It’s tempting to choose a wireless Internet connection rather than running a cable for wired Internet. Does it matter for trading?
So think about this. You just set up your brand new EZ Trading Computer, and you just upgraded to the latest and greatest super-fast wireless internet in your area. And you’re super excited cause you’ll no longer experience internet lags, data bursts, or slippage.
Then you go out and buy the newest and most up-to-date wireless router. You get everything set up. You go to speed test.net to check your internet speed and—what the heck, your speeds aren’t even half as fast as what you’re paying for.
WIRED INTERNET vs. WIRELESS
Now, why is this happening? Is the wireless internet in your house slower than if you were wired directly into the router?
Well, the quick and dirty answer is Yes. Wireless is almost always going to be slower than wired. The fastest connection you can have is to stay wired. Here are a few reasons why.
First, when you use an Ethernet cable, which is also known as a network cable, the copper wire that’s inside that cable is wrapped in very special materials that protect the signal that the wire is transmitting.
In the case of Ethernet cable, this means you can run a line as long as 300 feet before the signal starts to fall apart and degrade.
Second, the Ethernet cable is 100% dedicated to providing you with an internet signal, with no interference. It runs directly from your router into the computer.
With wireless, you’re broadcasting radio signals basically in every single direction. And those signals have to try to penetrate the walls of your home.
And even worse, those signals compete with other wireless traffic such as your wife’s cell phone signal, your daughter’s laptop, and your son’s iPad, not to mention all of your neighbors’ network traffic. This interference reduces the quality of the signal and can even cause dropped connections.
The next biggest reason wireless is slower is because of something called spectrum competition. In other words, your wireless router many times will be sending signals to other devices on the same channel or the same frequency as your trading computer. And this forces your router to sort out all those signals.
Now, without getting too technical, the strategy your Wi-Fi router uses to sort out these signals is inferior to the way a wired router distinguishes between devices. And this leads to slower transmission or something called latency in both directions.
Lastly, believe it or not, your Wi-Fi router’s antenna can only be doing one thing at a time. It can either be sending a signal or receiving a signal. It cannot do both at the same time. Ethernet cable, on the other hand, has the ability to transmit in both directions simultaneously, thus reducing latency and improving speed.
So in conclusion, your wired or Ethernet cable connection is almost always going to be faster than a wireless connection. And as a trader, you really want to be wired to that router as often as you possibly can, even if you’re trading on a laptop.
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Thanks for watching, and if you haven’t already, please feel free to download our Complete Guide to Trading Computers by clicking the link. This guide is packed with great tips so you can totally optimize your trading experience.
My name’s Eddie Z. Thanks for watching, and I’ll see you in the next video.