Audio Length: 00:52:47

Since 2013, Tim Steenstrup has been a cross-border arbitrage trader at Conventus Capital. Though markets have been a part of his life going back to 1994; Tim’s been part of a brokerage firm in Japan, a hedge fund—which was featured in The Big Short movie, and a prominent New York trading firm.

As you’ll soon hear, we skim through Tim’s backstory and then spend a large part of this episode going into the mechanics of how a cross-border arbitrage strategy works. Tim does highlight, this strategy may be difficult to implement as a retail trader, but regardless, I think it’s valuable for you to hear about the various approaches of how professional traders trade…

Topics of discussion:

• Tim speaks about his attraction to risk taking, abandoning a would-be law career for a brokerage position, and becoming a trader—someone who calls the shots.
• The mechanics of cross-border arbitrage strategies; the three transactions which must occur, the inherent high risk, measuring moves and actual trade examples.
• How Tim’s gotten better at accepting losses and recovering, a reminder to take the bad with the good, and respecting how quickly the market can beat you.
• An overview of how Tim performs company research, and how he’s evolving to make the most of times when markets are out of favor with his main strategy.