Interview: Jim Dalton of DLC Profiles by Jayanthi Gopalakrishnan
Author and former hedge fund manager James Dalton is a Market Profile believer,
and he’d be the first to tell you that. A member of both the CBOT and the CBOE, he
served as executive vice president of the CBOE during its formative years. Between
writing Mind Over Markets and his latest book, Markets In Profile, he also served
as director of research for managed accounts at UBS Financial Services, where he
worked with an array of professional money managers. As a result of this
experience, Dalton has come to place added emphasis on employing Market
Profile for the longer time frames.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan interviewed Jim Dalton on October 10, 2007, via telephone.
Jim, how did you get interested
in the markets?
I came out of the Marine Corps and went to work for IBM. I was there about a year and a half.
I was the top salesman in the country,
and I hated every day of it. Then I went
to work for Merrill Lynch as a broker.
Shearson Lehman hired me after that
but I didn’t think their research was any
better, so I started doing my own research
in stocks but that still wasn’t any
better than what they had to offer.
Then I got involved with a couple of
professors at the University of California
–Irvine campus. They had a strategy
where they would be long stock and
short warrants, knowing that the warrants
would converge. I was fascinated,
and since warrants are similar to options
I was able to gain some background
Dalton on October 10, 2007, via telephone.
Eventually, I went to work for the
Chicago Board Options Exchange
(CBOE), where I was responsible for
research and public investor affairs, and
was the director of marketing. The early
days of the CBOE were interesting because
it put me in touch with all the
brokerage firms and all proprietary trading
accounts. I got a pretty good foundation