developed over the years. What I like about it is it's simplicity.

You're removing the time element for starters, it's purely based on supply and demand, which as we know that’s what the markets are all about. You're seeing psychological levels of where price is looking to go. Jordan Michaelides: I'm just looking on Wikipedia now… the technique is over a hundred years old, 1898.

Adam Taylor: It's become like a lost art in a sense. It's not something that's developed with the technology. I think it's kind of been forgotten about, I'm trying to get a bit of a resurgence in the area.

Jordan Michaelides: This reminds me of making a certain type of steel that was made somewhere in Iran back in the day, and every now and then these sort of artifacts pop up but they don't know how to forge this steel anymore, which is super interesting. I totally agree. I think things sometimes get lost.

Warren Buffet and Charlie Munger have spoken a lot about how in this day and age with computers, people are often looking for these crazy, machine learning driven ways of mathematically calculating things when oftentimes there's just a simple process involved that takes patience. We've got to jump into some short, fast questions to finish off. I know you've had a new bub, maybe give us an idea of what your current morning and evening routine looks like.

Adam Taylor: I’m not even sure what it looks like at the moment to be honest. I'm literally changing nappies and trying to fit in a bit of sleep here and there, give my wife a bit of a break. Ask me again in about six months and we'll see.

Jordan Michaelides: If you had to gift a book to the audience, what would be the one book that's had the most impact on you that you'd give to them? Adam Taylor: I would have to see ‘Think And Grow Rich’ by Napoleon Hill. Jordan Michaelides: I think that's a bit of a classic, right?

Napoleon Hill. Good choice. Now, best purchase and under $200.

Can you think of one? Adam Taylor: That’s easy, because it's been very recent. It's basically this device which makes bottles for babies, does the right milk temperature and everything, takes the thought right out of it.

At 2am in the morning it’s a godsend. Jordan Michaelides: Last question for you before we finish, if you could have a billboard anywhere in the world, where would it be, first of all, location's important what do you think it would say? What do you think you would have on it?

Adam Taylor: I think I would have a billboard which says ‘keys, phone and wallet’ and I'd put it right outside my house just near the front door. That's what I do. I’m always terrible, I'm always missing one of them, now and again.

I’m sure my wife would agree with that. Jordan Michaelides: Adam, we've just passed 31 minutes. Thanks for doing this with us.

I know you've had an exciting few months. Thank you so much for joining us. Adam Taylor: Thank you Jordan.

Cheers.

Sophie Gerber ( Linkedin ) is a leader in the space of legal & compliance in the finance industry within Australia, publishing regularly across the industry. The breadth of both business, whether it’s Sophie Grace or TRAction FinTech, clearly highlight the array of Sophie’s knowledge. Her blog posts are quite brilliant in their ability to sort through the weeds that must exist within this space.

This episode covers numerous topics, including: Starting Sophie Grace Common mistakes with new financial businesses The Royal Commission How the industry could change for the better Her role at TRAction FinTech

Karen Wong ( Linkedin ) is a private FX & Equities Trader, Sydney Chapter Secretary of the Australian Technical Analysts Association and technical contributor for Guppytraders.com. Karen’s entire career has been focused on private trading primarily across equity markets. Her technical analysis is regularly used to help the community pursue the development of this speciality, particularly with her engagement in the Sydney ATAA chapter.

This edition uncovers the perspective of private traders: Her background and how she got into trading Her trading principles, methods, and indicators Fundamental and technical analysis How to utilise technical analysis and its key principles

Andrea Marani ( Linkedin ) is the CEO of OpenMarkets and longtime operator in the financial services space. A South African at heart, the now Aussie financial operator has many runs on the board with organisations like Investec, Rabobank, Shaw & Partners, plus Global Trader. OpenMarkets is a Digital Trading Platform that provides clients with direct access to markets via a range of digital technologies.

