You’ve opened a trading account. Read all the important trading books. Now, you are ready to become a serious day trader. What should you do next? Why, create a trading work station, of course!
Having a trading work station allows you to have that one place to focus on day trading. Furthermore, it keeps you organized and motivated. It also makes sure no one else accidentally touches your system.
Looking at all the trading workstations of experienced day traders, you might think it’s a complex process. It does look daunting when you’re a beginner. However, with these steps, you should be able to set up an effective day trading work station:
Step #1: Assemble Your Computer Setup
First things first, what kind of computer should you use? Do you need multiple monitors?
You definitely need a reliable computer with good specs for this. Quad-core is highly recommended, particularly one with 2.8 GHz – 3.3 GHz
Of course, you can also get the ones with better specs but they will cost you more money. If you are on a budget, stick to the 2.8 GHz ones.
As for screens, this depends on your needs. You would want to start with one or two monitors first. You will be surprised at how many traders only have one or two monitors.
There is a common misconception that all traders should have multiple screens. The more, the merrier. However, this isn’t true for all traders.
Some traders are comfortable with a simpler set-up. Furthermore, it really just depends on your needs and preferences. If you are not sure what kind of trader you are because you are just starting, you can go with one or two monitors first and eventually add as you go along.
For RAM, you can go with a simple 8GB one. Also, you can eventually upgrade but if you are on a budget, this should be a good starting point. You actually need a high RAM if you want to run your day trading programs and software without lags.
Step #2: Make sure you have a stable internet connection.
All traders know that their success in executing a trade depends highly on their internet connection. While wired connections are still the most dependable, there are a lot of wireless internet providers today that also provide solid connections.
We suggest going with a more expensive plan if you want faster loading times. Additionally, consider getting a second internet connection. One that you can bring anywhere would be convenient if you are always on the go.
Step #3: Get the right software or programs.
You already have the hardware, now it’s time to set-up your software. If you don’t have a broker yet, choose one that has a good trading platform. More importantly, choose a broker capable of addressing your needs and preferences.
Look for good charting software. There are a lot of good free charting programs but you can also take advantage of the paid ones if you prefer a lot more features.
If you are investing in stocks and Forex, you need to be updated with the news. This is why you also need software to update you on breaking news to ensure you are always updated with current events that can affect the movements of the stock and Forex market.
Many people go to the next step without doing this. However, if you live in an area where the electrical flow can get quite unstable sometimes, you need to perform this added step.
Moreover, installing surge protectors will ensure that your electronics won’t get fried in case of power surges. If you have an old house, you could be prone to electrical surges. For instance, if you see flickering lights in your home, there is a chance an electrical surge can happen.
An electrical surge is bad because it drives more electricity to just one spot in the house. As a result, your computers could be the recipient of high energy. Having said that, you should go the extra mile in protecting your primary tools for investing.
What is a trading work station without a solid work table? You need to make sure that your work table is strong and sturdy enough to accommodate the weight of your computer and monitors. This is especially true if you’re going to set up multiple monitors that can weigh down on your table.
Day trading involves extended periods of sitting down. This is why you need to make sure that your work table and chair are ergonomic. You can try buying a table with adjustable height features to ensure that you can tweak its settings to suit your specifications.
Step #6: Find the best place for your trading work station.
Is there a spare room in the house where you can work without interferences and distractions? Take advantage of these spots. It doesn’t have to be an empty room if you don’t have it. That said, even an empty corner will suffice.
Make sure you pick a well-lit area. You don’t want a dark and dreary trading work station. Studies say that people perform and think better when they are in well-lit spaces.
Try positioning your work station near a window. One that has a view can make slaving away in front of a computer more bearable.
Firstly, when setting up a trading work station, you need to understand your needs and budget first. Don’t just follow what everyone else is using -you are not one in the same.
Follow what you think is the best set up for you. Moreover, it’s not going to be permanent. Feel free to add or remove things as you see fit. Happy trading!