As modern day trading is electronic, the exchanges are run by computers, and are accessible via the Internet, so day traders can work from almost anywhere in the world using only a few tools and services. These tools are things like a computer, Internet access, and a telephone, so most people already have some of the tools that day traders use. The remaining tools are services that are specific to day trading, such as a day trading brokerage, and market data, and these services are also available via the Internet.
Hardware and Software
The following tools are the hardware (such as a computer), software (such as charting software), and other physical items (such as a telephone) that are needed for day trading. Each item is described in detail, with an explanation of when and how the item is used during trading :
Services
The following tools are the services (such as Internet access) that are needed for day trading. Each service is described in detail, with an explanation of when and how the service is used during trading, and suggestions for where the service can be found :
Recommendations
Whether you are a new day trader, or an experienced day trader, I recommend that you use the following choices for the above mentioned tools :
- Computer : A laptop computer, running Windows XP, with as large and high resolution screen, as possible
- Internet Access : ADSL with at least 256 Kbps down, and 128 Kbps up, with unlimited traffic and connection time
- Backup Internet Access : A mobile phone with full Internet access
- Telephone : A mobile phone
- Brokerage : Interactive Brokers
- Trading Software : Trader Workstation and Bracket Trader
- Charting Software : Sierra Chart
- Market Data : Interactive Brokers' market data
These choices will provide the basics that are needed to start day trading, while still allowing more experienced day traders to expand into multiple markets, advanced trading systems, and even automated trading, without changing their tools, and at no additional cost.
