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 Tom Dosdall
Why did you become a futures & options broker?
I was always drawn to the Chicago Board of Trade ever since I relocated to Chicago in 2007. The CBOT building itself pulls you in just by its sheer size and presence on LaSalle Street. Besides that, financial markets in general have always intrigued me. I find analyzing the dynamic interconnectedness of global markets to be a fascinating science. There is something about price discovery in the free market for physical commodities that we all use every day that keeps you energized to get up in the morning and see what has developed overnight. When I had the opportunity to meet Andy Daniels in 2007 and learned about his brokerage business, I didn’t hesitate to take the leap of faith, and I’ve been here ever since.
What are your favorite markets?
I tell my clients that if there was a market for paper clips, we could figure out a way to trade it. What I mean by that is I don’t impose limits on the markets that we trade, but I can surely say that I have a few favorites in corn, soybeans, sugar, lean hogs, and live cattle.
What are your favorite types of trades or strategies?
I am a big fan of outright futures positions (long or short) as well as futures spreads.
What is your view on Fundamental and Technical Analysis?
With the way big money flows into and out of our markets these days, I believe strongly in about 80-85% technical analysis. I don’t ignore the fundamentals but I also don’t let them dilute my decision making process to the point where I overlook the price action in front of me.
Beyond executing trades, how else do you help traders?
I think most of my clients will say that I help them to keep a level head, whether they are down or up in their account on any given day, month, or year. Executing a trading strategy is one part of being a good trader. However, one of the more difficult aspects of the job is consistently practicing elusive behavioral traits, such as discipline, consistency, and responsible risk management.
What advice do you tell new clients?
Don’t be afraid or too proud to take a loss and move on.
What do you believe is the biggest myth within the trading industry?
I think the biggest myth is that the E-mini S&P is the most lucrative just because it has the most volume traded during the day. Too often traders box themselves in with the E-mini S&P when there are plenty of other markets out there with a lot of volume as well, and unless you’re trading 100-200 contracts at a time, it shouldn’t make a difference to you whether or not the bid or ask size is 100’s deep at any given price level. Look at the charts and find a market that you think has the potential to develop a trend. I can say from years of experience that’s not always the E-mini S&P!
What is the most under-utilized brokerage service?
Far and away, managed futures are the most under-utilized brokerage service. Research such as “The Landmark Lintner Study” suggest that managed futures, when comprising a percentage of a broader portfolio constructed mainly of equity holdings, have the potential lower overall portfolio risk and potentially enhance overall returns. That said, it is one of the things clients ask me about the least.
What is the key to being a good broker?
The key is listening to the customer and understanding how the client wants to approach the markets. If it’s a new relationship, I will usually explore the question of “why futures?”, “why now?”, and “why Daniels Trading?” As a broker, once you can understand those core questions, it lays the foundation for a strong, trusting relationship with the client.
Do you have any unique talents?
I can play the “Jeopardy” theme song using only my hands.
Do you prefer Chicago style or New York style pizza?
New York style pizza wins this race most of the time but if it’s a sub-freezing day in Chicago, nothing beats a slice of Pequod’s deep dish.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.