We understand your feelings.  That's why we have a Friendliness Guarantee.  Give us a call...we know all about working with new traders.  You might want to check out the interview between Trader Jim and our firm President Andy Daniels.  It will tell you a lot about how we work with people.  Today's small customer will hopefully be tomorrow's big customer, so all traders receive the same respect and courteous treatment.

I'd suggest reading our interview between Trader Jim and Andy Daniels.  Good brokers are far more than order takers.  They'll explain market mechanics, which orders to use and why.  They'll watch prices for entries and exits.  They'll automatically enter stops and profit targets once you enter a market.  They'll cancel one order if the other is filled.  They'll watch your back and sometimes save your hide.  Most people who have had a good broker know it and they're real advocates for that broker once they have.  

Caribwealth, In anything but a day trade once a day is enough.  Yes, you may use one of our online trading platforms to execute trailing stops.

Brokers come from varying backgrounds.  Some have financial degrees and others do not.  The best don't always have to have a financial background.  In order to become a broker, you must pass the Series 3 licensing exam.  Then, you are registered by the NFA and CFTC, including a background check.  It sounds glamorous, but like lots of industries, it really is just a lot of hard work.  Long hours, lots of calls, learning the markets...it can be a grind.  It can pay well, but not always.  Many customers don't realize that brokers have risk on every order they take.  If they buy when they should have sold, but 10 instead of 1, etc...those are all called "errors" and brokers are responsible for them.  So, while they work very hard and can make good money, some brokers have lost an entire month's income with one error.  I have seen 6-figure errors in my time.  So, the risk affects everyone.  Given that, yes it can be highly stressful, but helping people can also be very rewarding.      The best brokers get in the zone during market hours and take it all in stride.  But, remember they have a lot on their back too, so don't judge them too harshly moment by moment.  They're always doing the best they can for their clients.   

Hi Simon, I can help you with your question. Remember, anytime you fund a trading account it should only be with money you can afford to lose. Don't use the rent money or the food money. If you lose the money you don't want it to affect your lifestyle.

You would never want to risk your entire account on one trade. Again any trade is funded by risk capital -- money you can afford to lose.

Hi Edgar - not sure how to answer this.  Do you mean what % of our customers have 5/10/15+K?  As a firm, most fall into the latter category (15K+), but we have MANY customers who start with 5-10K and we're very accustomed to working with them.  When I was a broker, some of my best clients started there.  Remember too, as I said earlier, today's small trader will hopefully be tomorrow's big trader.  We all want that, right ;-)  

Heidi, Simply call your Daniels Trading broker when a market is trading at your breakout price or have him/her set an alert at that price to contact you.  At that time we are able to provide vital information such as bids/offers, theoretcal value, delta, etc.  Stops and targets may be setup in the same manner as price alerts on a breakout.  Use the underlying futures contract to deteremine if a position should be liquidated.

Chrys, You should never let a broker intimidate you. They put their pants on just like you and I. Remember, they work for you and if they are not doing the job then you need to find another broker! Simple as that.

Daniels Trading is a firm that has been around for a long time and Andy Daniels is also a trader. Daniels has spent a lot of time and effort to make sure that they fully understand our courses and how we want our Course Members treated. I'm sure that they'll agree when I say they are in it for the long haul!

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Hi Denny2 and thanks for your complimentary comments.  Your strategy sounds perfectly reasonable to me.  Scott has been around 20+ years, so I'd run it by him too.  We love sending checks home to you!  In my opinion, there's nothing wrong with paying yourself and taking some money off the table.  Just make sure to trade within your margin. 

Hi Larry From Long Isla! I see what you're saying. Yep, I would think that today's price action could be considered a breakout of the small pennant you described.

Thanks for the kind words about the Premium Alert Videos and the new How to Trade Chart Patterns with Early Entry Techniques.

Hi Marsha - yes, we look at them.  there's lots to look for and many ways to interpret, but here's one place to begin: http://www.danielstrading.com/resources/commitment-of-traders.php

Hi Heidi!

Click the Premium Alert Service graphic below and it will tell you all about the various subscriptions. Thanks for your interest and kind words.

