Daytrading is comprised of two things: art and science.
Some
will disagree with this choice but consider this: The Mac Pro is
outfitted with an 8 CPU cores. Two 2.93GHz quad-core Intel Xeon
processors are beastly and with 32 gigabytes of DDR3 RAM, you're not
going to have a problem running Microsoft Word while browsing the 'net
with Firefox, that's for sure.
What does this power translate into for you? Faster execution times and no lag. Real-time data will indeed be real-time and no matter how many applications and tools you're multitasking with, the Mac Pro will keep chugging along as if nothing ever happened. A lot of traders like to boast about Intel's "i7" chip and their "i7" trading setups, but in reality, Mac Pro is king. And it uses Intel.
Outfit it with a few nVidia graphics cards, load up Microsoft Windows 7 in addition to OS X and you're good to go. Yeah, it costs $10,000 but so what? You're going to be a millionaire!
Dell makes decent monitors and sells 'em cheap.
Pick up three of the 24-inch G2410 displays and rotate them so they sit vertically. This way, you have three separate displays to keep you focused. One for web browsing/news and information, one for your trading software, and another for analytics and charts.
You can never have too much information on hand, so make the most with what you've got by allowing it all to display together seamlessly.
And in your downtime, you'll have one hell of a sweet gaming setup. If PC gaming isn't your thing, then you can at least watch movies in high-def quality.
Bloomberg offers a multitude of solutions but the key ingredient is Bloomberg Anywhere.
It essentially brings a complete Bloomberg Terminal to your computer
whether you're using a web browser or a native OS X or Windows
application. Bloomberg is the de facto industry standard for information
and performing rapid executions. You can even continue trading and
getting information via an iPhone app.
For now, ignore the high monthly cost (~$1500-$2400) and enjoy the data. Bloomberg is really in a class of its own and is hard to compare to other, less costly services. Even Thomson's data terminals are no match for Bloomy's superior service, especially in terms of security.
Those of you who have never used Bloomberg Anywhere before, it works like this: You get a personalized credit card-sized device with a biometric (fingerprint) reader and small LCD display. You visit Bloomberg Anywhere via Bloomberg.com, enter your login info, then hold the device up to the screen after swiping your finger. The device does some weird syncing action with your computer and a random code is generated on the device's LCD. You then enter that code and presto: your computer is now a full on Bloomberg Terminal.
Can't swing the high cost of Bloomberg?
For $40 a month, subscribe to Finviz.com's Elite program. Incredible analytics, heat maps, charts, live stock quotes, and more are all part of the service and it works damn well for the price. If you're into technical analysis, Finviz has a very strong security comparison tool. You can triangulate betas and alphas to your heart's content with the amount of customization Finviz offers. It's also a little more lightweight and robust than say, Google Finance or a similar service. The FOREX section is also incredible, with easy-to-read visuals, etc.
For
the quant and analytical traders out there, you'll appreciate what
MetaStock 11 has to offer. Advanced forecasting options with multiple
indicators, oscillators and pattern overlays, real-time data and news,
and a whole lot more. The makers, Equis, are pretty confident, too:
"Whether you trade stocks, bonds, mutual funds, futures, commodities, FOREX, or indices, MetaStock has the tools you need for superior market analysis and financial success."
The software can be a cheaper alternative to Bloomberg since it only has a one time cost of $1400-$1600 and the monthly subscription thereafter is $100 a month. It's also compatible with the Reuters Data Link service.
Fari Hamzei is known as one of the "Three Gurus" of the CBOE. His subscription website, Hamzei Analytics, will help you get a huge edge over other options traders due to his ability to tweet
and trade. A private HFT twitter stream lets you know EXACTLY what's
going on the in the market and access to a live chat room with other
subscribers lets you get the most out of your experience.
