Buying A Trading Computer For Trading Futures
Trading futures can be very frustrating and confusing especially for novices who are just starting out. What is even more frustrating and confusing is determining which computer you need to buy so that you can buy and sell real time.
There are many companies in the market that want to sell you a new computer, for trading, for gaming, for business, etc. Most times they confuse you with advertisements that have glossy pictures of what looks like a "hot" machine. Their websites are even more slick, with flashing videos and loud music. The problem is, once you get past the loud music and flashy videos, you'll find that most of those companies spend more on advertising than they do in the components they put inside the computers they sell.
Overall, computers are a disposable commodity. You buy one today with the expectations that in two years you'll be looking for another one. The technology changes that fast. The components that are earth-shatteringly fast today are slow tomorrow. That being said, when purchasing a computer today, you do want to buy the earth-shatteringly hot components. Why? Because if you buy a computer with components that are at the end of their run, then you won't even get two years out of them.
Right now you can purchase a new computer with an Intel I3 processor from larger department stores. I3 at this point is old technology. Why spend the money on an I3 processor when Intel is now manufacturing and selling I7 extreme processors. You have just bought an obsolete computer before you even get it home. An I3 can't possibly keep up with an I7 extreme. If you buy that I3, you might be looking to upgrade in a year. At least if you buy the I7, you can hold onto it for a couple of years before an I10 or I12 emerges.
Another important issue with so many of the vendors is that the components they choose for their laptops or desktops are also at the end of their run. Large department stores that sell computers often have the vendor make them a "special" version, with last years components, components that are at the end of their manufacturing run because a new version of the component has already been released. This way the larger stores keep the price point down thinking that most of their customers won't be saavy enough to know that their computers are inferior. This is especially deceiving, given that the larger stores are selling brand name computers.
If you are really serious about trading, you want top quality components in your computer, components that are in production now. One solution is to do your homework on the internet and have a computer system professionally built for you.
As a trader, look at those things that are most important to you. Blazing fast speed with lots of RMA to handle the volume of trades coming into your chart is essential. You also want your computer to be reliable, dependable, and durable. Lastly you want a premium warranty and tech support.
Traders need powerful processors for chart computations and algorithms. Once you start building your own technical analysis indicators, processing power and capability becomes a major issue. While an Intel I3 processor worked great a few years back, the speed and processing power of the I7 extreme or AMD Phenom II Quad core is more than double or even triple that of an I3. Even beyond the I3, there are processors that are still being sold but simply should not be used for trading futures any longer: Pentium, Dual Core, Core 2 Duo, Celeron to name a few.
Here's another consideration when buying a computer...how much RAM does the computer allow. If the computer allows 8 gigs of RAM and comes with 4 gigs, you want to remove the 4 and replace it with 8. Always max out the RAM in your computer. Remember, Windows 7 will take a big bite out of your existing RAM just to run the operating system. If you under provide RAM, Windows swaps its own programs in and out to make room for your programs, slowing the machine down to a crawl. If you start to see "Not Responding" error messages, know that programs "running" on the hard drive can't respond and are being swapped. Windows was never designed for swapping. But to ensure that the computer does not crash, they figured out how to swap. In tests run on an ASUS eeepc 1000HE, with Aero glass themes, Windows 7 used about 40% of the RAM on a 1GB machine. With Basic Themes running, Windows 7 used 35%. Depending on the trading platform you are running, that alone may take over 1 GB itself. So do the math. When it comes to RAM -- more is more, less is not more. Today, with 64bit machines, at a minimum, 3GB for trading, 6GB or 8GB would be better, 16GB is best of all.
Also, with RAM, you want the fastest RAM now available...and that would be DDR3 RAM. Be sure when looking at the specs of your new computer, you see if the manufacturer is willing to tell you the brand name of the RAM, or just use some generic type. Remember, RAM chips are one of the first things to burn out on your computer. If reliability is an issue for you, and it should be if you are a trader, then go with the best.
As regards warranty and tech support, right now the average warranty is 1 year parts and labor. You are looking for a computer with a life span of at least 2 years. So you would need to buy an extended warranty. But ask yourself this...why only 1 year. Is the manufacturer telling you that in one year's time they expect the computer to be shot? If the manufacturer won't give you at least a two year warranty, that's probably telling you something about what you are buying.
Barbara Cohen CIO, Shadowtraders, and professional day trader, specializes in teaching students how they can be trading futures with their own trading system and trading strategies. Ms. Cohen has helped hundreds of traders achieve their goals trading. Find out if trading futures is for you by attending one of Ms. Cohen’s Free Webinars. Check out my Futures Trading Articles. For more information, send an email to shadowsupport@shadowtraders.com or call 866-617-2037 today.