Archive for the ‘Getting Started Online Trading’ Category

Online Trading Software

Thursday, January 3rd, 2008

 Date: January 03, 2008

Time: 10:10

From:  Way West of Wall Street 

Dear Friend & Subscriber,

The software that you need for online day trading and trading in general comes down to three basic components.

Once again everyone has their own preference when it comes to brokerage services, financial and market information, and charting software.

The first piece of software you will need is from your brokerage account.  There are many to choose from and everyone has pros and cons.  I look for ease of use and a competitive cost structure.  Most of these firms offer online access through a web browser so there is nothing to download which is very nice.  I would recommend staying with a main stream broker that has been established from over 10 years.

The second and third piece of software that you need will be a data feed and charting software package.  These come in all shapes and sizes and can be a bit confusing.  However, it becomes very easy to sort through the choices if you can answer these three questions:

  • 1) What Kind of trading do you do? (Day Trading, Swing Trading, Long Term, Short Term, etc)
  • 2) What do you trade? (Currencies, Stocks, Options, Futures, etc.)
  • 3) How much are you willing to spend per month in fees?

There are many charting packages and data feed that are available for free on the internet.  They are usually delayed by 20 minutes or more.  If you are doing longer term trades, these kinds of services are fine.

If you are day trading or scalping you will need real-time financial and market information and a charting software package. 

These packages cost anywhere between $99.00 to $490 per month depending on the markets and features that you need.

The data feed and charting package that I use cost me $150 per month but it is well worth the price.

I recommend that you purchase your real-time financial and market information and charting service from the same vendor to insure that you charting software is getting the correct data.

You will also need to make sure that your brokerage and real-time financial and market information that you are buying includes the products that you want to trade. 

For example, if you want to trade the Russell 2000 E-mini (ER2), you want to make sure your brokerage account lets you trade this future and your real-time financial and market information provider can provide you with the data.

Sincerely,

Michael MeAngelo

Tags: , , ,
Posted in Getting Started Online Trading | No Comments »

Online Trading Computer Equipment

Wednesday, January 2nd, 2008

Date: January 02, 2008

Time: 13:59

From:  Way West of Wall Street 

Dear Friend & Subscriber,

I have been getting a lot of questions on my computer set up for online trading.

First of all, the computer hardware set up has very little to do with success (i.e. profitability) online day trading.

I am constantly amazed at all of the multiple monitors that online traders hook up to their computer systems.  I am also amazed at the amount of CPU’s and other goodies that are integrated into the systems.

There are several companies that cater to this niche computer market because they know that when people first start online trading, they go into a buying frenzy and spend big bucks to get a system, “because it is built for online trading.”

Beginning online traders tend to buy the latest technology at a high price points and use the excuse that they need it to make a profit.  This brings me to a point that you should write down read before you buy any computer system for your online trading business.

Point Number One:

It’s not the computer equipment or setup; it’s the trader, that makes money online trading.

Now with that out of the way, Let me make a few points.  Your internet connection should be with a reputable company.  If you are going to spend some money, this is the place to do it.  If you cannot connect to your online data services or your brokerage accounts, you cannot trade. 

Also, why you don’t need the latest and greatest technology, you also cannot use the oldest and worst computer from 1995 still running Windows 95.

A good rule is to check with your charting/data feed and even your high speed internet provider and see what minimum specifications they recommend and make sure you are above them.

Let’s begin to look at all of the items that you need.  This is a very simple list so you are not overwhelmed.

  • 1) A reliable high speed internet connection. (DSL, Cable, Satellite),
  • 2) A Computer over the minimum specifications as stated by your charting/data feed company. (I like to have at least 4GB to 6GB of memory on board since I have many windows open at once)
  • 3) A monitor that is at least 19 inchs. The bigger the better. I do not believe in multiple monitors since I try to keep my trading plan very simple, multiple monitors tend to create information paralysis since there is such a thing as too much information. Multi monitors also add considerable costs to your system since you need each one as well as buy higher end or multiple graphics cards
  • 4) A UPS (Uninterrupted Power Supply) This will keep your desktop computer, monitor, modem powered if there is a power outage at your office. Believe me you don’t want to have a trade placed online and then not be able to manage it because you have no power.

Costco has all of these items (except for the internet connection) at very good prices.  They also have a 90 day return policy and a concierge service which is why I buy my systems from them.

Just an FYI, I went to Costco and configured a HP desktop computer. I took the same configuration and went to one of the computer companies that focus on trading computers for online traders with multiple monitors and cool, “Trading” computer names.  Guess What?

For the same specifications, Costco was $747.67 cheaper.  Just some food for thought.

That is all you need.  In my next post I will discuss the software that you will need.

Sincerely,

Michael MeAngelo

Tags: , , ,
Posted in Getting Started Online Trading | No Comments »

Michael MeAngelo

Thursday, December 20th, 2007

Date: December 20, 2007

Time: 19:35

From:  Way West of Wall Street 

Dear Friend & Subscriber,

My name is Michael MeAngelo and I first got interested in online trading back in 1998 after reading a copy of the Millionaire Next Door by Thomas J. Stanley and William D. Danko.

I opened my first mutual fund with Vanguard and a trading account with Ameritrade (now TD Ameritrade).

My first online mutual fund purchase was the Vanguard 500 Index Fund(VFINX).  I used a dollar cost averaging strategy and put 10% of my take home paycheck into the fund every month. 

The fund really took off until about the middle of 2000.  The fund proceeded to decline in value until the end of 2002. 

My first online stock purchase was comprised of 5 small, “penny stock” companies based on recommendations from a web bulletin board. 

Needless to say, I lost money on all of these stocks.

Since then I have learned a lot.  I have taken numerous classes, read books and most importantly have put my knowledge into action.

I use 3 strategies for different accounts.  These strategies include:

1) Buy and Hold utilizing Dollar Cost Averaging

2) Trend Trading (including Swing trading)

3) Day Trading

Most traders, financial advisors, money managers, and brokers tend to focus on one of these 3 strategies, (usually the one that makes them the most money).

I believe that you should utilize all 3 for a wide variety of reasons that I will discuss in other posts on my online trading day blog.

I started this web page because of my friends and family.  They wanted to see me publish my thoughts and views on the markets and most importantly see what I am doing during my online trading day.

I am sure you are probably fall’n asleep at the keyboard right now because background info is BORING.

 Enjoy.

Sincerely,

Michael MeAngelo

Posted in Getting Started Online Trading | No Comments »