This chat with Andrea offers an interesting look into his background and wealth of experience across financial markets. We covered numerous topics, including: What he misses about South Africa and why he moved to Australia Early memories of making wine Highlights of his career The impact of technology on financial markets Open Markets and its focus New products he’s excited about

Khim Khor ( Linkedin ) is GO Markets’ COO and Executive Director. He started out as a Sales Manager for the Asia business, when this demographic was just opening up for the CFD/Forex industry. Five years later he stands as COO and is an integral part of the GO Markets team with a unique and innovative perspective on Asia.

As a lifelong student of Economics, Khim has always had a penchant for understanding how markets work. In this episode we’ll cover: His time and role at GO Markets Growing up in Malaysia, and sambals The Asian market Trading & gambling in Asia compared to Australia Asian investor perspective USA & China trade relations What sitcom best resembles GO Markets office - Transcript Disclaimer: Go Markets is a derivatives broker and Jordan Michaelides is the managing director of Neuralle Media. All opinions expressed by Jordan and podcast guests are solely their own and do not reflect the opinions of Go Markets, an AFSL license holder.

This podcast is for informational purposes only and should not be relied upon as a basis for financial decisions nor as an indication of future performance. Clients of Go Markets may hold positions in the derivatives mentioned. A financial services guide and product disclosure statement for our products are available at the www.gomarkets.com website.

Jordan Michaelides: In this episode we spoke with Kim Khor. Kim is Go Markets COO and Executive Director. He started out as a sales manager for the Asia business just when this new demographic was opening up for the most of the CFD and Forex industry.

Fast forward five years, he stands as CEO and an integral part of the Go Markets with a unique perspective on Asia. A lifelong student of economics, Kim has always had a pension for understanding how markets work and, of course, his notorious obsession with sambal. This is a great episode where we cover, of course, sambal and growing up in Malaysia, his time and role at Go Markets, the Asia market itself, trading and gambling in Asia compared to Australia, the Asian investor perspective, US versus China Trade Wars and Relations, and what sitcom best resembles the Go markets office.

If you enjoyed this episode, subscribe on your podcast app and consider sharing with one of your friends. With that all being said, let's get into the episode with Khim Khor. Kim, thank you for joining me on this nice sunny Friday.

First question for you. How spicy do you like your sambal? Khim Khor: *laughs* Hot and spicy, of course.

Jordan Michaelides: Do you know it was you that introduced me to sambal? I'd never had sambal before and I remember back in the day when I worked at Go Markets, I used to always buy in the morning for a snack and one day I saw you having your sambal and thought I'm going to try this on my sushi, so I was had sushi and sambal. Khim Khor: Well, you have a good taste.

Back then when I brought a sambar to office, a lot of my colleagues actually complained about the terrible smell. Jordan Michaelides: What was the other thing used to bring in? They were like little fried prawns.

Khim Khor: Fried prawns? Like a tempura? Oh, they were dried shrimp.

They’re very popular in Malaysia and are used in all different kinds of cooking, particularly sambal. Jordan Michaelides: In Sambal it's amazing. Whereabouts of Malaysia did you grow up?

Khim Khor: Kuala Lumpur, but I was born in Penang, the island. Malaysia used to be colonized by the British, they used to have Air Force there, and Australia used to have a Navy base on Penang at a place called Butterworth. Jordan Michaelides: My boss is from Penang, he was saying that a lot of people in pain don't really speak Chinese or Malay, they all speak English.

That's the common language. Khim Khor: Yes, that's correct. Jordan Michaelides: What's the common language in Malaysia, do most people speak Malay or Chinese?

Khim Khor: The official national language is Malay, but Malaysia consists of three major races, so if you're Chinese you'll be speaking Mandarin, a dialogue like hokkien which is popular in Denang. Indian’s mostly speak Tamel because they are from South India and of course Malaysians will speak Malay. Jordan Michaelides: I've always been fascinated with Malaysia.

I've still yet to go, I want to get to Penang by the end of next year. That’d be great. Now, many people internally would know you as the friendly neighborhood, Malaysian, always bringing in your amazing delights to the office.

