The best day trading setup is going to be one that suits your individual trading style and preferences. Some day traders prefer a simple, straightforward approach using only a few basic indicators, whereas others may use a more complex system with a large number of indicators to find trading opportunities.
Whatever your approach to trading itself, there are a few key things to look for in a good day trading setup that will make your trading that much easier.
What you need in your day trading setup
If you are considering day trading professionally, you will need to treat this as a business, and therefore set up your work station, and equipment accordingly. Below is a list of what you will want to consider forming part of your day trading setup both in terms of hardware and software, and from your most important piece of equipment (yourself) too!
- A reliable computer: This is vital for running your trading platform and charting software smoothly.
- A good internet connection: For obvious reasons, you need a fast and reliable internet connection for day trading.
- Multiple monitors: Many day traders like to have multiple monitors so they can see more information at once.
- A comfortable chair (or a standing desk): You will be at your desk for long periods of time, so it is important to have a comfortable chair, or a standing desk that you can use to get the blood flowing throughout the day.
- Trading software: There are many different types of software available for day trading, and it is important to find one that suits your needs.
- A demo account: Within your overall day trading setup, it is a good idea to set up a demo account with a broker to get familiar with the new markets or strategies.
- An analytical mind: You need to be able to think quickly and make decisions based on the information you are seeing in front of you.
- Good organizational skills: You will have a lot of information to keep track of, so it is important to be organized.
- Patience: The markets can be volatile, so you need to be patient when waiting for trades to play out.
- Discipline: Once you have a plan, you need to stick to it and not let your emotions get in the way of making trades.
- Risk management: You need to be aware of the risks involved in day trading and have a plan for managing them.
If you are planning on day trading professionally, you will need to make sure you have all of the above set up before you start trading. This will help you trade effectively and minimize the risks involved.
Being able to visualise your trades is a vital part of your day trading setup
First, you want to make sure that your charts are clean and easy to read. This means most likely using a simple charting program like MetaTrader 4 or 5, or TradingView.
Second, you want to make sure that your indicators are set up in a way that makes sense for you. For example, if you’re using MACD, you might want to set it up with different parameters than the default settings.
You will likely want to have multiple screens, so that you can see multiple timeframes or even multiple markets at the same time. I find it useful to have one screen focused on macro, or fundamental news, with the other 2 on charts. This can help you find more trading opportunities and keep up with market news from one side, with your charting and indicators on another.
Your internet speed can have implications for your day trading as well. If you’re using a slow internet connection, you may find that your orders don’t get filled as quickly as you’d like. A fast internet connection can help you avoid this problem and allow you to get the best fill possible.