At Daniels Trading, we focus on building trusting relationships with our clients. We believe one of the best ways for you to establish trust with your broker is to learn more about him or her! In our “Get to Know Your Broker” series, we will provide you with insight into the lives of our brokers, from their backgrounds and career paths in trading to their personal favorites and hobbies.
Introducing John Payne
Why did you become a futures & options broker?
I love taking the ultimate challenge with people, these markets are exactly that. They are like a moving jigsaw puzzle with an infinite amount of pieces. I get no bigger rush than helping people accomplish their goals in markets like these.
What are your favorite markets?
I cover the grains for a few media outlets, so I guess you could start there. But I love any market that moves.
What are your favorite types of trades or strategies?
I’m an option guy at heart, but I believe that having the knowledge of all strategies is important. Trading is a bit like playing golf, in my opinion. Different situations call for different clubs. Some situations call for futures, some need options, some use a combination of both. My job as a broker is to give the client multiple strategy choices so they can learn why we take a certain path and why we didn’t. I find this is a great way for the client to learn about different ways to trade.
What is your view on Fundamental and Technical Analysis?
I don’t believe either is better independently. I look at trading a bit like reading a book. You need fundamental analysis to understand the story and technical analysis to know when you should turn the page. I use fundamental analysis to understand what events have the capability to move the markets and technical analysis to help me time entries and exits.
Beyond executing trades, how else do you help traders?
I always try to get folks to think of me as one of those Sherpas who help folks try to climb Mt. Everest. Getting to the top depends on drive, determination, planning and sometimes luck. I help with each of those points. But my job is to not get them to the top of the mountain; my job is to keep them alive during the climb. I have traders participate for years, to have their accounts slashed by a mistake they made by using too much leverage or not being in the correct trade that fits their market outlook.
What advice do you tell new clients?
Don’t judge your trading based off the short term, immediate results we see every day. There is a saying that is heard a lot on the floor of the CBOT: “Making money is easy, keeping it is hard.”
What do you believe is the biggest myth within the trading industry?
One of the biggest myths is that trading futures is the riskiest thing anyone could ever do. While the risks are there, there are ways to mitigate those risks to fit the profile of any trader. Most people don’t understand how to measure the proper amount of leverage at first.
What is the key to being a good broker?
Patient aggression. Talking straight and making sure everyone knows where the risks lie relative to the rewards. I think a good broker is in his desk every day before the market opens, getting prepared for the battle that is the trading day. My clients can expect a prepared, competent individual who knows these markets along with having an expertise in how to leverage the tools that Daniels Trading provides our clients to meet their goals.
What do you like the most about your job?
I love that I have the opportunity to work with people from all over the world. What other industry would allow you to get to know folks from 6 of the 7 continents.
Who is your favorite sports team?
Iowa Hawkeyes. My oldest memory was being in attendance for #2. Michigan vs #1. Iowa in 1985, one of the best Iowa football games ever. I was hooked from there. My first born son will probably be named Hayden Fry Payne.
Tell us a little about your background?
I was born in Iowa, bouncing around to different towns. My Dad was an employee of John Deere, so we went where they told him to go. I spent two of my high school years living in Chihuahua, Mexico. Between that and my time in the Navy, I have spent a good chunk of my life outside of the United States. I’m thankful for the perspective my journeys have provided. I think they make me right for this job.
Do you have any unique talents?
I can bounce on a pogo stick for over an hour straight. I think of myself as the Michael Jordan of pogo sticking….
Do you prefer Chicago style or New York style pizza?
New York pizza. If I want Lasagna, I’ll order Lasagna.
THE RISK OF LOSS IN TRADING COMMODITY FUTURES AND OPTIONS CONTRACTS CAN BE SUBSTANTIAL. THERE IS A HIGH DEGREE OF LEVERAGE IN FUTURES TRADING BECAUSE OF SMALL MARGIN REQUIREMENTS. THIS LEVERAGE CAN WORK AGAINST YOU AS WELL AS FOR YOU AND CAN LEAD TO LARGE LOSSES AS WELL AS LARGE GAINS.
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Risk Disclosure
THE RISK OF LOSS IN TRADING COMMODITY FUTURES AND OPTIONS CONTRACTS CAN BE SUBSTANTIAL. THERE IS A HIGH DEGREE OF LEVERAGE IN FUTURES TRADING BECAUSE OF SMALL MARGIN REQUIREMENTS. THIS LEVERAGE CAN WORK AGAINST YOU AS WELL AS FOR YOU AND CAN LEAD TO LARGE LOSSES AS WELL AS LARGE GAINS.
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.
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