As day traders we spend hours
debating trading technique, chart formations, and all sorts of highly technical
questions in order to give ourselves every possible advantage in trading. And
these sorts of conversations are normal; day trading is a highly competitive
business and a wise trader uses all the resources available to him or her.
But one resource is essential for
successful trading and it is probably one of the least discussed; to be sure,
most traders take their computer set up for granted. Many traders view their
computer set up as a commodity that is little more than a working part of a
much larger scheme. We take our computers for granted, and that is probably a
mistake. To be sure, I would suggest that your computer is one of the true
essentials in the trading business.
But in my travels I have seen some
trading computer setups that are nearly hilarious. I see old computers using
outdated operating systems, systems set up with no backup utility, and a
variety of computer systems rigged together in haphazard fashion. Yet the
computer is one of the most important components in a traders vocation; without
the computer our communication with the market would be impossible. The
computer is our sole communication device with the markets and we are totally
dependent upon our computers proper functioning. My observation, though, is
that most traders take their computers set up for granted. Many of the systems
are pieced together in a haphazard fashion.
Why is this? That's a difficult
question to answer.
I see many traders who trade solely
on notebook computers. There is nothing wrong with notebook computers, though
they are far less robust than desktop computers. Most notebook computers have
limited expansion capability and substandard graphics setups. Yet it's not
uncommon to see traders use notebook computers as their primary trading
computer. It just doesn't make sense to me.
I will admit that notebook computers
have come a long way in recent years. Early notebook computers were notoriously
unreliable, tended to overheat, and were loaded with a substandard feature set.
By and large, this is no longer the case with notebook computers. To my way of
thinking, though, they still lack the robust nature of a desktop computer and
are less than desirable as a traders primary computer. Most notebooks use an
onboard graphics system, though a second monitor can be added through the
serial port most notebooks supply. Yet onboard graphics, although they have also
improved in recent years, are not nearly as versatile as a quality graphics
card in a desktop computer.
On the other hand, a desktop
computer contains multiple expansion slots that allow a trader to add a variety
of peripherals that can be quite helpful. For example, I use high quality
graphics cards for my monitors, have a second hard drive in my desktop
computer, and use 10 GB of RAM to assure that I don't run short in that
department. All of these additions are made possible by the flexible nature of
the desktop. Quite simply, the desktop is a far more robust trading platform
than the notebook computer. For that reason alone, I much prefer desktop
computers as my primary trading computer. I do have a notebook computer at the
ready as my backup computer, and take my notebook computer with me when I go to
do trading seminars or sit in with a group of traders. So it's not like the
notebook computer has no place in the day trading environment, it's my opinion,
though, that a primary trading computer should be a desktop computer because of
the high degree of flexibility they offer.
Of course, new traders may have
little choice as to which type of computer they will trade on as they may be
forced to use whatever they have available to them. This is understandable. But
once a trader has reached a certain level of success, I think a well thought
out desktop computer system is essential, complete with a backup system that
can be depended upon when needed. On my desktop computer, I also have an
uninterrupted power supply in case I suffer a power outage during a storm or
any other potential problem that may cause the power to go out. I also use an
online backup system that automatically backs up my computer four times a day
to an off-site source. In short, I have taken the time to consider my computer
needs and potential problems that can arise and developed workable solutions
that will not cause my trading business to come to a halt should some
catastrophic event occur.
In summary, it is my opinion that
many traders give their computer system short shrift as they trade. Our
computers are our link to the exchanges and any computer failure brings trading
to an abrupt halt. A well thought out computer system, complete with backup, it
is essential for a professional trader and, in general, deserves more
consideration than it appears most traders are using. I recommend all traders
evaluate their system and bring it up to date. After all, it is our
communication device that facilitates our living.