Tom Dosdall is a futures broker at Daniels Trading. Throughout his time here, Tom has found himself helping clients trade futures for a wide array of commodities and execution categories. In addition to being a futures broker, Tom is also the author of Dosdall's Daily Edge, where he uses a select set of third party indicators to give his clients an edge in the futures markets.
In this interview, Tom shared his trading philosophy, thoughts on technical analysis and how he handled a tough situation for a client in the grains industry.
"I rely on the technicals because it makes decision making much clearer in my opinion" – Tom Dosdall
Tom's trading philosophy and thoughts on technical analysis
When asked about his trading philosophy, Tom explained that regardless of what vertical he is trading in, he is heavily focused on the technicals.
"I try to thread in some of the fundamental analysis. Probably about 10-15 percent fundamentals. For the rest I rely on the technicals because it makes decision making much clearer in my opinion," Tom said.
The specific indicators Tom uses and features in his Daily Edge are known as TAS indicators, which are compatible with Daniels Trading software. He believes these indicators provide superior results to the typical chart indicators most often used in trading.
"A lot of indicators sort of lag behind the market. TAS indicators are much more intuitive intraday in terms of making a decision on where to enter a trade, where to risk a trade. I do a fair amount of work with it," Tom explained.
Who are Tom's clients and how does he help them?
While most of his clients are speculators and traders, Tom said he does work with producers looking to hedge in certain markets. He noted that what makes the type of technical analysis he does so effective is that it works equally well for both types of clients. Tom told of one instance where he was able to help a cattle feeder stave off losses from an undesirable position.
"I have one client who runs a big cattle feeding operation. I recently talked to him and he had some short positions on and was trying to hedge lower prices." Tom said.
"But when I saw the market breaking out to the upside and breaking through with bullish momentum, I called him and said 'These hedges are going bad on you. The market's rallying, do you want to leave them on?' He didn't know what to do."
Tom was able to use his own analysis to form an opinion of the market and help the producer make a decision. He took the hedges off and protected his client from the changing market.
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