More and more people now embrace the day trading/e-minis trading opportunity as many professional day trader open their trading room to be piggy backed by bunch of amateur member. One of the main tools for such trading is the computer itself. Many computer shop exploits this niche market to get maximum profit from these capital rich day traders. But that’s really not necessary.

Trading Computer is Not Gaming Computer

While it’s natural that everybody wants the best , but one thing to remember that the requirement for trading computer is not that high compare to the computer for playing games.

Computer for games have to do a lot simultaneous 3D simulation (hence calculation) while producing detail audio effect and special efffect on the background with someone hitting the mouse or keyboard at 100km per hour (read: very fast). This is even harder requirement for those 3D technical computing for engineering, i.e: Autocad, or Mathematics.

Trading computer while still need to display real time data, it only does 2D graphics display and without the sound effect and the user only give execution maybe once every minute tops. So much much lower requirement of those gamers.

So, if you are a gamers and want to do trading as well, your computer is already twice as good. But if your son is a gamer, do NOT borrow the computer because you don’t know other stuff running behind. Get yourself a decent trading computer describe below.

The Ingredients of Trading Computer

Multi Monitor for Trading

Below is the guidelines that you might use for your trading need. Remember that I don’t know the specific requirement of your trading platform, so always refer to their user manual for final check. But here is the mainstream:

1. You need Multi Monitor: minimum 2 (two) of 19″ monitor. Widescreen monitor is better as the graph is usualy follow the aspect ratio of wide screen. Three (3) monitor is a little bit excessive as you only want to run: your trading execution platform, your charting software and internet browser (for checking news). Recommended: 2 LCD monitors of 22-24 inch display (widescreen). You don’t need the fastest one either (the one with lowest refresh rate). 3 computer? maybe no. You will find bracket for 3 monitors probably more expensive than the monitor itself. Just buy 2 and place it side by side on your table. No bracket necessary.
2. You need a lot of memory/RAM: while some recommending 2GB or better, I would say go broke and get the maximum. For 32-bit operating system: Windows XP, Vista 32-bit, Windows 7 32bit and similar the maximum is 4GB of memory (usually the system can use less than this). So aim for this. If you are with 64-bit operating system, go for at least 6GB. If you need some powerful item, memory is the one. Trading computer will have a lot of real time data that need to be stored somewhere. RAM is the best place rather than slower hard drive.
3. The CPU and its speed is not crucial: go for multiple core: core duo, quad core, I5 core or I7 core depends on your budget.
4. Hard disk: 500GB will last for good few years, so any additional just extra for your downloaded movie or song (nothing to do with trading)
5. Graphics Card: you don’t need the fastest high end graphics card. A cheap card that support dual monitor with at least 512MB memory will be more than enough.
6. You HAVE TO have backup broadband connection. Your main connection should be at least ADSL or cable broadband, but additionally you need to have backup connection ready to connect within 30 seconds. While internet connection is getting robust these days, some fault is still possible, so if it’s gone, you need to be able to re-connect to internet within 30s and just hope nothing really significant happened. Recommended: those mobile 3G broadband connection: even 1 GB plan per month should be enough.
7. Do not use wireless router for your network connection. Repeat: DO NOT use wireless network connection between your computer and your router/modem. I cannot stress enough. Ask for good CAT6 Ethernet cable. Using wireless connection not only give you additional delay as the computer and the router need to do hand shacking in encryption environment, but also make you prone to disturbance from your environment. For example if your geek neighbor decided to experiment with new wi-fi equipment, you are prone for any disturbance. Using cable eliminate this risk very very significantly.
8. Do not use wireless keyboard nor mouse. While it’s fancy, using wireless keyboard/mouse add to your latency time (your realtime-ness) and put additional burden for your computer to maintain the connection. Recommended: wired keyboard and wired laser optical mouse.
9. Invest on Uninterrupted Power Supply(UPS). This days this item you can get less than $100. Even the cheapest is enough. Connect your router and computer and monitor on UPS, if there is power interruption, at least you can immediately exit from the trade before the battery run out a few minutes later.
10. Backup Computer: a small netbook/laptop or even old computer will do. The idea is just to have your execution platform there (the charting program is not necessary). Always have it on and ready when you are trading. So if your main computer for some reason decide to crash, your old computer will be your savior, at least you can exit straight away. You need to just 1 click from login to your execution platform on your old computer.
11. Do not run any unnecessary program: your Yahoo Messenger, Twitter client or open Facebook account. Windows Update, Antivirus Update and other automatic update need to be pause during your trading. This is not only a distraction to your trading, it can occupy some of the bandwidth of your internet connection. If you want some gentle music, play it with your CD player/ipod, don’t let your computer play it – it require decompressing the data coding that require a lot of computing power.

I am hoping the guidelines above can save you thousands of dollar that you probably better use it for trading capital. Tell your computer shop that you know what you one. Check at least Ebay to see the current rough price. I would say fulfilling criteria above, you can get a decent trading computer with 2 monitor at below A$1500. Yes, not that expensive, really.

Nov 2009 price: $199 each for monitor (AOC 24″), 1.5TB HDD+Windows7 $229 , intel i5 750 cpu+gigabyte p55-ud3+4gb corsair for i5 1600c9+logitech mx revolution $590,800VA UPS $85, Powercolor HD4650 1GB Graphics card dual monitor $53 and plus casing+keyboard+cd. (All price is in Australian dollar, price from http://fluidtek.com.au.)

(I am sorry, I am not that familiar with Mac computer. But you can hopefully still get some kind of picture about it. As far as I know, only some popular trading software fully support Mac – check your software provider first)

Should you have any question , feel free to ask on comment section below.

How About Laptop for Trading Computer?

While technically a good laptop is also suitable for trading, but you will get the bank for your buck if you aim for desktop computer. Beside laptop suffers the scalability problem (you cannot or very difficult to upgrade in later day). And one big non technical problem: since laptop is portable, user tend to stuff everything that can be install and save into the laptop render it stuffed and sluggish for excellent trading computer.

Until then, Happy Day Trading ! See you in a trading room !

Denis Kristanda