Traders Setup

Traders Setup

Computer
Any computer you buy should be able to support at least two monitors, preferably more.
Trading off a laptop is fine, especially if it is good one with a large screen. Make sure you can hook another monitor up to it and that it can handle the task – again, ask for a gaming laptop.

High-Speed Internet
A high speed internet connection is a requirement for day traders. Without a high speed connection you will face a number of issues.

Multiple Monitors
Duel or triple-monitors make trading life much easier. Depending on how you set up your trading platform and your desktop, duel monitors will serve most day traders who only focus on a few stocks, futures or forex pairs. If you trade multiple assets and are always searching for action, three monitors (or even more) is a better choice. The extra monitors allow you to watch more charts and streaming data feeds from sites which monitor for breakouts, trade setups etc. 21-inch wide screens or bigger are ideal.

Desk and Chair
This one may seem like a no-brainer, but you need enough desk room to not feel cluttered while you trade; the more monitors you have (or eventually want) the bigger the desk you’ll need. Here’s one place to save some money; a cheap or makeshift desk will work just as well as an expensive one. Drawers to store pens and paper for jotting down notes to yourself is ideal.
A lot of traders don’t trade all day, but rather only a few hours of the trading day. Even so, get a chart that is comfortable to sit for several hours a day. You want to be focused on your trading, and not squirming around in an uncomfortable chair. Choose practicality over extravagance.

News Sources
Some traders want constant access to news. News sources vary, from providing macro global news stories to disseminating the latest stock specific news. There are paid news sites and free news sites; pricey doesn’t necessarily mean better.
MarketWatch is usually quick to disseminate news, and sites like Yahoo! Finance syndicate content from multiple news sites—will often post relevant stories as quickly as paid sites. Benzinga disseminates news quickly, and Twitter has become a very quick way to stay in the loop … although make sure the source is trustworthy.
TV channels like CNBC and Bloomberg are also viable sources for stock specific and global news.

Broker and Platform
Your physical space is set up, now you need to choose a broker. For day trading, commissions are important – cheaper is better. At the same time, if your broker offers zero support to you when you need it (execution goes down or you have a power outage) one trade could end up costing you way more than you saved on the cheap commissions. Each market has its own brokers who specialize in it; if you want to trade forex ask active forex traders (look around on LinkedIn) what they use. Same for futures or stocks.
The most important thing for a platform is quick execution. There is a very wide array of trading platforms, from simple to complex. If you are a new trader, simple and free is fine and works for many traders. If you want more advanced tools you may need to pay for a platform such as NinjaTrader, TradeStation or another platform.
Economic Calendar
A simple chunk of free information you must read before your trading day begins. If you are trading U.S. stocks or futures during regular trading hours, the free Bloomberg Economic Calendar should suffice, if you trade outside of U.S. market hours (or trade forex) you’ll want to monitor the global economic calendar, like the one available on DailyFX.
Day traders typically close out positions and step aside for high impact news releases and then jump back in after the release when a direction is established. Holding a position through a high impact news release means taking on an unknown, and potentially very large, risk.

Trade Ideas
Day traders have a vast universe of stocks to choose from. Narrowing that search down using websites or software is a common tactic. Follow active day traders on Twitter to get loads of trade ideas throughout the day. Get the beat on what is starting to move, moving well or is breaking out.

A Mild Distraction
Trading isn’t all action; it can actually be very boring when not much is going on. This is where having some of distraction can actually help you from making impulsive and low probability/low reward trades. Having some music or CNBC on in the background will give you something to listen to or watch during the quiet times.
Your primary focus is watching the market, so avoid anything that engages you so much that you stop doing your job. Instead of CNBC or music, you may decide to write in your trading journal during quiet times.

Trading Journal and Community
As you trade, keep a journal of how you perform each day, and any tendencies you notice. Write down what you did right and what you did wrong in terms of your trading plan. Did you trade how you planned to trade, or did you deviate? Why? By writing these things down you have a better chance of becoming more conscious of them in the moment and changing your habits.
Trading can also be a solitary endeavor. If possible, join a community of traders where you can discuss trading and seek help on any issues you have noted in your trading.

The Bottom Line
Getting set up as a trader is going to take some work, money and probably reaching out to a few current traders for some advice. The bare minimum is a having a good computer, high speed internet, at least one (preferably two or three) monitor, a competitive and quick response broker, trading platform and comfortable work environment. Monitor economic news releases, visit websites (or your platform) for trade ideas, find a mild distraction for quiet times and ideally join a trading community to help you reach your goals.