You were at the firm at the same time that I started. You've stuck around, worked your way all the way up to an Executive Director and COO. You've got an interesting background, looking at your LinkedIn profile, you studied it in Tasmania, right?

Khim Khor: Correct, it was back in 2000 that I started there. Jordan Michaelides: Okay. So, you did economics, honors as well, workeds as a wealth manager, project director, strategic consultant; What was the catalyst that drew you into Forex?

Khim Khor: I would say back then the motivation was money, when you're young. You’ll see from my background I graduated from the University Of Tasmania, and my first job is was a wealth planner, a financial planner. I did really well back then and in fact decided to a job opportunity from RBA.

Jordan Michaelides: Really? What were you going to be doing there? Khim Khor: How it worked back then with my university was if you graduated with first class honors you will be automatically given a job with the RBA.

Well paid as well, but for certain reasons I didn't take up that opportunity. I thought that will be a routine job, running statistics and things like that so it could be a bit boring for me. Jordan Michaelides: Who knows, you could have been on the board of governors *both laugh* Khim Khor: So, I worked for Genesis back then, which is under Challenger, I believe, Kerry Packer's group, for two and a half years and did really well, so, everyone got a pay out, my boss retired and I decided to do something totally different to my background, that was modular housing.

Jordan Michaelides: How did that come about? Khim Khor: That was back in 2005-2006 when Australia was at the beginning of the mining boom, so the concept of fly-in-fly-out work created some of opportunity with mining workers living in a quite bad conditions around the mining areas. They we're spending a lot of money hiring private planes in and out so the solution was to build an energy efficient seven star like hotel, like a portable modular concept, which we’d pitch to all the big mining companies.

Jordan Michaelides: How did that go? Khim Khor: It went pretty well, we were on the verge of finishing the prototype and due diligence with one of the biggest iron ore mining companies in Australia. Some personal things fell through because of the business partner.

So, it didn't work out but not because product was no good, just because in business these things happen. Jordan Michaelides: Yeah, you can just have a whole bunch of things happen at once and it just makes it impossible to continue. When you came to study here, did you intend to stay in Australia?

Was your original thinking, I'm just going to go back home and get some sick job because I've got this degree in Australia? Khim Khor: Actually my initial intention when starting the University was Canada, Ontario. That’s where I went to college.

When I tried to apply for university, I apply about six or seven around the UK, Canada and Australia and the University Of Tasmania happened to be the first university to recruit me. Jordan Michaelides: What do you miss the most about home when you think about it. I know you get back every, every now.

Khim Khor: Food and family, I suppose. Jordan Michaelides: In Malaysia it's always the classic thing, isn't it? Food and family, but life's pretty good here I think.

When you were growing up, thinking about your family, are there any particular lessons that you learned or you hold with you today that either of your parents imparted on you, maybe they did that directly or indirectly through you seeing it? Khim Khor: I think my grandpa and my father have a big influence. Okay.

They always teach me when you want to do things successfully, you have to be extremely focused, because the power focus leads to great success. The reason being, if you’re able to focus on one thing and do it right, the rest will just follow suit. Jordan Michaelides: I was saying before, you've worked your way to the near top.

I'm curious and I think most of the audience would be curious about the role of, essentially, head of operations. Initially you started here as a sales manager and worked your way up to VP of Asia which we'll get into Asia in a moment,and now executive director and COO, how did this whole opportunity arise? How do you view it in hindsight, your time starting here?

Khim Khor Back to what I just mentioned, focus is what lead to where I am today. I started as a sales manager in Go Markets, specifically targeting Australia clientele and throughout the process, I suppose, some luck and some fate, Go Markets decided to break into the Chinese market. Because of my background, I do speak other languages, so that gives me certain opportunity to perform.

Jordan Michaelides: I remember initially, you were obviously pitching to clients when you first started in English and then all of a sudden we get a few random clients who'd say, Chinese, Chinese, on the phone and we just started palming them off to you, and it just grew and grew and grew. I guess that's where the pivot to Asia came for the business, I think. I'm just thinking about the role itself, being CEO, what does that actually mean for a company like Go Markets?

