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Real Vision: Finance & Investing

My Life in 4 Trades - Noel Smith Shares Lessons Learned, From Enron to the GFC

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.11.1K Ratings

🗓️ 23 July 2022

⏱️ 50 minutes

🧾️ Download transcript

Summary

Here’s a full-length episode from Real Vision's original series, My Life in 4 Trades - be sure to subscribe. Noel Smith has learned many hard lessons during his 25 years trading volatility, making markets, and managing risk. Now a managing partner and the chief investment officer of Convex Asset Management, Noel cut his teeth by trading Enron and losing big but turning it around and coming out of the Global Financial Crisis in the green. He joins Maggie Lake to share the wisdom he’s accrued along the way. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

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0:26.0

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0:56.0

Here's what's coming up on this edition of My Life in Four Trades.

1:26.0

Mark had not yet opened and I knew what we had on position wise, but at that point, you're thinking about your life and your position is like, who cares? If we blow out, we blow out.

1:38.0

Hi everyone and welcome to another edition of My Life in Four Trades. Joining me today is Noel Smith, the Chief Investment Officer for Convex AM. Enjoy the conversation.

1:50.0

Hi everyone, welcome to another edition of My Life in Four Trades. Joining me today is Noel Smith, the Chief Investment Officer for Convex AM.

2:02.0

A veteran options trader, his career span from the pits of the Chicago Board Options Exchange to being managing partner and CIO of the Prop Trading Firm, Third Millennium and Venture Capital, where he was responsible for providing seed funding for high-frequency trading firm Getco, which went on to become a major US market maker.

2:22.0

He's got a lot of experience that we're going to try to weigh on today. Hi Noel, welcome. Thanks for having me today.

2:29.0

It's great to have you. Before we jump into your trades, give us a little bit of background. Where did you go up? What were you like as a kid?

2:38.0

I'm from Chicago and I grew up knowing about the Board of Trade and the Options Exchange and I never really had anybody that was a contact there.

2:48.0

A lot of other people that I knew had a relative, a dad or whatever else that worked at the Merc or the Board of Trade. I was always aware of this thing. It's like growing up in Cupertino, you know about Apple.

2:59.0

Unless you know somebody that works at Apple, it's just this giant building down the street. So I'm from Chicago and that's my background.

3:07.0

There's just a lot of finance in the city at the time where I grew up and it was always just a very interesting thing to me.

3:14.0

Were you good at math and numbers? Did that kind of interest you? What were you like or what were you involved in as a child growing up?

3:25.0

So I've always had an act for science in math. I was a biochemistry major. My intention was to be a surgeon. I worked in a surgical ward. I worked in neuroscience research. I worked in subatomic nuclear physics and college.

3:36.0

I did a lot of sciences type stuff, but I did not work in finance. So when I first started, you know, I didn't know what time the stock market opened or closed. I didn't know what the NASDAQ was.

3:47.0

You know, name it. I didn't know it. And so I had to learn a lot of that stuff as an adult.

3:53.0

And I had some exposure to it in college, but my main focus was science and complicated stuff.

3:59.0

Yeah, I like how you just throw out subatomic nuclear. The rest of us are like, what?

4:05.0

So you know, buddy, a buddy of mine was working at Fermi Lab and that's actually what got me interested. So he took me on a tour.

4:12.0

You know, this is where we we bust atoms. I'm like, wow, this is really interesting. So that spurred me. He was older than me. So I had the luxury at that point to kind of, you know, take those that course material during college.

4:23.0

Yeah.

...

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