Computer setup

One of the necessary items in a novice trader's arsenal is a decent computer system.

You don't really need all the super-duper high end graphics stuff that dedicated computer gamers get: afterall, there are only so many colours that you can decipher on a candlestick chart. Given the law of diminishing marginal returns, you're likely to pay much more for a top-end system, but ultimately you'll probably be unable to distinguish between it and a recycled Apple II.

In my case I needed to get a new PC, preferably a desktop, as I'm a Mac user. Despite being a home Mac user, for Excel, I'm much more used to the keyboard shortcuts on Excel running on Windows XP, due to my banking background. Also, many forex brokers have trading platforms and software that isn't compatible with Mac (more on brokers at a later date). I've also tried to trade from my single screen Mac, and find the lack of screen real-estate to be quite inefficient: it's a lot easier to take in what all the markets are doing when you have at least two screens. In fact, there are studies and an article by the New York Times demonstrating that increased monitor real-estate increases productivity, possibly for the same reason I had for a two screen trading setup.

Anyway, a friend of a friend was building said-friend's computer, and I basically used his recommendations to assemble my own computer system setup at a Sim Lim Square shop. My trading setup is relatively simple computer system, consising of an Intel 2.6GHz dual core, plus 2GB of RAM, 250GB of hard disk space, two 21.5 inch full HD LCD screens (from LG), Microsoft wired mouse and keyboard, DVD writer, LAN connections, with the full suite of software (Windows XP, Norton Antivirus, and Microsoft Office 2007. All original software, by the way).

All told, the system cost me a total of S$1,231, which I thought was extremely cheap, especially since I didn't have to even lift a finger.

The vendor I patronized is on the sixth floor of Sim Lim. The shop is called Cashtronic, and it's run by these Indian chaps who are very friendly, and give very competitive prices. Their service is also top notch: I got the computer from them on Monday, and on Tuesday night the system suddenly wasn't able to start up: I got black screens, and there were also no signs of life from the keyboard and mouse lights. I took it back to them, with my receipt, and they basically helped me troubleshoot, and fixed the problem without any hesitation or extra charges (he had to replace the power unit).

When all their customers are going after them at the same time, they can get a little overwhelmed (it is a small operation afterall), but if you're in no hurry, the service is friendly and top notch, and they have integrity, and are competitively priced.

Next I'll talk about choice of brokers, choice of markets, etc.