While theoretically all you need to become successful at trading is a telephone line or a computer with internet access (depending on your broker). In an ideal world you would have a number of other resources at your fingertips. I have decided to outline what I see as the ideal setup for an independent trader of either Spread Bets or CFD’s. Some things on my ideal list are one off purchases others involve various types of subscription packages.
- A computer workstation for trading. While it is possible to trade on a laptop or conventional desktop computer with an internet connection. The most desirable option is a purpose built computer workstation for trading with a powerful hardware and multiple screens. The benefits of such a workstation won’t seem immediately apparent. But when you are monitoring multiple charts at the same time it soon becomes clear why such a workstation would be desirable.
- The best broadband connection available. Broadband connections are now pretty much a commodity in most of the developed world, the faster the connection the better allowing for the best access to your service provider and real time data. In theory a better connection should improve the execution of your trades.
- Trading Software. While trading software often comes provided by the trading company you use. It is often desirable to have some other pieces of software to aid your trading. Including software for viewing historical data and software like Excel to track your day to day performance.
- Education, Education, Education. The growth of personal derivative trading has also seen a huge rise in the number the resources aimed at this market. While not all resources are created equally there are many valuable resources out there including courses, books, seminars and newspaper and magazine subscriptions. These can really add your knowledge base and improve you as a trader.
- Some office space. While the majority of independent traders trade from a home office. Some traders may opt to rent some office space in order to undertake there trading operations. There are various benefits to this including less distractions and making you take a more professional attitude towards your trading.
- While not usually considered a part of a trading setup, time is certainly an important factor. The amount of time you can commit to trading can certainly affect the results you get from your trading activities. The more time the better, ideally you want to immerse yourself in the markets and the instruments in order to get the best returns from your trading activities.
All of these things would make for a pretty ideal setup for an independent trader, while not all are strictly necessary it gives you an idea of what an ideal setup might look like.