In this interview, Tim Justice, the host of the Trading Justice Podcast, interviews a trader from our community, Lewis Crompton, with 5 fast questions about how why he became a trader, how he’s developed his trading edge and what his trading goals are.
- Why did you get into trading?
- What is your trading edge?
- What is your daily routine?
- What are your trading goals for the future?
- What advice would you give a new trader?
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Tim: we are alive I’m back with one of my friends a young man that I met when’s it been Louis maybe 16 months ago or so probably down there
Lewis: yeah around that Yeah
Tim: Singapore and Kuala Lumpur and oh yeah on Facebook about you getting tricked to carry the water up to those stairs you remember that
Lewis: yeah I do remember that at the Batu Caves
Tim: yeah those monkeys stealing our food oh I’ll never forget that as well Louis is a coach he’s a speaker he’s an entrepreneur property investor, I believe as well and he has proper English and so he corrected constantly how are you doing Louis
Lewis: I’m very well thank you very well stay slightly tired been having far too much fun Downey Cape Town you know all Good
Tim: you’re in South Africa traveling and you’re heading back to the UK right now is that right
Lewis: and I’m one way to Johannesburg to help out and do some coaching and then I’m going back to the UK
Tim: I see all right well I’ve got five questions for you and we have an international audience and a lot of them you know they look at the market 24 hours a day so I think it could fit into their style as well good number one why did you get into training
Lewis: for me I was working in an office job that I just knew was never going to give me the time freedom or the income but I wanted to basically live the lifestyle I wanted and so though I enjoyed the job I realized very very quickly it wasn’t going to give me the life I wanted longer-term so I when I heard about investing and I heard about trading and I could see the potential for being anywhere in the world with my laptop with an internet connection and making money that attracted me quite strongly so I just decided to learn how to do it correctly and get on with it really
Tim: so time freedom lifestyle getting away from something that necessarily wasn’t what your vision was for your life and finding something new is that right
Lewis: yeah
Tim: I love those there’s number two what is your trading edge
Lewis: my trading edge I think really comes down to the education I have which has taught me how to understand and data and track data so markets change conditions change and if you know how to record the data you’ve got in the markets from your live trades but also the testing you’re doing of those markets and the strategies that you’re trading you can amend those strategies over time seeing what is actually working and what is not actually working so I say that that is my edge really is being able to a record that data correctly but understand that later
Tim: yeah you know statistics and numbers do matter I think it intimidates some people about markets but the reality is you don’t have to to be able to build algorithms but you do have to understand numbers at a base level you know expense drawdown risk management things like that I think it’s a wonderful answer to he had a good coach, you must have a really good coach then to make you become data-driven in your analytics and your decision-making I like that
Lewis: especially someone who isn’t analytical by nature so I’m not I’m expressive hence why I’m traveling around the world all the time so one experience I want fun being data-driven doesn’t come naturally to me so it’s a discipline I had to build into my trading very intentionally so actually makes myself successful
Tim: interesting what is your daily routine in
Lewis: right yes so I get up in the morning and I like to read when I get up so I go for a walk I read and then I come back to my home office my room if I’m at home or if I’m in a hotel somewhere come back to my hotel room open my charts load up my charts and I’ve already created on a Sunday I’m a watch list of markets I’m looking for so I then each morning of that we go back to my watch list check how the markets at performance I’m primarily a swing trader now and it works in terms of the flexibility so that I’m looking at entries on the day charts looking at the weekly charts for supporting evidence so 30 minutes to an hour a day trading maximum as a swing trader see I’ll load my chance I’ll check against my watchlist what’s happened in the markets to see if there’s any change in the strategy that I’m looking up if that strategy criteria have been met on that market from the watchlist if it hasn’t then I’ll either keep it on my watch list or if it’s done something different which means it no longer fits my strategy I’ll take it off of my watch list okay so that’s kind of the process I do Monday to Friday um and then I’ll start up a new watch list again on the Sunday
Tim: so creativity in the morning it sounds like I mean writing reading and then starting to study and then you apply a step by step I like it I think it very much connect to it as well you know I’m an early morning guy, I like to trade in the morning I trade through the day as well by the time I get to the evening though my brain usually isn’t isn’t the same point you know so I do most of my best work in the morning and on a day-by-day basis I don’t really do a lot of testing you know I do that on the weekends or the evenings when I have time but really it’s just about executing your edge I love your answer there number four what are your trading goals
Lewis: my trading goals are to achieve around 5% per month return on my capital but I say that really for me, that’s kind of that was kind of how I set goals early on now my trading goals are more around process so am i meeting my process correctly so that’s kind of where I focus my goals now so my overarching like profit goals are around 5% per month but really on a day to day basis my trading goals are have I followed my process have I stuck to my strategy have I been placing good trades and following good trading processes messages have I been following correctly the systems I put in place which match my data and therefore I’m sticking to the edge of what I’m trading and actually doing things correctly if I defer from that that’s when I start to not have as good results
Tim: what’s really interesting about that I was just on a conversation this morning with it with a student of mine part of our community over at tackle trading listening to our podcast and whatnot and she was looking at her results and she was kind ofscratching her head said you’re doing really really well says Tim, I haven’t made any money in two weeks you know and she had a good the positive curve in January and early February and I said that’s not how you judge whether you’re doing really really well or not you know you can have a week of trading where you make your 2% or 3% or whatever you’re on your way to your 5% monthly target and you can feel like a rock star and you can have the next week of trading where actually you were just as good and you did everything you were supposed to do and make no money you know yeah and I think any veteran trader knows it’s not about them short-term result it’s about the equity curve and staying disciplined and making sure we don’t lose our mind right yeah so much of this is psychological and emotional and I love, that answer that’s a very experienced veteran answer it tells me a lot about you Louis there’s no doubt good answer number five what advice would you give a new trader
Lewis: what advice we give to a new trader hmm don’t be in a hurry take time learn this skill correctly and focus on your data creating data tracking data and analyzing data those are things which will give you the edge I think I speak to a lot of new traders and they are always desperate to make money straightaway which I understand and is good to have that greed element because that’s going to keep you going but a lot of people I think early on don’t necessarily give trading the respect and time-space as a skill to actually learn their craft correctly and trading is a craft so giving yourself patience and time even if it takes you a year even if it took you two years to learn the skill correctly you’ve then got that skill for life so I would say be patient give it at the time in the respect that it requires and focus on your data
Tim: trust the process right, Louis
Lewis: trust the process yeah yeah that’s exactly right
Tim: guys we’ve been speaking with Louis Crompton who’s a trader out of the UK and I want to say London but I know that that’s just like calling in New York City when you might live in Queens where do you live in in in London I live in North on in place with High Barnet and real estate property investor, as well as a trader in the Forex commodity and index markets, travels the world doing it as well Louis, you are a scholar a gentleman and I know you’ve got a flight so we’re gonna kick this one great job young man appreciate it
Lewis: thank you very much thank you
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