Additionally, Hamzei frequently does webcast seminars and invites guest speakers to discuss options trading. Here's an amazing email Fari sent out the other week just to show you what kind of (non-guaranteed) returns his customers are getting:
HFT Traders took another [approx.] 10.5 handles per contract (net) today in 4 ES trades during the abbreviated trading session !!
That is ~ $550 gain of per contract (each ES handle is $50). Assume $3,000 intraday margin from most brokers. You do the Math. Not too bad for a couple of hours of following me on Twitter.
This
is as fast as your home internet connection is going to get. A 50mbps
pipe for $150 a month will do wonders compared to your ancient cable
modem. Remember: the lower the latency, the quicker the trade and
faster the Internet. If money isn't an issue whatsoever and you're
working in an office space, FiOS business class or a T1 line can really
move those packets of data like never before seen. Still, for anyone not
working for a big operation, FiOS is king.
The big question is what service to use to clear your trades. You want to be using services that provide you serious power:
This
may seem like it has nothing to do with trading, but really, a non-stop
flow of music is essential to keep you from going insane. Sure it's not
available in the U.S. yet but don't let that stop you from shelling out
$15 a month for commercial-free music. Spotify has a boatload of songs -
over 4 million last I checked. With everything from Prince to R.E.M. to
Ratt, it's simply the best service around for music. Period.
If you prefer a web-based alternative that's free, give Pandora or Grooveshark a shot.
You're going to be tired and you don't have the time to be grinding up beans and what not.
Buy some Starbucks/Dunkin/Folgers, throw it in here the night before, and wake up the next morning to 12 cups of instant satisfaction. Besides, imagine the money you'll save for trading if you don't get two large coffees at Starbucks every day.
Let us assume 2 large (venti) lattes at Starbucks a day, 5 days a week, at the price of $4 a latte. That's $40 a week or about $160 a month. Nothing spectacular, but within one month, the coffeemaker pays for itself.
Since
you're going to be in front of a desk from early morning until at least
4pm, you need a chair that's going to keep your back comfortable and
poised.
Herman Miller's Embody Chair is the Ferrari of office chairs and in addition to it being designed specifically for computer users, 95% of its materials are recyclable. Consider if you went to Staples and threw down $120 for a crappy chair that will break in 6 months. It's just not worth it.
Want
to trade with someone else's money? Go work for a prop trading firm.
Make sure that after plunking down all your hard-earned money on the
stuff we've mentioned, you still have enough to get your feet wet and
actually turn a profit.
Don't have the cash after all your purchases? Beg your aunt for $10,000 and promise her a 25% ROI.
Computer: Mac Pro
What does this power translate into for you? Faster execution times and no lag. Real-time data will indeed be real-time and no matter how many applications and tools you're multitasking with, the Mac Pro will keep chugging along as if nothing ever happened. A lot of traders like to boast about Intel's "i7" chip and their "i7" trading setups, but in reality, Mac Pro is king. And it uses Intel.
Outfit it with a few nVidia graphics cards, load up Microsoft Windows 7 in addition to OS X and you're good to go. Yeah, it costs $10,000 but so what? You're going to be a millionaire!
Three Dell 24 inch Widescreen Monitors
Pick up three of the 24-inch G2410 displays and rotate them so they sit vertically. This way, you have three separate displays to keep you focused. One for web browsing/news and information, one for your trading software, and another for analytics and charts.
You can never have too much information on hand, so make the most with what you've got by allowing it all to display together seamlessly.
And in your downtime, you'll have one hell of a sweet gaming setup. If PC gaming isn't your thing, then you can at least watch movies in high-def quality.
Bloomberg Anywhere
For now, ignore the high monthly cost (~$1500-$2400) and enjoy the data. Bloomberg is really in a class of its own and is hard to compare to other, less costly services. Even Thomson's data terminals are no match for Bloomy's superior service, especially in terms of security.