Khim Khor: The rule compared to sales back then has changed significantly. Back then my focus was all about conversions of sales. Be that from Asia, Southeast Asia, Australia, the focus was to provide the best user experience for my client, try to answer questions as professionally as possible.

The focus now is altogether different because now, on a management perspective, the daily routine will be more about problem solving and managing people. Jordan Michaelides: The remit for operations, I'm just thinking about the structure of the business, you've got the CEO, compliance team, trading team, operations. Do you oversee all of those people beneath you and speak to the CEO or how does that work?

How is everything split up in the business? Khim Khor: At the moment I classify us as a small-medium enterprise… Jordan Michaelides: But it’s pretty big for the industry I think, I feel. Khim Khor: It depends who we compare it with, like, I compare us to IG, CMC, those listed companies, we are small.

Jordan Michaelides: A company like a Pepperstone is of this going to be bigger, but you know, you guys are just that level just below them, I think. Khim Khor: Yeah, that's true. In terms of organization structure it will be simpler.

I mean, we have upper management and basically the staff. We don't have so-called middle management. From a communication perspective, decision-making perspective, we are more flexible, which is also a strength.

Jordan Michaelides: Yeah, being agile is always a good strength. What do you think is the most crucial aspect of your role? What is the one thing that is most important?

Khim Khor: Problem solving. That's absolutely what I've done in the last two years. Jordan Michaelides: Now getting into Asia, I said before you were VP of Asia, is there someone who's in charge of that market now and you split those up or how does that work?

Khim Khor: Back then we had a slightly different shareholder structure, they introduced the Chinese market by hiring a Western face which is a good strategy because Asia tends to have more confidence if your company has a white face, we have a guy named Adam Bevan who used to run the China business. I work alongside and help him because I can’t relocate into China as my family's all based in Melbourne. Then for personal reasons the head of China decided not to proceed further, and I was given an offer to take over the whole Chinese business.

Jordan Michaelides: So, is there anyone who's in charge of Asia Pacific or anything like that now? Khim Khor: In China we have a functional team, when I say functional I mean from operational perspective, they can work independently, we have about 28 staff in China, and six staff in Taiwan. The majority of the Chinese business is handled by the Chinese team, so my role is overseeing if they have issues or problems that they require assistance with then I step up and help them.

Jordan Michaelides: I had no idea that there was a whole Chinese team. Are they remote workers or… Khim Khor: We call it a third party service provider because in China the regulation doesn't allow you to do any sales activity directly. Jordan Michaelides: I guess that's why so many people go and open offices in places like Hong Kong or Singapore.

When I left Go Markets back in 2013, things were starting to pivot towards Asia, you were saying Adam Bevin was starting to grow that part of the business. How do you think it's changed the company? For example, what's the percentage of clients now for Go Markets in China, Asia and the rest of the world in comparison.

Khim Khor: I think now it’s around 50/50, 50% is Asia, not just China but Southeast Asia as well. Jordan Michaelides: In Asia, I think there's about 1 million millionaire sin China alone, so there's a lot of wealth that's been created in Asia. Based on your perspective, you've had your time with both types of clients.

How is the mindset different from Asian and Chinese investors or traders to locals here in Australia? Khim Khor: The Chinese, I believe in their blood are more speculative than Westerners, I think that can be proven by just visiting and casino in the world, you can see the high ratio everywhere because they like a punt. Jordan Michaelides: is that cultural thing or a historical thing?

I always thought it was because China and some of these other countries have been poor for so long, or communist in some way, now they've got all this wealth they're wanting to live the best life that they possibly can and that's what they love to do. Gambling is a major thing for Confucian culture, I think there's an element where it’s almost like you'd like to lose the money. Is that true?

