Meet The London Black Cab Driver Who Follows A Strict Trading System
Each day we meet some incredibly talented investors and traders. They all seem to have different experiences and with that comes unique lessons and insights about financial markets. Most recently we were introduced to the BlackCabbieTrader. Guessing by his profile name – yes he is a black cab driver in London who also trades! We had to ask him a few questions about his career and what the stock market means to him. Here’s the fun conversation we had over a few emails.
1. What happened first: trading or your job as a black cab driver?
I was interested in the stock market from a young age. I used to keep the pages from the daily newspaper and follow the tickers and the prices but didn’t really know what it all meant or how it worked. It wasn’t until 2012 when I entered a trading competition here in the UK called the ‘City Index Trading Academy’ where I was actually taught to trade and which I went on to win and the £100K prize that my trading journey really began. It was before, during and after the trading competition that I was studying to become a Black Cab Driver which I finally became about 8 months after the competition. So I became a trader just before I became a cab driver and have not looked back since.
2. It’s a pretty great story to hear you trade AND drive a cab. We don’t
hear that often. How do you balance your time? Do you ever trade from the car?
Because of the time difference after the market has closed (also to avoid market noise) I run a nightly scan of Long and Short stock candidates hitting 52 week highs/lows with some added parameters. I keep note of these stocks. Over the course of the coming days and weeks I look for which stocks keep hitting the parameters of my scans before taking a closer look at the charts. Once I see there is a clean smooth trend be it going up or down I then calculate from the closing price where my stop loss would need to be positioned for the next day in line with my risk management and then simply wait for the open the following day to open the trade. Then my system does the rest, and yes many times I have opened new positions while sitting on cab ranks.
3. What kind of trader are you?
I’m a Long/Short US Equities Trend Follower and Risk Manager. I like to think here in the UK I’m the biggest advocate of the Turtle Traders, Jesse Livermore and Nick Darvas and the way they traded. Because I hold my trades for weeks and months and I do all my homework when the market is closed it doesn’t affect my day job. It only takes seconds to open trades at the open and once that’s done I only check on the market a few times throughout the day but don’t actually need to do anything as the stop loss is in place from the beginning. I can go weeks without opening new trades if I don’t see the need to or if there are no candidates hitting my scans with clean trending charts. I always like to keep things simple.
4. Any similarities between trading and driving a black cab?
Yes there are good days and bad days and you just have to get through them whatever the outcome and come back another day.
5. For everyone out there who trades while also holding a primary job – what is the most important piece of advice you can give?
You have to do all your trading homework out of working and market hours so you have a clear head with no distractions such as market noise. Have your trades ready to go for the following day’s open so then all that needs to be done is the executing of the trades and after that it’s left to play out as it should in line with your strategy for a win or a loss.
6. Are any passengers in your cab amazed when they find out you trade?
Do they ever ask for tips or give you tips?
I’ve got into a number of conversations with CEOs and directors of publicly traded companies here in London and after they realize I’m a trader, they try to tell me (unsuccessfully) why I should buy their stock. I’m not one for taking stock tips so I politely listen then don’t give them another thought once I’ve dropped them off. I have a clear strategy and I’m a big believer in ‘if it isn’t broke then don’t try to fix it.’
We hope you enjoyed this interview and we plan on doing more of these over the coming months. If you have an interesting story to share about financial markets or know someone who does please let us know in the comments below! We’ll reach out for a quick interview.
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