Becker Private Equity & Business Podcast: Episode Summary

Title: Building Prosper Trading Academy, Navigating Market Volatility & Finding Purpose Through Loss with Scott Bauer
Host: Scott Becker
Release Date: April 21, 2025

1. Introduction to Scott Bauer and Prosper Trading Academy

In this episode of the Becker Private Equity & Business Podcast, host Scott Becker welcomes Scott Bauer, a seasoned trader and educator with over two decades of experience in the trading community. Bauer shares his journey from being a floor trader at the Chicago Board Options Exchange (CBO) to founding Prosper Trading Academy, a global platform dedicated to trading education.

Notable Quote:
"I built Prosper Trading Academy to bridge the gap between traditional floor trading and the modern electronic trading world, making trading education accessible to thousands worldwide."
— Scott Bauer [01:08]

2. Navigating Market Volatility

Bauer delves into the current economic climate characterized by heightened volatility due to factors like tariffs and geopolitical uncertainties. He emphasizes that while volatility presents opportunities for traders, excessive unpredictability can pose significant challenges.

Key Points:

• Embracing Volatility: Traders thrive on market fluctuations as they create trading opportunities.
• Challenges of Excessive Volatility: When market movements are driven by unpredictable news rather than technical or fundamental factors, it complicates trading strategies.

Notable Quote:
"Traders love volatility because it creates opportunities, but when volatility is driven by uncertain factors like tariffs and unpredictable news, it can become a double-edged sword."
— Scott Bauer [03:27]

3. Evolution of Trading: From Floor to Electronic

Scott Bauer provides a comprehensive overview of the transformation in the trading landscape over the past few decades. He contrasts the traditional floor trading environment with today's predominantly electronic trading systems.

Key Points:

• Traditional Floor Trading: Until the late 1990s, trading was predominantly conducted on exchange floors with market makers sitting in pits.
• Shift to Electronic Trading: The advent of electronic platforms democratized trading, allowing more participants but also increasing trading volumes and liquidity.
• Impact on Individual Traders: The transition disadvantaged many floor traders who couldn't adapt to the electronic environment, leading to a consolidation of trading power among larger institutions.

Notable Quote:
"With the rise of electronic trading, the individual market maker was almost sized out of the trading world, unable to compete with the massive volumes handled by big banks and institutions."
— Scott Bauer [05:14]

4. Scott Bauer’s Transition: From Trader to Educator and Entrepreneur

Bauer recounts his personal journey during the pivotal shift from floor to electronic trading. Faced with the decline of floor trading roles, he leveraged his expertise to transition into trading education, ultimately establishing Prosper Trading Academy.

Key Points:

• Hybrid Trading World: Early 2000s saw a blend of floor and electronic trading, which Bauer initially resisted.
• Role at Goldman Sachs: Bauer worked on the floor trading S&P 500 operations, gaining firsthand experience during the financial crisis of 2007-2009.
• Forced Transition: In 2011, Goldman Sachs eliminated all floor trader positions, prompting Bauer to pivot towards trading education.
• Founding Prosper Trading Academy: Recognizing the growing demand for trading knowledge, Bauer launched Prosper Trading Academy in 2012, focusing on options trading education.

Notable Quote:
"Being fired from Goldman Sachs was a turning point that allowed me to channel my expertise into educating others through Prosper Trading Academy."
— Scott Bauer [08:02]

5. Building and Scaling Prosper Trading Academy

Bauer discusses the organic growth of Prosper Trading Academy, attributing its success to strategic marketing, media presence, and a strong reputation built over years of trading prowess.

Key Points:

• Marketing Strategy: Relied on a dedicated marketing team to navigate the saturated landscape of trading education advertisements.
• Media Exposure: Regular appearances on major networks like CNBC and Bloomberg bolstered the academy’s credibility.
• Organic Growth: Focused on providing genuine value and leveraging Bauer’s 35 years of trading experience to attract and retain students.
• Current Reach: The academy boasts approximately 17,000 active students globally, offering comprehensive trading education across various financial instruments.

Notable Quote:
"Our legitimacy is reinforced by continuous media appearances, which help differentiate us from the myriad of fly-by-night trading gurus online."
— Scott Bauer [12:01]

6. Current Challenges and Strategic Focus

Addressing the present economic challenges, Bauer highlights the difficulties in marketing and client acquisition due to consumer reluctance to spend. He emphasizes the importance of providing additional value to convince potential clients of the academy’s worth.

Key Points:

• Market Conditions: Economic downturns have made it harder for businesses to attract new clients.
• Strategic Adaptations: Shifting focus from traditional advertising to value-driven offerings to entice hesitant prospects.
• Robust Trading Opportunities: Despite market challenges, Bauer maintains that trading opportunities remain abundant, especially for those equipped with proper mentorship.

Notable Quote:
"In a tough market, it’s essential to offer undeniable value so that those on the fence recognize the no-brainer benefits of joining Prosper Trading Academy."
— Scott Bauer [14:12]

7. Charitable Endeavors: The Lori Bauer Foundation for Sudden Loss

Beyond his professional achievements, Bauer shares a deeply personal story of loss and resilience. After the sudden passing of his wife Lori due to a heart arrhythmia, Bauer founded the Lori Bauer Foundation for Sudden Loss to support grieving children.

Key Points:

• Founding the Foundation: Established in 2011 to address the lack of specialized grief support for children.
• Impact: Created multiple grief centers in Chicago, assisting tens of thousands of children dealing with various forms of loss, including parental death, divorce, and incarceration.
• Programs Offered: Therapy group sessions for children aged 2 to 21 and summer grief camps providing a supportive environment.
• Personal Healing and Family Rebuilding: Bauer credits the foundation with helping his family navigate grief and rebuild a blended, loving family.

Notable Quotes:
"We built the Lori Bauer Foundation because we saw a critical need for specialized grief support for children, filling a void that traditional therapies didn’t address."
— Scott Bauer [17:50]

"Turning lemons into lemonade, transforming a catastrophic loss into a source of support and healing for so many children, is truly a story of resilience and blessing."
— Scott Bauer [17:50]

8. Personal Reflections and Legacy

Bauer reflects on his journey of personal loss, professional transitions, and the fulfillment derived from both his business and charitable work. He expresses gratitude for the opportunities that adversity brought into his life, including a new family and the ability to make a meaningful impact through his foundation.

Notable Quote:
"My story is not just about business success but about transforming personal tragedy into a legacy of support and love for others facing similar losses."
— Scott Bauer [17:50]

9. Closing Remarks

Scott Becker concludes the episode by commending Scott Bauer for his integrity, business acumen, and philanthropic efforts. Bauer expresses his gratitude for the opportunity to share his story and highlights the continued mission of Prosper Trading Academy and the Lori Bauer Foundation.

Notable Quote:
"I am incredibly blessed to lead Prosper Trading Academy and the Lori Bauer Foundation, serving both the trading community and children in need of support."
— Scott Bauer [22:18]

Conclusion

This episode offers a profound look into Scott Bauer's dual journey as a trader-turned-educator and philanthropist. From navigating the turbulent waters of market volatility to building a supportive community for grieving children, Bauer exemplifies resilience and dedication. His insights into the evolution of trading and strategic business scaling provide valuable lessons for aspiring entrepreneurs and traders alike. Moreover, his heartfelt story of personal loss and charitable work underscores the importance of leveraging professional success for meaningful societal contributions.