Click here for more information or
call 800-230-2427 Monday through Friday,
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Hi Tigger - No Daniels Trading brokers working with GBE and US Chart customers are allowed to trade their own accounts.  We view it as a conflict of interest.  You're paying your broker to work for you, not to be potentially distracted by his own trades in the market.  That's our perspective at least.      

Smokey Joe, The issue with tracking an exit point on an option by percentage is that it could only be done at the end of day.  However, as your broker I can place a price alert at your "stop loss" and "target" on the underlying futures contract and contact intra-day.  As you know time is a factor in these markets.  While you cannot watch the markets all day remember that I am.

Hi Pammie - not a silly question at all.  We send checks and wires to our customers all the time.  Just give your broker a call or shoot him an email and tell him what you want.  Some do it monthly, others quarterly and still others whenever the need arises.  All you have to do is place the request.  Hope this helps. 

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Hey Chris, Typically, when buying puts or calls we look for options that have about 90 days remaining prior to expiration. That said, be sure to check out the Low Ball Strategy because it's approach is completely different. As far as when you should get out. That is really up to you and your trading plan. Generally speaking we will exit option trades when either a predetermined mental stop is hit or the option loses a percentage of the premium.

Hope this helps! 

Thank you for joining us this eveing, theodora! I'll first point you to the Training Videos. Search through them and you'll find some sample paper trades. You might also want to refer to the Paper Trading: How to Develop an Unfair Advantage DVD. It's a two disc set all about Paper Trading.

Next refer to my blog and the It's About to Happen emails I send out.

That should more than cover it for you. Lastly, please call a Course Counselor Monday through Friday from 8:30am to 5:00pm PT at 541-955-2885 if you need assistance.

Hi Jim - We'll generally work with whatever our clients have in mind, but volume discounts are the exception and not the rule.  Remember that your broker has risk on every trade he places, so larger lots mean bigger risk (for both of you).  Buy/sell errors cut twice because not only is the customer owed the winner, but the broker has to eat the loser too.  Lastly, the service he provides in managing that trade with you isn't discounted in any way either...he'll still call you, place contingency orders, price alerts, etc., if that's what you require and all of those services warrant a traditional rate.  Once again, just talk to your broker while keeping these points in mind and I'm sure you'll both work it out.  Hope this helps.

I'm not sure I understand your question, BC Trader. When you initiate the Neutral Market Strategy you're taking in premium from the sale of both the put and the call. If you take in say $500 from the call and $500 from the put, you've taken in a total of $1,000.

Hope this helps, if not be sure to try asking me again or call a Course Counselor in the morning.

Hi dormansandor -Brokerage accounts don't have insurance like FDIC.  What they do have is security through Customer Segregated funds, as mandated by the NFA and CFTC.  I can send more data on this privately, but essentially Customer Segregated funds mandate that your funds are kept in a separate account in your name.  They are never co-mingled with your clearing firm's funds and your funds will never be dragged into the mess if your firm has insolvency issues.  As always, you can have your money at any time. 

Hi Folks - thanks for coming tonight.  If you found it helpful, Don and I will gladly do it again.  We're here to help.  Please check out the tools and offers we have on the GBE and US Charts sites and remember our Friendliness Guarantee.  We're here for you, so let us help.  Oh, one other thing.  I wasn't able to get to the commission questions.  If you'd like a quote, give us a call at 800-800-3840 and we'll be happy to provide you with one.  Thanks!

Good Trading!

Well that's it for this month. I'd like to thank our guests, Ken Packard and Don DeBartolo for joining me on this special evening.

I also want to thank each of you for investing your time with us tonight. As usual you had a ton of good solid questions and I'm very happy that you took this time to "Ask a Broker."

Keep in mind, that you're not alone in your trading journey. US Charts Online, myself, and our wonderful Course Counselors (541-955-2885) are here to help you become the best you can be. On that note, be sure to check out our weekly video training lessons at: US Charts Online. This is a fantastic teaching tool and free to all GBE Members and US Chart Online subscribers!

Finally, make sure you have a plan prior to entering any trade and use stops to protect your trading capital. As a trader your capital is THE most valuable asset you have!

Plan your trade and trade your plan!

My next chat will be on Tuesday, August 16, 2008. God Bless and I look forward to seeing you then!