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 Burton Schlichter
Why did you become a futures & options broker?
I started my career as a stock broker. My first exposure to the market was back in middle school and high school when I worked at a bait and tackle shop. Two brothers, Joe and George Haismann, owned the store. One of my daily routines, besides counting night crawlers, leeches, wax worms and red worms, was to look up their stocks in the Wall Street Journal. I had to look for the symbol and net change for the day. One of their stocks was Playboy — never forgot it! Curiosity took over and I started reading why the markets and stocks moved up and down. From that point, I was hooked and told myself that this is what I’m going to do to get out of this small town of Antioch, IL. I spent roughly 2-3 years on the equity side until an opportunity to work at Lind Waldock came up. I decided to check them out, and the rest is history. It was in 2009 when I joined Daniels Trading, and my love for the markets hasn’t changed.
What is your trading/investing philosophy?
I always have a plan before I enter a trade. I enter and exit the market from a technical standpoint. I always recommend stop losses, and I “trail” stop losses for risk management purposes.
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
What are your favorite markets?
Financials for the most part. But I also enjoy the Indices, metals, energies, interest rates and currency markets.
What are your favorite types of trades or strategies?
Swing trades (holding positions overnight), spreads and options. I’m also a turning point junkie.
What is your view on Fundamental and Technical Analysis?
Who’s leading who? I think the technicals dictate price movement. However, if someone called me up and said “why is the market up or down today”, I could give you different fundamental reasons.
Describe the dynamic of broker-client relations?
I think the key factor in broker-client relations is listening. Picking up the phone or being there when a client needs help, listening to their needs. You need to know your clients — what do they trade, how do they trade, and what are their trading habits. Be honest with clients. Set expectations. Overall, to have a successful relationship you must listen.
What advice do you tell new clients?
Use a Stop Loss. I personally believe it is crucial to use a stop loss. Have a plan before going into a trade. Be willing to accept losses, and limit them when you can. Leave your opinions at the door. Avoid over trading.
What do you believe is the biggest myth within the trading industry?
Many people come in thinking that it’s easy… it’s not! You have to put your time and effort in.
What is the most under-utilized brokerage service?
Broker-assisted. Many retail clients are “penny wise pound foolish”. I understand everyone wants to brag they have the cheapest rate and they want to push their own buttons, but if only clients took the time or asked “what do you think”, or what are you seeing”, or “what do you suggest”. I might suggest getting in at a better price or exiting a trade earlier or talking you out of a bad trade.
What are your hobbies or what do you do on your leisure time?
I have 4 kids (10, 8, 6 and 3). Leisure time… what’s that? I’m a broker during the day; and at night and on the weekends, I’m a basketball, baseball, softball coach, plus an Indian/Princess guide. I’m constantly cabbing my kids around town to different sporting events. I actually like going to work. It’s quieter here.
Who is your favorite sports team?
I’m definitely a Chicago fan: Bulls, Hawks and the Cubs (maybe next year right?).
Tell us a little about your background?
I was in the Army right out of High School. I needed some discipline. That discipline has carried over into trading.
Risk Disclosure
WHEN INVESTING IN THE PURCHASING OF OPTIONS, YOU MAY LOSE ALL OF THE MONEY YOU INVESTED.
WHEN SELLING OPTIONS, YOU MAY LOSE MORE THAN THE FUNDS YOU INVESTED.
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
STRATEGIES USING COMBINATIONS OF POSITIONS, SUCH AS SPREAD AND STRADDLE POSITIONS MAY BE AS RISKY AS TAKING A SIMPLE LONG OR SHORT POSITION.
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.