Those of you who have never used Bloomberg Anywhere before, it works like this: You get a personalized credit card-sized device with a biometric (fingerprint) reader and small LCD display. You visit Bloomberg Anywhere via Bloomberg.com, enter your login info, then hold the device up to the screen after swiping your finger. The device does some weird syncing action with your computer and a random code is generated on the device's LCD. You then enter that code and presto: your computer is now a full on Bloomberg Terminal.
Finviz Elite
For $40 a month, subscribe to Finviz.com's Elite program. Incredible analytics, heat maps, charts, live stock quotes, and more are all part of the service and it works damn well for the price. If you're into technical analysis, Finviz has a very strong security comparison tool. You can triangulate betas and alphas to your heart's content with the amount of customization Finviz offers. It's also a little more lightweight and robust than say, Google Finance or a similar service. The FOREX section is also incredible, with easy-to-read visuals, etc.
MetaStock Pro
"Whether you trade stocks, bonds, mutual funds, futures, commodities, FOREX, or indices, MetaStock has the tools you need for superior market analysis and financial success."
The software can be a cheaper alternative to Bloomberg since it only has a one time cost of $1400-$1600 and the monthly subscription thereafter is $100 a month. It's also compatible with the Reuters Data Link service.
Hamzei Analytics Subscription
Additionally, Hamzei frequently does webcast seminars and invites guest speakers to discuss options trading. Here's an amazing email Fari sent out the other week just to show you what kind of (non-guaranteed) returns his customers are getting:
HFT Traders took another [approx.] 10.5 handles per contract (net) today in 4 ES trades during the abbreviated trading session !!
That is ~ $550 gain of per contract (each ES handle is $50). Assume $3,000 intraday margin from most brokers. You do the Math. Not too bad for a couple of hours of following me on Twitter.
Verizon FiOS
Brokerage
Direct Edge:
One of the biggest players in the world of high-frequency trading (HFT)
and direct market making. Allows traders to connect directly to major
brokerages and institutions for performing block trades. Looking for
flash orders so you can get the edge? This is where it can happen.
Lime Brokerage: Lime also specializes in anonymous HFT, as well as algorithmic trading. A variety of tools and APIs are available for the trader who's also a computer programming or stat freak. Fully customizable algos and GUI-based building gives you a large range of options for your trading strategy.
Liquidnet: An alternative trading system that lets you trade directly with others looking to skip the middleman or exchange. Offers dark pools of liquidity and anonymous quotation systems. If you want to make a trade without the public knowing (in case you're trying to move a market), Liquidnet will allow you to accomplish this.
Lime Brokerage: Lime also specializes in anonymous HFT, as well as algorithmic trading. A variety of tools and APIs are available for the trader who's also a computer programming or stat freak. Fully customizable algos and GUI-based building gives you a large range of options for your trading strategy.
Liquidnet: An alternative trading system that lets you trade directly with others looking to skip the middleman or exchange. Offers dark pools of liquidity and anonymous quotation systems. If you want to make a trade without the public knowing (in case you're trying to move a market), Liquidnet will allow you to accomplish this.
Spotify Premium
If you prefer a web-based alternative that's free, give Pandora or Grooveshark a shot.
Cuisineart DCC-1100 12-Cup Programmable Coffeemaker
Buy some Starbucks/Dunkin/Folgers, throw it in here the night before, and wake up the next morning to 12 cups of instant satisfaction. Besides, imagine the money you'll save for trading if you don't get two large coffees at Starbucks every day.
Let us assume 2 large (venti) lattes at Starbucks a day, 5 days a week, at the price of $4 a latte. That's $40 a week or about $160 a month. Nothing spectacular, but within one month, the coffeemaker pays for itself.
Herman Miller Embody Chair
Herman Miller's Embody Chair is the Ferrari of office chairs and in addition to it being designed specifically for computer users, 95% of its materials are recyclable. Consider if you went to Staples and threw down $120 for a crappy chair that will break in 6 months. It's just not worth it.
Capital
Don't have the cash after all your purchases? Beg your aunt for $10,000 and promise her a 25% ROI.
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