Khim Khor: I don't think anyone likes to lose the money, I think the philosophy behind why China tends to have such behaviour is they tend to speculate more than westerners. It’s from historical culture, one of the reasons you just mentioned, they might have been on a poor side for long time and when a little bit of wealth becomes available they tend to leverage that and they're happy to take that risk. That's why I say it’s in their blood, it’s who they are.

Jordan Michaelides: So when you say they're more speculative, what do you mean by that? Are they willing to put in higher hands in different commodities or CFDs or are they just more aggressive? Khim Khor: More aggressive.

Their vision is, if I can use $100 and take a punt overnight I could potentially make 1000, unlike Austrian traders. You can see from the historical trends, we call it a life cycle of a trader, meaning that average trader in the leverage, Forex or margin derivative perspective, the life cycle of Asian trader tend to be much shorter. Interesting.

Jordan Michaelides: Really? So they get in and out and they're done with it. Khim Khor: Yes.

They either double it or they lose it. That’s the nature of it at the moment. Let’s talk about China alone for a minute, china only been prosperous since 80s, so the wealth effect in China is not driven by financials, it’s been driven by property the last 10 years.

If you’re talking about wealth generated in the last 10 years, property is about 10 times bigger than the stock market. Jordan Michaelides: Prices in Shanghai and Beijing are just out of control. Khim Khor: Right, it’s out of control.

But having said that, you also need to look at how China has been printing money the last 10 years. If you look at the stats, they actually print 10 times more than America. Jordan Michaelides: I know they do that to peg their currency, but I didn't know it was about 10 times more.

We're in a really interesting stage at the moment of the lifecycle of Asian investors. China's here to stay clearly, it’s the superpower with America, at least locally. We've gone through this whole stage, I think in the last two years where everyone's been paranoid about Chinese investors buying real estate and other assets.

I think it's been shown now that Indian investors are starting to actually overtake Chinese investors just because it's, we're going through that cycle. Where do you see the Asian investor mindset going over the next few years? What are they saying to you?

Are they still interested in Forex and real estate and stuff like that? Or is it something else entirely? Khim Khor: From the Asian investor perspective, a leverage product, like what we ofter at Go Markets will never die, as long as there are Chinese, they will keep doing it.

The differences here is the amount of money they willing to invest will be co-related to their wealth effect. I give you one example. Just now you were talking about the average price of apartments in Shanghai, Beijing and Shenzhen.

They are selling at average of approximately hundred thousand RMB per square meter, which is about 20 to 30,000 AUD. So, they say I'll open an account with Go Markets, if they only spend 0.1% to test it out that's not a lot of their wealth and they can afford to lose it. But in China, the differences it makes to the world is because of the population.

You have 1.6 billion roughly, Shanghai’s population alone is nearly 30 million. You look at the numbers themselves, they’re very powerful. That's why you see for the last four or five years Forex brokers, nearly everyone now has huge exposure in the Chinese market, which is also a huge risk.

Jordan Michaelides: It's gonna be very interesting, particulary because a lot of people talk about the trade war at the moment. That's a big thing. Khim Khor: Indeed.

I suppose it’s flexing of muscles between the two big players. Jordan Michaelides: What position have you built so far from that? Have you just been observing what's going on?

A lot of the talk at the moment is that the US stock market is overvalued and flushed after 10 years of quantitative easing and China's in a weird spot because they've had to export a lot of labor and construction to keep their economy booming, particularly with the one belt one road initiative. Where do you sit on that at the moment? The China US dynamic.

Khim Khor: If Trump is re-elected in the midterm election in November. My personal opinion… Trump is a businessman or businessman / politicians, if you look at his style of how he conducting business and relate it to politics, I think they are highly correlated. At the end of the game, I don't think that he will try to create a situation to put China in a huge losing position.

He's a good manipulator, he knows how to play his game really well. Let's say this particular trade war is creating a lot of uncertainty and volatility, which financial markets love. If you ask me to classify who is the best trader in the world, I say Trump.

