What is the Benefit of Using a Day Trading Computer? Three Facts

In August, Bloomberg ran an article detailing how computers have taken over trading, and the implications this change has had on markets. Before the advent of stock computers in the 1960s, there were nearly 70 steps involved in the purchase and selling of a security, and every step had the risk of human error. Computers eliminated billions of dollars lost to paperwork.

Today, some errors still persist. Why? The problem is that some brokers are not investing in stock trading computers, and are instead using general use computers. These do not create market problems, but rather, individual financial problems. Here are three things you should know about trading computers.

1. How They Differ

How much of a difference could a trading specific computer possibly make? The average computer has difficulty following real time market data, which is fine, since most users are not in any way affected by information coming a couple of seconds late. For the trader, though, those seconds could translate to hundreds of dollars lost. The small time buffer can affect selling and buying executions, which will throw off loss and profit results.

2. How Much Does a Day Trading Computer Cost?

The price of a trading computer depends on your specifications. Always look for at least 8GB of RAM for storage, though 16GB is ideal, so that your computer has all the memory necessary for running trading platform applications. Low end computers can cost around $1,200, while upscale versions will run at $2,000 or higher. More expensive computers are capable of supporting a larger number of screens. Some professional traders have upwards of eight screens in order to track different quotes, charts and time tables all at the same time.

3. What is the Best Laptop for Stock Trading?

Laptops are not often ideal for trading because they are built for size, not speed. However, a laptop can be good for travel, as well as being a backup in case, for some reason, your main computer were to crash. Did you know that your processor needs to rank above a certain score for you to even trade with it? For a trading computer laptop you will want top of the line, go for a core i7. Laptops specifically formulated for trading are quicker than a traditional laptop, and for this reason, the best and most expensive models will definitely be above the $2,000 mark.

What do you think the best laptop for stock trading is?