Day trading can certainly be a lucrative money-making opportunity. Aside from the usual equipment, such as a phone to call your broker and a computer or a reputable news source, here are 5 more tools and services you’ll need.
A smartphone is considered an all-in-one device because it can do a lot of things, and it fits really well as a day trader tool. You can make calls with it, you can download a good trading app like Avatrade and open a browser anytime to check stock news, forecasts, analysis and more.
It’s wise to have your phone with you at all times during day trading hours. You can complete many essential functions and still be able to enjoy a break every now and then with games, social media and streaming services.
A computer is still the preferred tool for day trading, and with good reason. Yes, a smartphone works best when you’re running an errand and have to complete an action but your computer should be the main hardware for most of the day.
To elaborate, your laptop should be powerful enough to run a day trading software, a dozen or so web browsers and several monitors. You can opt for a desktop but it won’t be as portable.
A slow laptop can only frustrate you or end up making you lose money. Invest in newer hardware with multiple core processors and plenty of memory so you can stay in control.
A Reliable Internet Connection
Since most day trading platforms and apps are online then having an internet connection is a must.
Keep in mind that your internet must be solid in terms of uptime and reliability. It must have a consistent speed and you should not have any downtime or problems while using it. It’s understandable that no internet provider is perfect, but customers should never experience disconnections or outages every week.
Day traders should always have a second option when it comes to an internet connection. Remember that your main line can still fail from time to time, and you will want a backup so you can complete trade actions to benefit your portfolio.
A backup internet service doesn’t have to be expensive. It doesn’t have to be as fast as your main one. Several options include a slower connection from another company or even a mobile data from your cellphone service provider.
Timely Market Data
Day traders get their information from several sources, including ones that offer timely market data. Movements in assets and markets are usually shown in a moving graph or table and are updated in real-time. These require a dedicated window or monitor so you can check it whenever you want without having to bring it up.
Different traders will use different stock market data depending on what their portfolios are. Limit the amount of data you’re getting to maximum of three, since they’re mostly the same. If you find a platform that’s lagging behind, don’t be afraid to switch to a new data source.