Jordan Michaelides: I completely agree with you, he's a very good persuasion artist. That's his thing, he's a negotiator and he uses this and then all of a sudden he comes out of the blue, like with Xi Jinping and says, let's strike a deal or something like that. And that will calm marks markets down.

That's where you think it's potentially going to go? Khim Khor: I think, if Donald Trump wins the midterms he’s got another four years then he's done. He got 4 years left to fight his war to make American great again.

But China is different, he can just change the party structure and stay permanently, effectively we can call him an emperor. He's not short on money, he's not short on time. He might say, you know what, you’ve done a good job, Trump.

No problem. Bye! *both laugh* Jordan Michaelides: I never really considered that. from my own podcast we interviewed a geopolitical strategists who works at Australian national university, he’s used and respected by government when it comes to the Communist Party of China, and he was saying no one really grasp the reality of what he's done. He's effectively made himself a dictator.

He's completely got all the different areas of the party under control and he can stay there until he's bored or he wants to retire or he dies. And the Chinese have a very longterm mindset simply because their culture has existed for so long. You see a lot of articles now from the government political machine where they talk about the fact that we've got ages.

You've got to slowly, slowly chip away at things and gradually, gradually build up years. The salami strategies. Khim Khor: That's correct.

In China it's quite a unique political situations, in particular, if you look at the last 5,000 years of Chinese history, since the early twenties when China community's party was a formed, compared to the historic dynasties, this particular part has existed for less than a hundred years. When President Xi Jingping changed the rules structure and allowed him to be in a position indefinitely, that drew a lot of criticism, seeing that the China is going backwards because China should be moving forward to become liberal, to become democratic. I once had a constructive argument with a professor from Melbourne university, I asked him a question… Assume that you have a family with one kid, of course you can be more agile, more flexible talking to your kids about right and wrong, this and that.

If you have a family with 15 or 20 kids you need certain rules, policy, house rules, right?. That is a huge difference. So yes, democracy is good, but I wouldn’t say communism is bad.

I tend to be neutral in a way that you have to look at the circumstances. Jordan Michaelides: I completely agree. I've been to Japan twice in the last 18 months and everyone loves the Japanese culture, but it can also be debilitating for people who live there.

People come back and say, Oh, the trains are so good, everything's so clean, blah, blah, blah. I think that, the differences between monocultures like Japan and multi-cultures like ours. They all have their pros and cons.

It depends on where you want to stand to look at things. We haven’t got much longer left, so some short, fast questions for you to wrap up and give the audience some perspective. I’ve asked every guest so far since, if you were to choose a sitcom, what sitcom best reflects the Go Markets office, what would it be?

Khim Khor: Honestly, I haven't watched sitcom for long, not since friends? Jordan Michaelides: A lot of people have said the British version of The Office, but I don't know, I still can't put my finger on it that's why I want to hear from everyone else. What is your morning routine?

Khim Khor: My morning routine, a coffee and then check through my mailbox. Problem solving all day, then back home. Very boring *laughs*.

Jordan Michaelides: What does your evening look like? Khim Khor: Go home, relax, watch some movies. See the kids.

Jordan Michaelides: If you had to name your best purchase with the most positive impact under $200? Khim Khor: Books. The latest one I bought is How Not to Be Wrong, by Jordan Ellenberg.

It’s about the power of mathematical thinking, about decision making based on mathematics. Jordan Michaelides: Do you read regularly? Khim Khor: I used to force myself to read at least seven books a year, since I've become COO the only time I have time to read is on a plane.

I do fly quite frequently, so try to complete my target of seven, but this year I'm lagging behind. Jordan Michaelides: Favorite documentaries or movies? Khim Khor: The Big Shot, that is a brilliant film.

Jordan Michaelides: If you could have a billboard anywhere in Australia, where would it be? And what would it say? Khim Khor: Hamilton Island, and it would say “life is simple, be happy”.

Jordan Michaelides: We've hit our time. Thank you so much. It's been a pleasure having you Khim.

Khim Khor: Thanks Jordan.