Expensive Trading Set-Up = Profitable Trader?

[DHOHHI]

Quote from Pension_Admin:

Sometimes, I find that I would trade better when I keep things simple. Trading with just one monitor set-up helps me to avoid a lot of market traps.

If I have like multiple monitors with multiple charts on them, I would definitely overtrade and cause some serious trading errors.

That was my point -- simplicity!

The more monitors the more (potential) distractions. I prefer finding what I think are the highest probability trades and focusing on them.

 

[BSAM]

Quote from marketfly:

My buddy trades on a five year old laptop and makes six figures every year. Most people I have met with 6+ monitors and high tech computer struggle to break even.

And they just kain't figger out why. Trading is simple, (once you understand a few things.....that's the hard part. Really hard.)

 

[Indrionas]

Quote from Pension_Admin:

Is there a correlation? Is there any profitable trader out there who is just using a modest set-up?

I don't think it has any correlation with profitability (whichever way you define it). But it sure correlates with trading style. If you're daytrader/scalper that makes tens-hundreds-thousands trades per day in many different instruments then you probably wish to have as many monitors as possible and a very stable machine, probably with a few simultaneous ISPs. If you make 1-2 trades per day (or less) and spend 15 min-2 hours per day looking at the markets, you can get by with a crappy PC.

 

[osorico]

Expensive Trading Set-up = Profitable Trader?

All the responses thusfar have been about computer hardware. And mentions of no correlation (based solely on computer hardware), are likely correct.

There are other things that go into a "trading set-up" that cost...
1) Backup internet connection
2) Backup quote feed
3) Battery Backup
4) Backup Brokerage account
5) Business structure

I will go out on a limb and say the trader who prepares for exogenous shocks to business, and operates within a tailored business structure is more profitable than the trader who considers a trading workstation the most important aspect of a trading set-up.

BTW; what does "expensive" mean? What does "profitable" mean?

Osorico

 

[Pension_Admin]

Quote from osorico:

Expensive Trading Set-up = Profitable Trader?

All the responses thusfar have been about computer hardware. And mentions of no correlation (based solely on computer hardware), are likely correct.

There are other things that go into a "trading set-up" that cost...
1) Backup internet connection
2) Backup quote feed
3) Battery Backup
4) Backup Brokerage account
5) Business structure

I will go out on a limb and say the trader who prepares for exogenous shocks to business, and operates within a tailored business structure is more profitable than the trader who considers a trading workstation the most important aspect of a trading set-up.

BTW; what does "expensive" mean? What does "profitable" mean?

Osorico

Sorry for not making it more specific. The expensiveness that I was referring to is the type that is visible.

A profitable trader is a trader who is consistently profitable through experience and through proper risk management.

I totally agree with you that a trader should be prepared for any emergency that may arise by properly investing in the risk management technologies.