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 Scott Hoffman
Why did you become a futures & options broker?
My grandfather was a banker in an Iowa farm town. I started to learn about commodity trading from him, and he taught me a lot about acting with integrity.
What are your primary strengths as a broker?
With my experience, I can identify common mistakes made by traders and help my clients avoid some of them. I can help assist clients become successful traders without pushing my own agenda, allowing them to discover for themselves how to be successful.
What is your trading/investing philosophy?
In the 1990s, I followed Linda Bradford Raschke. Through her, I learned the Taylor Trading Technique and other trade methods. Linda had a knack for identifying when a market was likely to turn or when to expect a large market move. I have adapted these methods to suit my trading and I use it to publish my trade advisories, Swing Trader’s Insight and Trade or Fade.
What is your view on Fundamental and Technical Analysis?
I was an economic major in college so I’d like to think that prices are driven by things like supply and demand. That being said, I don’t find fundamental analysis to be especially helpful for trading in the swing trading timeframe I prefer. I don’t ignore the fundamentals- the macroeconomic picture can affect prices- but I find it difficult to use to actually analyze and trade the markets.
What advice do you tell new clients?
Don’t blindly follow someone else’s trade ideas. I think the path to becoming a successful trader is to think for yourself and take responsibility for your trade results, with the goal of becoming a successful, confident and independent trader. If you just follow someone else’s ideas you’ll be unlikely to reach this goal.
What do you believe is the biggest myth within the trading industry?
The biggest myth is that trading is easy, and someone has the “Holy Grail” for successful trading and they will be happy to share it with you. If you want to find the Holy Grail, you have to find it yourself, through work and experience. Your successful trading plan will be one you develop, not something you got from someone else. Having your own plan is what makes you successful, confident and independent.
What is the key to being a good broker?
Being consistent and acting with integrity, while working with clients who also have these qualities.Don’t just try to force your ideas and agenda on your clients; give them the space to be independently successful. It’s not about the broker’s ego; it’s about the client’s success.
Tell us a little about your background?
I come from a Midwest family and grew up in suburban Milwaukee, playing football and hockey. I went to The University of Chicago, where I majored in Economics. I started in the futures business by working on the floor of the Chicago Mercantile Exchange. I moved off the floor to work as a broker, where I learned trading and brokering from a former chairman of the Chicago Board of Trade. I’ve watched the futures industry evolve from trading in the trading pits to screen based trading. Open outcry trading taught me a lot about how the markets work, and many of these principles apply to today’s screen based trading.
What is your favorite vacation spot?
I have two. With the wife and kids, I like Block Island, Rhode Island. It’s an awesome little beach island town and a great place to relax and recharge. I also like fishing in Northern Canada- I’ve fished in Northern Manitoba, Saskatchewan and the Northwest Territories.
Who is your favorite sports team?
Growing up in Wisconsin, I’m a huge fan of the Green Bay Packers. Given their recent dominance over the Bears, this has been especially enjoyable. I’m also a big fan of the Chicago Blackhawks.
Do you have any unique talents?
I have a high tolerance for tedium (and pain) and was a reasonably talented triathlete and marathon runner when I was younger, could recover faster and had more free time.
Can you change a tire?
Of course. I drove some junker cars when I was younger, so I learned a fair amount about car repair and maintenance. I’m also pretty handy around the house, and enjoy household projects as my time allows. I like the problem solving aspect and sense of accomplishment you get from it.
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