Page 73 - THE MARKET WHISPERER

THE MARKET WHISPERER 71

investors, the category where most brokers fall, and those who provide
web-based platforms. They are known as Online Brokers. Professional

brokers supplying direct access platforms allow fast navigation of direct

orders to any target. Professional brokers provide trading platforms which
are not web-based, but which usually require downloading and installing

software and allow the trader to send orders directly to the stock exchange
computer without using a slow, costly method. These are called Direct
Access Brokers. To be a successful day trader, you must work only with
Direct Access Brokers.

How to Choose a Trading Platform

The trading platform is the most important link in the system connecting
trader and broker. I know traders whose trading volume is so large that
they could significantly decrease the commissions they pay if they’d move
to a competing broker, but may prefer to stay with a more expensive broker
because of their satisfaction with the broker’s trading platform.

The trading platform lets the trader route buy and sell orders directly
to the stock exchange computer. The trading platform you will use must
include charting which will help you follow stock rates in real time.

SMART Commissions aren’t the main consideration when choosing
MONEY a trading platform. Execution speed and reliability are far
more important to the trader than the commission charged.

Just as a skilled carpenter will not compromise on the quality of the

saw, so a professional day trader will never compromise on the quality of

the trading platform, as any such compromise will end up being very costly.

Think for a moment about what might happen if a trader wanted to buy a

stock at the breakout point, but the order is delayed and the transaction

is missed because the stock has risen higher than the requested price.
The trader’s frustration will be immense.So will the long-term financial
damage.

The direct access system lets the trader buy and sell stocks direct

from any destination with liquidity at the moment of execution. If the
trader wishes to do so, the order can be routed directly to an ECN which

provides the stock exchange’s liquidity. Alternately, the trader can direct

the transaction directly to the market makers. There are advantages

and disadvantages with direct routing to any destination according to