Building a Trading Community: Q&A With Andrew Keene of AlphaShark Trading

First of all, how is business these days?

Business could not be any better. We have doubled our number of team members in the last year; we have also increased our revenues by 25 percent year-over-year and more than 1000 percent in just 4 years. We are always coming up with new products and subscriptions to grow our subscriber base, which is currently about 1000 people monthly.

What led you to start your own business?

After a very successful trading career at the Chicago Board Options Exchange (CBOE), I knew it was my time to teach others ways to be as successful as I was on the floor. In fact, 90 percent of everyone who trades loses money, and the average career span of an active retail trading account is only 18 months. I wanted to teach others the proper way to set up risk versus reward set-ups, and to avoid the mistakes and pitfalls that keep non-professional traders from being consistently successful.

What sources did you use for startup capital?

I was very fortunate to have made a lot of money over my 10-year floor trading career to start my business. Most young traders spent their money on boats, cars, and houses; my parents taught me the value of a dollar, so I saved most of the money that I made instead of spending it. This became the startup capital for my business.

What do you think is your biggest business strength?

One of my biggest strengths is that I am able to put my ego aside and realize that I need to market to traders and customers who have varying skill levels. Because my customers want explanations and education, I had to tweak my trading style accordingly--I can't trade like I run the world anymore, and that's OK with me.

What do you enjoy most about owning your own business?

I would say the two main things are that I am the only one to blame if things go right or wrong, and that I am able to choose my own hours. When I make money in the business, I reap the rewards and feel great about it. Likewise, when I spend thousands of dollars on a project that might not pan out, I am the only one to blame. My successes and failures are my own. I also love making my own schedule as most traders do. If I am having a bad day, often times I will head to the gym for a couple hours, but then pick up three hours of work after the sun goes down. The flexibility is great for me.

What’s your least favorite part of running a business?

I have to be a leader day in and day out, and sometimes I just want to turn it off. My team works around the clock, and it can be difficult to always be positive and motivate them when I am not feeling so positive myself. Motivation and positivity are paramount to running a successful business.

What do you think are important entrepreneurial skills to have?

There are so many entrepreneurial skills that someone must possess. The biggest one in my opinion is not being afraid to fail. Just like Wayne Gretzky said, "You miss 100 percent of the shots you don’t take." Every great leader has failed so many times, but that is what makes them succeed. If I did not fail numerous times, then I would not be where I am today.

What are some challenges you’ve faced in business and how did you overcome them?

I have been blackmailed, threatened to be sued, taken advantage of financially by good friends, and more. The way to overcome these kinds of challenges, in my opinion, is to not be too quick to trust, conduct background checks, and have a good vetting process in place for potential employees and business partners.

What do you wish you’d known before you started out?

I wish someone would have told me how much work it was going to take to start my own company. During the first nine months of starting my company, I was working 12 to 15 hours a day, seven days a week. I knew it would take hard work, and I was prepared for that, but working 100-hour workweeks for nine months took a toll on me.

What is the smartest move you have made with your business so far?

Just like an NBA basketball team, you are only as good as your bench and role players. I have been so lucky to surround myself with great people and people I trust. I work remotely from San Diego; I would never have been able to do that if it were not for my COO, John Voorheis, and my Vice President, James Ramelli.

How do you find new customers? What do you do to make sure they become return customers?

Since I have written two books and am in the media often, we did not need to spend any money on marketing and advertising when we first started. However, as we have grown we have begun to spend more on these avenues through digital media. We find subscribers through social media and offer close to 200 webinars on trading education per year as a way to generate new leads. We keep customers by providing them with the best product we can and by continuing to expand the free and value-added offerings that come with our products.

What’s your management style with employees?

I would like to say that I am hands-off when I need to be. Basically, my team knows what to do on a daily basis and they get their jobs done. But if they do not and they slack off, I am the last person who is scared to voice their opinion.

What are some other companies or entrepreneurs you admire, and why?

There are so many great leaders, CEOs, and even sports athletes that I admire and aspire to be like. I live by the "never quit, and things can always be better” approach. Steve Jobs and Elon Musk are by far my favorite CEOs of all time; I have read many books on them.

Do you have a favorite inspirational quote?

"Success is having to worry about every damn thing in the world, except money." --Johnny Cash

What new initiatives are you working on?

We currently run one of the biggest paid trading rooms in the world. My goals for the future of the business are much higher than that. We are working on new software and proprietary indicators to be sold to our customer base, but more than anything, we are working to grow the community aspect of our services. I want to create the biggest and best community for retail traders in the world.

What advice would you give to someone hoping to start a business similar to yours?

Buckle up, because it is going to be a bumpy ride. Honestly though, everyone often thinks it is all about hard work. Hard work is important, but there is one quote about business that always stuck with me. Marcus Lemonis, star of the CNBC show The Profit, said that the "Three Ps" are the most important part of running a successful business: people, product, and process. You need all three--not one or two, but all three. If you have all three, then you can take the business world by storm.

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