I have the strategies. I have the plan. I have the education. I have the experience. Now what type of computer should I have for trading? This is a question I get from time to time when students complete their fourth coaching session. The best answer? It depends! Every trader's situation and plan is unique, but there are a few good rules of thumb.

The first question should be, what do you really need? What are your software requirements, and how active will you be as a trader? Stock or options traders making trading decisions using end of day data have very simple requirements. As long as the computer meets the minimum requirements of your charting software, and can connect to the internet, you're set.

A day trader can potentially push the limits of an older computer. In addition to knowing the minimum requirements of your charting software and trading applications, I would encourage all day traders to use at least 2 monitors. You might be able to get away with one, but this is an easy upgrade and minor investment that will make a world of difference. Almost all newer laptops can connect to an external monitor, and many desktops have dual monitor cards that come standard with middle to higher end systems. You might have dual monitor capability without knowing it!

Using Trade Navigator, I like to run my broker's trading platform on one monitor, and my charting platform on another. Talking to friends at Genesis Financial Technologies, they had some good recommendations on what to look for when purchasing a new computer:

• Buy a computer that your kid would like to play games on. Computers for gaming will typically have fast CPUs, great memory and dual video cards. If you're not computer savvy and don't want to worry about specifics, this would be a good rule of thumb.

When looking for a computer consider the following minimum requirements:

• 2 GHz Processor
• 3 GB RAM
• 256 MB of video RAM
• 80 gigs Solid State Hard Drive
• DVD drive
• Dual monitor video card

(For those using Trade Navigator, this is minimum recommended, not minimum requirements to run TN charting software.)

NOTE: Sometimes charting software and trading platforms only run on older operating systems. If you are in the market for a new computer, make sure that your software is compatible when there is a new operating system out on the market (some trading software is still running on XP and not compatible with Vista).

For some traders, the specifics above wouldn't cut it, but I want to stress that the computer does NOT make the trader. The trader makes the trader...bottom-line! You can spend thousands of dollars on all of the bells and whistles and still lose money in the markets. If you find that your trading requires more sophisticated systems or additional monitors, you might take a look at the following websites:

http://www.tradingcomputers.com/

http://www.multi-monitors.com/

Both companies offer trading computers and multiple monitor options for traders.

I also discourage using a wireless or cellular internet connection when day trading.  It is too easy for the signal strength to fluctuate and give you latency when reading your charts or entering an order into your trading platform.  To be safe, always have a hard wired connection to your T1, DSL or cable modem outlet. 

I personally have 4 monitors, 2 computers, and a laptop. I dedicate one computer for trading, one computer for coaching, and my laptop serves as a backup, gives me portability and helps with internet communication. Do I need all of this? No. But as a trader and a coach this is the best solution I have found for my trading needs. I also have 2 separate internet connections and backup power in case of a drop in Internet or power. If you're trading 1 contract and just getting started, a cell phone and your broker's number or trading desk is probably all the backup you need.

Here's something I don't have, but might provide peace of mind if you find drops in your internet connection common:

http://www.tradingcomputers.com/TCrouter.html

The sky is the limit when it comes to the money you can spend on a computer and your trading office infrastructure. Know the minimum you need to run your charts and trading platform, and go from there. In the end, a more advanced trading workstation will not make a losing trader a winner, but it can give a winning trader more versatility and peace of mind.

Feel free to comment on this blog and share your trading setup, or recommendations you have for traders looking for the right trading computer!