What Does it Take to Be a Day Trader – Part II
Last month we covered some basics so, be sure you review
the issue from September 2011 before reading this session.
I’m going to address more time regarding equipment and
overall traders setup. Traders should consider using more than one monitor while
trading. Depending upon whether you are trading stocks, futures or forex
markets, you will want to monitor more than one chart. Even if you are only
making one trade at a time, you will want to monitor the Dow Jones Industrial
Average at the same time in order to keep an eye on the overall market activity.
Additionally, you will want to have one monitor for your trading platform which
you want to have opened every moment you are trading. You do not want to have
your trading platform minimized while you are trading, it’s the brain behind the
whole process so, you need to be able to see it in front of you at all times.
The additional monitor can be used for our
Trading Room and any other windows you *need* during the trading day, such
as a news source, for example. The ultimate setup for a trader is to have more
than two monitors which allow that many more charts to be viewed simultaneously.
You can have your trading platform take up two monitors and the other monitor
for our Trading Room and the other windows you *need* during the trading day.
Some traders will use both a PC and a laptop, one for their trading platform and
the other, for browser windows.
Remember, during the trading day, you should completely
refrain from surfing the web. Surfing the web can bog down your computer and at
any given moment, opening the wrong page could cause your computer to crash
therefore, take this potential problem out of the equation by doing your
surfing, when you are not trading. Additionally, depending upon the size of your
processor, you may need to clear your cache in the middle of the trading day. If
you notice that your computer seems to slow down or appears sluggish during the
day, normally, clearing your cache may be in order. Frequently traders who
experience sluggish activity will do so, at about the same time each trading
day. Therefore, you may wish to clear your cache at the same time of day –
before you notice the sluggish activity. For example, let’s say you notice your
computer starts to get sluggish around 1:00 pm – you would then want to make it
a practice to clear your cache at 12:00 pm noon – do it before the problem
starts. Remember; make sure you are not in any trades when you decide to clear
your cache! You can adjust the time you clear your cache around the time you are
all cash, and no open trades at that time. Additionally, at the end of every
trading day you should also clear your cache and, in the morning as well before
you begin trading. Proper
computer maintenance is vital.
If your broker account is separate from your trading
platform, you will want this open during the entire trading day as well. Take
time when you are not trading to set up your monitors, how you will view your
windows, while you are trading. Each day you should get set up at least 30
minutes or more, before you are ready to begin trading. Know ahead of time, what
will be positioned where, on your monitors. Every day, you should set up your
monitors, browser windows and trading platform, the same way. You want to avoid
any confusion or clutter and have a steady flow of your workspace. At some
point, you should almost be able to set up your monitors - browser windows and
trading platform with your eyes closed – that is how uniform everything should
be. Everything should have its specific location on your monitors, every single
trading day – same position, day in, day out.
If over time you see something is not working out where you
have it located on your setup, move it around during off trading hours. You
should not be distracted during the trading day, trying to resize or reposition
anything you use during the trading day. Don’t jeopardize a trade because you
are resizing your charts, for example. Do it after trading hours, not during.
We’ll cover more, in our next months Trading Lesson.