A common myth in the investing/trading world is that you need the best technology to trade. I see many new traders going out to purchase high performance equipment, yet, they haven't learned the first thing about trading.
I just want to clear this up... You don’t need to best technology to trade, it’s just beneficial.
When it comes to selecting your next setup, please keep it simple and don't overspend.
Everyone is in a different financial situation and some individuals can afford a more expensive setup than others, when I first started trading over 4 years ago I wasn’t that person, I started out with a £250 Toshiba laptop.
At the time there were many other individuals who were going out to buy a brand new setup in excess of £2,000 because their "mentor" told them to.
What is my message? Don’t go overspending, preserve your capital for investing and upgrade your equipment when and where is necessary.
Your primary focus should be on developing yourself as a trader and becoming consistently profitable.
High performance equipment is not “needed” to become successful but it is definitely beneficial. Below, I have provided the minimum suggested specifications as well as the ideal or preferred specs.
Hardware
- Central Processing Unit (CPU): Intel Core i5 Processor (Intel i7 is a higher performance option)
- Random Access Memory (RAM): 8GB of RAM (I personally have 16GB as I run higher demand applications)
- Operating System (OS): Use an up-to-date operating system such as Windows 8.1/10 or OS X El Capitan if you’re a Mac user (new versions become available frequently).
- Screen Size: Depending on your choice of equipment, if you are using a laptop focus on 15” to 17” screens. An excellent size of screen for a computer is personal preference, I use a 27” iMac.
- Monitor: There is one very simple question on this topic, do you need more than one screen to be able to trade? The answer is a big fat NO.
Personally I love using my iMac for trading, as it has a 27” screen and I can run multiple applications simultaneously.
However, if you want to go for a multiple monitor setup I have you covered.
Twin-Screen Mount: VonHaus Double Monitor Desk Mount
- This wonderful piece of equipment mounts two screens side by side, it can hold two 13”-27” monitors. Good news, it’s extremely cheap.
Internet
A high speed internet connection is a requirement for day traders.
Generally speaking without a high speed internet connection you may face a number of issues.
1. The price you see on the screen may not be accurate; with a slow connection or slow computer you will get “lagging” quotes. This is when the price on the exchange has changed but you’re still looking at old prices. Even a second of lag (which is large) can mean the difference between being filled on your order or not.
2. Similar to the above, your orders take time to get the exchange. A slow connection means that data takes longer to get the exchange. This can mean increased slippage on market orders and potentially missing trades.
3. You’ll likely be running other applications or monitoring some websites for day trading information. If your internet can’t keep up with the data stream of these sites it may result in missing the information you need to act on in the moment.
I’m more than positive other issues could arise but I just want to make you aware of the facts, slow internet = disaster.
All of the above is not a worry to me for two simple reasons.
- I have a high-speed internet connection
- I don’t sit at my screen all day, thankfully (meaning, high-speed internet isn’t a need)
Although, if you are planning on becoming a scalper or day trader ensure you have a high speed internet connection to avoid any of the above issues.
Webcam & Microphone
You’ll be surprised how often I get asked questions about my recording setup for educational content, here are my main cost efficient recommendations.
Webcam: Logitech HD Pro Webcam C920
- This webcam looks like a million quid... For far less than that :)
Microphone #1: Rode NT-USB Microphone
- This is the microphone I am currently using, it’s my all time favourite. Easy setup, plugs right into your computer.
Microphone Shield: LyxPro VRI-10 Isolation Microphone Shield
- If you want to reduce reverb, this is exactly what you need.
Microphone #2: Rode Podcaster USB Dynamic Microphone
- Similar to the previous microphone, you'll want to combine with a shockmount and boom arm.
Shockmount: Rode PSM1 Shockmount For Podcaster
- The mount attaches to the Rode Podcaster microphone to keep it stable, it doesn’t ruin the recording if you accidentally bump the mic.
Boom Arm: Rode PSA1 Swivel Mount Studio Microphone Boom Arm
- This is the arm that attaches to my desk and holds both the shockmount and the micro- phone in place. Looks the part, easy to use and keeps your desk clean.
I'm no tech savvy genius but I do know what works and what doesn't, especially when it comes to investing/trading.
Don't forget to upvote, resteem and follow me for in-depth market analysis and investing education.