Tuesday, 17 March 2009

How to Start Online Trading?

How to start online trading?
Before you start online trading you want to make sure that you are on a level playing field for all online traders in regards to the equipment and software they are using to tackle the markets. If a trader can start this part right correctly, he is at least going to have a fighting chance to compete on a level playing field with everybody else. If a trader is behind the technology curve, he is going to be trading at a distinct disadvantage. This is the easiest part of a solid trading plan, and the first step to start online trading.
How much money do you need to start online trading?
The amount and type of trading equipment that a trader has is going to depend a little on their own financial resources, and a lot based on the type of trading they are doing. Top of the line systems with three or four monitors are available from companies like Dell on a leasing program for less than $150.00 per month, so cost isn't a huge issue. If a trader has a computer that is more than 3 years old, he needs to upgrade some of its components or just get a new one.
What hardware do you need in your computer to start online trading?
The most important component of a trader's computer is the RAM. This is the amount of memory available while running applications in real time. A trader with an older computer will definitely need a boost here, as this has a major impact on how fast he will be receiving his quotes and other live data. This is also the most expensive part of the computer, though prices continue to drop. As I'm writing this on February 7, 2005, there are three ads on the Internet that boast top of the line computers for $399. These are equipped with a nice 2.4 gigahertz processor, a fat 40 Gigabyte hard drive . . . and a puny 256 megabytes worth of RAM. This is inadequate for a trader who would like to start online trading. The RAM on a trader's computer should be at least 1 gigabyte, and nearly all basic systems come with much less than that. Realistically, to start online trading, a trader is going to spend about $2500.00 for a top of the line computer with at least 1 gigabyte of RAM, multiple flat screen monitors and a solid multi-monitor ready graphics card. There are companies out there that market "trader computers" for a lot more money, but the exact same computer is available at Dell for much less. The main thing to keep in mind is that a online trading computer should be specifically setup for trading, and have a minimum of "other stuff" going on.