Trading As a Career Choice - Part 2: Equipment

Now you’re ready to trade with your broker, you’ve got your squeaky clean account and the sky’s the limit. You might be asking yourself: “hmmm…what kind of equipment will I need?” I’m sure you’ve seen people who have the fancy setups at their trading station, i.e. 5 monitors with 2 tower boxes each being cooled by liquid gel being stored in the back of the computer while their chair is specially designed by NASA scientists.

I’m here to tell you, if you didn’t know it already, that you don’t need all that crazy hardware. Even better is the fact that you can run your trading from a budget computer.

Most brokers now have web-enabled trading stations that only require you to log into a secure network. If you trade fast, then there’s also the downloadable program which you can use too (not sure which is better if you’re a fast trader so you’ll have to do your own research for that). You can also use your laptop if you’re the type that is mobile all day. With the advancements in wi-fi, you can be confident that if you miss a trade, all you have to do is zip over to the nearest coffee shop and wala! you can log into your account in time to catch that 5000 pip move after the fed says it will cut rates by 200 basis points. Yes!

If you want to take it even further than that, you now also have the option of trading from your specifically designed cellphone or PDA, thereby effectively projecting the powerful *bling-bling* image you deserve to have - that is, unless you’re getting killed on the trade. If that’s the case, try not to get any tears on your handheld gadget.

The bottom line is that you don’t have to get a crazy system. In fact, my system is 512 RAM and the only “luxuries” I have is a flat panel monitor with wireless keyboard and mouse.

Furthermore, you don’t have to get two monitors; you can perfectly work off of one. Once the money starts flowing in, then you can get all the gadgets. Ok, so what next?

Now you’ll be looking for a space to put your computer/laptop on as you hang the shingle on your door that says you are open for business as a trader. This space you’re going to need is a table, but not any old table - a decent spacious work table where you can rest your arms on top as you dissect market trends with laser-like precision.

I’ll never understand how someone can get a tiny convertible “workstation” and be able to function. I’m sure it can be done but I just wonder why when having a good sized table is a much better alternative. Think about it this way; your table is where you’re going to be conducting alot of important work in your life whether it’s paying bills, studying (if you’re a student), or filling out various forms of paperwork - like taxes - from your trading. It helps to have a spacious table also because when you’re up late at night trying to study up on trading, you have all your papers and books in front of you organized and spread out instead of clumped together. I know it’s a bit elementary but some of the best ways to productivity are often the most simple ones. Besides, you are making a serious career out of trading, aren’t you?

The last and final piece of hardware is the most important tool you will have in your arsenal. It is pretty compact so you can bring it anywhere. It’s priceless but the more you look at it, the more valuable money-wise it will become. And over time - you will grow to respect its power and impact on your trading. No, I’m not talking about your autographed picture of myself. I’m referring to that great and often underestimated piece of trading hardware…..the notebook. Yes, the common notebook. “Have you gone insane, Otter? What do you mean a notebook?”, you ask. The reason why you will have a notebook is because you’re going to chronicle every trade you ever make in it’s pages whether they were good or bad, profitable or unprofitable.

Mastery comes with exposure to different scenarios and we can only get a knack of things if we have a log of something to refer to for trading. You will eventually see a pattern in your logs. Some will be straightforward, others will be harder to root out. The main thing is, you will be able to say: “Aha! So 8 times out of 10, when i did “X”, then “Y” happened for “Z” result.” When you are able to get rid of all the bad habits that plague beginners then you are left with…..good habits! And what are good habits you ask?

Good habits are developed market observations that allow you to quantify worst-case scenarios to minimize risk and stay calm knowing the odds of the trade are working in your favor. Sounds simple, right? Well, it is, once you’ve harnessed the power of logging your trades.

Well, there you have it: your simple computer, your spacious table, and your notebook. Now you are officially a member of the trading community. I know this may sound extraneous to the vast majority of traders but if you think about it, trading is a business and if you want to succeed, you’ve got to treat it like a career. Besides, is it any surprise that the vast majority of traders fail? So why would you follow average habits if failure is a result? Many half-hearted souls will label their trading as a career but the truth is, it will be more of a venture because not giving your all in this business will keep you so low that it would be hard to even decipher any signs of a “career” - it’ll be more like “hanging from a thread” if you ask me. Remember, you only get what you give in life and it’s no different for trading - especially trading.

Next time around, I’ll talk about the attitude of a successful trader because as we know, attitude is everything.

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