Most traders obsess over charts and strategies. But if you forget this one thing, it could blow up your entire account.
My name's Eddie Z, and let's talk about something almost no trader ever thinks about. And that's your backup plan. Because one power outage, one internet drop, one PC fail, and it could cost you thousands of dollars, and you won't see it coming until it's too late.
I am going to share with you the Ultimate Trading Hardware Backup Plan so you can stay protected no matter what happens.
Surge Protection
Let's start with the surge protection. Most traders think, Eddie, I've got a power strip. I'm good. But here's the truth: You need to protect every single wire coming out of the wall, not just your power cable.
I live in South Florida, which is the lightning capital of the USA, and I've lost more modems and routers to lightning strikes than I care to admit.
One lightning strike and boom, your router's fried, and your computer can be fried.
So here's the rule. If it comes out of the wall: a power cable, a coax cable, you know, like for cable internet, or a direct fiber ethernet cable, it needs to run through a surge protector first.
Not just any cheap strip from the hardware store. Look for one that's rated at least 2000 joules of protection. That's the level I personally recommend.
Lower than that, and you're taking a chance that it won't absorb a real surge.
Power Outages
Next up, power outages. If you've ever been in a trade and suddenly the power cuts out, you know the panic that sets in. You're blind to the market. You can't manage your positions, and you get expenses fast. That's where a UPS, an Uninterruptible Power Supply, comes in.
Here's the mistake I see all the time: People plug everything into one little UPS, and then they hope for the best. Bad idea. The power goes out, and then the computer goes out just 60 seconds later.
Here's how I set it up: I use multiple UPS units.
UPS #1 - I just plug in my trading computer exclusively.
UPS #2 - At least two of my primary monitors.
UPS #3 - The modem and the router. Make sure those are covered as well.
I highly recommend that each UPS be at least 950 VA. VA stands for Volt Amps. All the UPSs say right on the box what size they are.
Anything smaller and you won't get enough runtime to actually close your trades.
This setup gives me 10 to 15 minutes of juice to exit positions and shut everything down safely.
BONUS TIP: You definitely want to test your UPS units every couple of months. Just unplug them from the wall and make sure that your system stays live. Don't assume; verify it every couple of months.
Here’s something that most traders miss: many UPS brand manufacturers offer something called a Connected Equipment Warranty. If your PC or your monitors get damaged while properly connected to these units, they'll pay to replace the gear.
Stick with reputable brands like Cyber Power or APC, and follow their surge protection rules.
If you're finding this helpful, make sure you grab my Complete Guide to Trading Computers. It's totally free, and it walks you through exactly what to look for when you're buying a computer for trading. All the tweaks and optimizations and things we're talking about today are in the guide.
No Connection
Even if your power is fine, your internet can still go down. Ask me how I know. Here at my office, I run both Xfinity, which comes through the cable line, and AT&T Fiber. If one goes down, I switch to the other instantly.
I realize not everybody has two broadband options. In that case, use your phone's hotspot or a dedicated 5G hotspot device as your backup.
Remember, you don't need blazing speed in an emergency. You just need a connection that's stable enough to close your positions and manage risk.
Ultimate Malfunction
Now, let's go one level deeper. What if your main computer fails completely? You accidentally spill coffee on it. The hard drive fails. It happens. Electronics do fail, unfortunately.
You don't need a monster machine as a backup, just a reliable PC or a laptop with your trading platform already installed.
Here’s my recommendation: Turn that backup machine on at least once a month to run Windows updates and update your trading apps. You don't want to have to do those updates in an emergency.
Last Line of Defense
Now your very last line of defense is your phone. Download your broker's mobile app and make sure you know how to log in and how to place trades on that app.
If the power, the internet, and your PC all fail at the same time, you can still get out of the market in under a minute.
Pro-level Plan
And here's one more pro: move back up your trading data. You know your chart layouts, your templates, your watch lists. All of it should be saved to the cloud or an external drive.
You can use Google Drive or Microsoft OneDrive. If your main drive fails, you can be back up and running in minutes, not hours.
Checklist Review
- Surge protect every line with at least 2000 joules of protection
- Use multiple UPS units with 900 volt-amps or higher
- Get a backup internet connection, like a second ISP or a hotspot
- Have a backup computer and turn it on monthly for updates
- Install mobile access to your broker
- Use cloud or external backups for all of your templates, watch lists, and layouts
Set all this up, and you will trade with confidence, even when the unexpected happens.
I personally promise to keep you in the know on the technology of trading, and grab my Complete Guide to Trading Computer here.
