Page 68 - THE MARKET WHISPERER

66 PART 2 - Day Trading And How To Get Star ted

Hardware, Software, and the Internet

Reliable hardware is an essential link. It is very worthwhile making a
clear distinction between the old home-use computer containing tens of
programs and possibly even dormant viruses, and your trading computer,

though that’s not a necessity at the outset.

SMART An effective computer and screens are the most important
MONEY tools in trading.

Initially, it’s enough to use a home computer with a single screen. As you
progress, it is recommended that you switch to a high-quality computer
linked to four screens, each a minimum of 21 inches, but preferably a
23 inch size. Further on, I will show you my work station and detail the
function of each screen.

Hi-speed Internet is vital for the execution speed of orders. Internet
connection reliability is crucial. Remember, though, that communications
breakdowns are part and parcel of day trading, but they can be greatly
reduced if hi-speed, reliable connections are secured.

The Advantage of the Group: Using Trading Rooms

Stock trading is easier to perform when you’re part of a group. A novice
trader will find it difficult to go it alone in locating suitable stocks, making
the best decisions, and maintaining high level self-discipline. In an online
trading room in which many others are also active, the novice trader finds
solutions for all these problems.

Trading rooms are not a new invention, even if the online versions are.
Professional literature has been discussing them for at least the past 150
years. They were always the places where traders swapped views, got
help or instruction, and tips on hot stocks. Joining a trading room helps
overcome one of the biggest issues faced by the day trader: self-discipline.
When a large group makes a joint decision, it will usually be far more
correct than the decision of the lone novice trader.

I joined an online trading room in my first year of trading. I remember
listening to the analyst, as the trading room’s instructors are known, and
thirstily absorbing every word he said. As the years passed, I too became
an analyst of that very same trading room, and later the head analyst of the
Tradenet room.

Have I already mentioned that you don’t need to leave the house in