Computers For Day Trading
If you are looking to day trade stocks, futures or other commodities, you need to have the right trading tools, especially the right home setup. This includes trading with the best computer to meet your needs, investing in a reliable and robust charting software, and having a means to place trades through an online broker.
After the reading this article, you will be armed with the knowledge to prepare yourself with the right tools to trade successfully.
First off, you need a computer that can handle the demands of running both a real-time charting software and brokerage platform. This is not the place to skimp, but you don’t need the fanciest computer either.
Most computers these days can do the job effectively. What you do need is fast processing speed and large amounts of RAM. In fact, since you will be running multiple programs simultaneously, invest in RAM.
It used to be that only desktop computers could handle the requirements of charting software and brokerage platforms, but this is no longer the case. Laptop computers are just as powerful as desktop computers. Where they may be lacking is in comfort.
If you’re going to stare at a screen for the 6-hour trading day, you’ll probably want a larger more luxurious screen than your laptop will provide. In addition, many traders favor having multiple monitors, especially if they’re looking at multiple markets or time frames simultaneously.
One other peripheral I would recommend is a power backup. Every trader has experienced being in a trade when your charts go down or during a power outage. It can be scary to say the least. Having a backup power supply will ease these concerns tremendously.
Speaking of charting packages, you want to choose one that gives you real-time charts as opposed to end-of-day. End-of-day charts are useless to the day trader. Also, when choosing a charting platform, look for length of time in business and a large user base.
In addition, it also helps to have the ability to code entries and exits in the software and to backtest trading strategies, as well as replay trading days. This way, you can practice your trading in your off-hours, after the trading day has passed.
Major charting software packages, not listed in any preferred order, are TradeStation, eSignal, Market Delta, Investor/RT, Ninjatrader and Ensign. Do your research before investing in one of these though. Most charting programs offer a free trial. Take advantage of it.
Whereas you can actually place trades within some charting packages, most traders also use a separate online trading platform to enter and exit trades. These platforms are usually provided by the broker with whom you choose to do business. Your broker may have more than one platform from which to choose, so again, research your options.
It is essential to your trading business that you have the right tools to ensure your success. Choose a computer with a fast processor, invest in additional RAM, and if you can, a power generator and additional monitors. Choose a charting package that is well-used by many and that offers you the ability to adapt itself to your style. And familiarize yourself with the various online trade entry platforms that are available.
Carefully learn your business and invest in the right tools, and you too can make a living as a day trader.
