Most traders are constantly worried about what to buy or sell and when to buy and sell it. They may give little thought to the structure of their trading stations or hardware, or what they include on their various screens. Or give little thought to how they can speed up their analysis and get their work done faster.
In this blog post, we will discuss the trading hardware that you can consider that help your trading performance and also keep your peace of mind.
Invest In Yourself and Your Trading Technology
First let’s begin with the philosophy behind what we are doing and why we are doing it.
You want to find ways to invest money in yourself and your trading. To invest in things that will benefit your trading career. That offer you a return in your trading and life. To have purpose behind the spending of your money. To align part of your spending on things that will boost your career.
To further your education, better your mindset, help organize the most important information so you can do your trading work faster. Finishing your trading work for the day faster, gives you so many different possibilities. It gives you flexibility. Flexibility to:
1. Spend time with your family and friends. You don’t have to keep pushing trading analysis and research for the day if there are no opportunities. You can relax for the rest of the day. As Paul Tudor Jones once said: “If you don’t see anything, you don’t trade. You take risk only when you see an opportunity.”
2. Analyze new markets and financial instruments if you so choose. If you only trade currencies, you can expand your opportunity set by adding in stocks and/or futures to your trading repertoire. Someone who is hungry for the trading profits and wants to advance their journey and generate triple digit trading returns, usually wants to do this.
3. Further your education by reading, watching videos, etc. You and you alone choose the sources of information that you deem to be valuable to your trading. You want to further your trading education in your spare time, especially if you are not doing well. As Paul Tudor Jones said: “The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.”
The people who have goals, and a vision, and find the smart things to spend money on, are the people who get ahead in this world. No goals or vision, and there is no telling where the money goes. I remember speaking to one person who expressed a slight desire to trade talking about how he got a bonus for the year at their job, but didn’t know where all the money went!
So take a simple sheet of paper, write out some of your trading goals on the top and then make a list of possible things you can buy and invest in that can speed up your process.
Another thing to note, is that some people are afraid that if they don’t have the technological infrastructure of a hedge fund that they have no chance. They are afraid to learn how to trade because they think it will cost $10,000 or $50,000 or $100,000 to get some decent technology, plus they are worried they will have to pay a further hundreds or thousands of dollars every month for information, etc. I am here to tell you that this is not the case. Your information flow and data costs can be very minimal or non existent, so you don’t have to burn that cash. You can use it for other things, or sock it away in savings as a nice cash cushion. Free and great information flow can be gotten through Thomson Reuters news through an Oanda demo account for those curious.
Now, let’s move into what Trading Hardware to have:
I have traded with one monitor, and I have traded with multiple monitors. In my opinion more is better, up to around 4-6 monitors. You can just put so much more information flow on your screens. You can put so many more charts on your screen. And multiple monitors also makes doing your daily trading habits much easier. The daily trading habits are some of the most important, as they give you a structure to approach your trading day. I reveal them in the Order Flow Mastery Course.
“I remember looking at myself with awe, amazed at the speed with which I could react, the wealth of information I could draw on, and the analogies I could apply. I was on top of every situation, I was able to establish connections that were not readily visible to others.”
That was back in 1980 when he said that, and there was certainly less technology than we now have today. So it is exciting to be able to apply some of those strategies, with today’s technology of multiple monitors, intraday charting, etc. Things are so much simpler nowadays!
Now, I have heard of successful traders who just trade with a single monitor. And it can be done for people who trade only on a swing trading basis analyzing the market once or twice a day or so. However, if you desire to be an active trader to have the potential to make 20%, 50%, or 100% in a single month, then having multiple monitors is so very important.
And yes, it is possible to achieve double digit returns or triple digit returns in a month. It DOES NOT happen every month, since if it did, you would own the world in a short amount of time. Paul Tudor Jones made +62% during October 1987, and followed it up with +17% in November 1987 to help him return +200% for the year. Not bad, considering he was running over $100 million dollars in capital!
As Van Tharp once observed:
“My belief is that the largest profit percentages are made by active short term traders who really have their psychology together. I’ve seen short-term traders who could make as much as 50 percent or more per month when they were very in tune with the market and themselves.”
He is very accurate in that trading belief!
Now, not only can multiple monitors make it much easier on your trading work and habits, it can also help out other areas of your life as well. If you use your trading computer and station for other things as well during non trading hours, then you can have higher productivity in searching for and completing other tasks as you can open up multiple browsers and programs on different screens, etc. Of course, someone can also use it to goof of, but that is the risk with technology. It is like leverage. If you know how to harness it and have the mindset and strategies, you attain happiness and wealth faster than you would without it. If you don’t know how to harness technology and have bad habits, etc, then five or ten years may pass and nothing special may have happened in your life.
Now, when you decide to get multiple monitors, you may also need to get a stand or two, to hold them all together.
Solid State Hard Drive
Various computer specifications can effect the performance of your applications. The processor, video card, RAM, etc. But one overlooked specification can be that of the hard drive. If you have a traditional Hard Disk Drive (HDD), you can experience all sorts of increasing computer performance and responsiveness, by upgrading to a Solid State Drive (SSD). And you are always looking for more speed when it comes to your computer as long as it comes at a reasonable cost. The extra responsiveness gives a boost to productivity, which means you finish your work faster and are happier!
Bottom line is this: You can speed up your trading PC with a Solid State Drive.
When someone is a serious trader, and wants to give it their best shot, they are compelled to look for any possible edge – in their trading strategies and habits, in their personal development and people they associate with, in their sleeping patterns, in their nutrition and taking care of their bodies, and in their trading hardware as well. Some are of course more important than others – such as the trading strategies and habits, but you still look for all sorts of ways to improve.
Backup Hard Drive
Your computer can still fail on you. I remember back in my early days, during one of my most profitable trades with a tiny account, I was constantly worried that the computer would give me a blue screen of death. Luckily it didn’t happen and I was able to watch the trade and close it out.
Nowadays, you can upload files into the “Cloud,” and have them backed up there. And the cloud should be good enough.
But, just in case, it is good to have a backup hard drive attached to your computer that saves critical files automatically every day.
You want to have alternative means of analyzing the market and placing trades and closing out trades in case anything happens to your main computer. You can phone in orders, but you want some kind of capability of viewing your positions and the charts.
You can use a laptop.
Or nowadays, you an also use a tablet, or even a smartphone.
Your trading station is so important as you could be spending anywhere from 5 hours to 40+ hours a week at it. So you definitely want to give some thought to how you have it structure and the hardware, etc.
Overall, these are some the simple steps you can take to give a boost to your trading and your life, and also give you peace of mind as well.
Finally, when you have that setup, you have to have the mindset and trading strategies to be able to interpret the information to generate the trading signals. To get the insights you need to speed up the process for that, Click Here for The Order Flow Mastery Course.