TOOLS OF THE TRADE

TOOLS OF THE TRADE (pun intended)
The next few sections will discuss some of the tools you will need to scalp
trade.forex sato
YOUR COMPUTER
Obviously you’ll need the standard tools such as a trading account and charts
(we’ll get to those shortly), but here is a topic I haven’t previously discussed
in my other eBooks – your computer.
With most Forex trading techniques you can make do with a lame computer
and slow Internet (dial up), however with the fast paced world of Forex
scalping you really do need a reliably quick computer.
As a Forex scalper you need your charts to display the most up to date price
possible, and you need your brokerage software to execute a trade
promptly. Even with the best computer and a screaming fast Internet
connection you’ll still have some lag time (not to mention how long it takes
for you to physically move your mouse and click to enter a trade). Often as a
scalper you’ll experience missing out on a few pips (of lost profit) because of
slight inefficiencies (somewhat frustrating at times), but if you have to deal
with a painfully slow computer and a molasses Internet connection speed then
you’ll soon be tempted to introduce your computer to a sledge hammer. For a
scalper lost seconds means lost pips which means lost profits. Even in a
single day of trading this can add up to HUNDREDS of dollars, even
thousands, of missed profits.
The first thing to do to ensure that your computer is running your trading tools
smoothly is to NOT have other programs running on your computer while
trading. Having many programs open eats up your computer’s resources,
which can mean that your charts aren’t refreshing as fast, and it may take
longer to execute a trade. If you must listen to music then please turn on the
radio, don’t listen to MP3s on your computer, or God forbid, DON’T be
streaming music off of the Internet unless you have a very fast computer with
High-Speed Internet (even then it’s still better not to).
Chances are your computer itself is good enough to scalp trade with (unless
you are using something that is 10 years old), however you may find that it
starts running slower over time. If you ever find that your computer is
running like molasses, or much slower than you remember from the past then
it may be time to reformat your computer. It is generally a good idea to
reformat your computer every 6 months (kind of like going to the dentist) to
keep it running smoothly. If you don’t know how to do this then invite a techsavvy
friend over for a few beers to help you out with this.
If you think that your computer sucks then perhaps you should consider
buying a new one. You don’t have to spend a fortune buying the best
computer available, as generally the cheapest computer you can buy at your
favorite high-tech toy store is more than adequate for the purpose of scalping
with. You can always justify the expense by the profits it’ll make for you.
Your Internet connection is also important. Folks, I can’t understand why
anyone would still use dial-up for Internet access (unless it is all that is
available in your area) when High-Speed is not that much more expensive
(typically around 2 to 3 times the price of dial-up). Just the thought of surfing
the web on dial-up stresses me out let alone trading with it. If it is all you
have available then it’ll work for you, but seriously, if you can have high
speed Internet available then just pay the extra $20 or $30 per month. After a
few days of surfing the web you’ll wonder how you’ve ever done without it,
and surely each month you’ll catch at least an extra couple of pips that’ll more
than pay for it.