7 Biggest Mistakes Traders Make When Buying a Trading Com...

It doesn't matter if you are a veteran or a new trader. Traders of all kinds seem to make the same mistakes when buying a trading computer.

Hi everybody. This is Eddie Z from EZ Trading Computers, and you are watching my educational video series on how to buy a trading computer.

My goal in this series is to educate you, inform you, and hopefully save you close to a thousand dollars by sharing the 7 biggest mistakes traders make when buying a trading computer.

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MISTAKE #1 - Trading on an old, outdated computer system

Did you know that over 70% of today’s full-time traders fail to make as much money as they could because they are running old computers and old operating systems such as Windows 10 (or worse Windows 7)?

These old systems can create a tiny lag in market data and the high-tech, high-frequency traders are eating your lunch.

Most traders don’t realize that the mainstream processors from just two years ago and low levels of RAM can’t keep up with today’s mega-levels of data flow. This leads to stale market data and something called slippage.

Slippage is when you enter an order, but the price you get filled at is significantly different from what you expected. Even just a half-second delay can throw off your entire trading system.

This is mistake number one, trying to trade on an old, outdated computer system.

MISTAKE #2 - Trading on a low-end laptop computer

The second biggest mistake I see traders make on a regular basis is trying to trade on a store-bought, low-end laptop computer.

While your laptop may seem fast in loading web pages and connecting to the Internet, 95% of these machines were designed for miniaturization, not power and speed.

Additionally, you are limited by one monitor and a touchpad. I don’t care how fast you think you are with your finger on the touchpad, you will never compete with how fast you can navigate on a mouse. So lack of processing power and constant clicking from window to window with a lack of navigation speed can seriously affect your results.

MISTAKE #3 - Going to a local retailer

The next big mistake I see traders make is trying to save money by going down to a local retailer like Best Buy or Walmart. When you go into these stores, you’re basically on your own. Do you really think these kids who work there understand what your needs are as a trader? You’ll probably be drawn to the lowest price machines, and you’ll wind up walking out the door a little bit confused with a computer that is not cutting-edge technology. Remember, trading is a profession and a skill. You wouldn’t see surgeons buying their instruments at Walgreens or a professional tennis player buying his tennis racket at Walmart.

MISTAKE #4 - Buying a mass-manufactured machine

Another mistake that goes with the previous one is buying a mass-manufactured machine like an HP, a Dell, or even an Acer, and thinking you’re getting quality. The thing about these companies is that they use lower-quality components they can buy in bulk. You have to realize that as traders, we are very heavy computer users, much heavier than the average user. We need the highest quality, fastest computers around. We need the Mercedes Benz of computers. HP and Dell are like Dodge and Chevy. Another thing to consider about these mass-manufactured machines is that they usually only come with a one-year warranty. And their tech support... When was the last time you tried calling Dell or HP’s tech support? I think you know what I mean.

MISTAKE #5 - Not having backup systems

Next mistake. Not having backup systems when the inevitable happens. What do I mean? A power outage, an Internet outage, or a power surge. As a full-time trader myself, I can tell you that when something interrupts your data flow and you’re trading a position. It’s a very frustrating experience to have the Internet go out or the power go out. Simple things like a battery backup and a redundant Internet connection can solve this problem.

MISTAKE #6 - Not doing enough research

Another huge mistake I see traders make is not doing enough research into finding out what kind of technology they need. Instead of going to Best Buy, they wind up at some super-slick website, buying a trading computer for thousands of dollars more than they need to. Believe it or not, there are companies out there that are selling trading computers and taking advantage of your lack of knowledge. I recommend you educate yourself so that you do not get ripped off.

MISTAKE #7 - Not keeping a calm state of mind while trading

Undoubtedly one of the absolute biggest mistakes I see traders make constantly is not realizing the importance of keeping a calm state of mind while trading. If you haven’t already heard, at least 80% of being a successful trader is your psychology, your state of mind. If you get pissed off at your computer or bad execution, you’re going to trigger your fight or flight response. I promise you’re going to make bad decisions and fatal trading mistakes. The last thing you want is having a computer-related issue trigger you.

ADDITIONAL RESOURCES

In upcoming videos, we are going to talk about the most important components of a great trading system. They include the processor, the motherboard, RAM or memory, storage devices, and the backup systems.