How to pick a trading room

Dear Traders,

Setting up a proper trading room is almost as important as having a proper trading psychology. How many times have you missed a great trading opportunity because your attention was focused on other things? And if you are an aspiring trader or you wish to become one, you need to need to know how important your workspace is when it comes to focus and overall productivity. Your peace of mind should always follow you, no matter where you are. Frustration can be high if you allow other things to distract you. Trading is a profession not a game and as with every other profession, it needs a set of tools other than a simple trading system to help keep you relaxed and stress-free. Below is a list of essential tools you need to have within your own trading space.

Workspace

Setting up your own workspace at home is a valid option as long as you have a separate, isolated, noise-proof room. Your trading space should be optimized for performance. That means no clutter or distractions. You may want to include physical reminders that help to put you in the zone and stay centred, such as my crystallized Tarantula that travels the world with me as I teach and trade.

If you work in an office, you need to put aside any troubles you may have at home. The same principle applies when you work from home. The workspace should have:

1. windows, for fresh air
2. a comfortable chair that cushions the lumbar part of your spine
3. an air conditioning system (if available)
4. a couch
5. a stable working desk.

A good desk and chair are a no-brainer, but you still want your desk and room to feel uncluttered. Get a chair you can sit comfortably on for several hours a day. Remember, your focus is on trading and not on managing an uncomfortable chair or a wobbly desk.

Proper air conditioning should easily balance your home ventilation, so you don't need to worry about the weather outside. And your windows should be open before you start your trading day too.

Having a noise-proof room will filter out the background sounds that have become a byproduct of our busy lives and the couch will help you relax whenever nerves take hold.

Computer

You need a good computer. Don't forget that the technology life cycle of an average MAC or PC is short, while platform technology is constantly developing. It's important to have a reliable, fast computer that can easily handle multiple charts and platforms. Trading with a laptop is no issue and it's handy if you travel a lot, especially if it comes with a large screen.

However, don't despair if for any reason you don't have a good PC or a laptop. Admiral Markets' WebTrader puts the popular MetaTrader 4 platform in your browser, so you can easily trade from any computer.

Monitors

I use a dual monitor setup today, but originally had a triple monitor setup that I removed for two reasons. Firstly I wanted more space on my desk and secondly, the triple monitor set-up is not needed for day traders who only focus on Forex pairs and a few equities. But if you trade markets other than Forex (e.g. indices, metals, stocks) and you manage a big portfolio, then the triple-monitor setup is a good choice.

High quality internet

A high speed internet connection is an absolute must for traders. Don't be cheap here. Get a backup connection too, in case the first connection drops out.

Also, with a slow computer or connection you will definitely get inaccurate, lagging quotes. It may also take some time to get the order executed, which translates into increased slippage on market orders. If you are using market orders with Admiral Markets then you will get the speediest execution available, but only if your internet connection is up to scratch.

Speakers vs. headset

Playing pleasant music or just the music you like, can help you relax and remove boredom during quiet trading periods. Being relaxed takes your focus away from a slow moving market, which can in-turn stem your desire to make impulsive trades for the sake of entertainment.

A good information source

You need to get a good chunk of simple, effective and free information before your trading day begins. A simple look at the economic calendar or a heat map can help shape your trading decisions. And reading a technical analysis article will definitely help you choose the pair you want to trade on that particular day.

Platform

When you finish setting up your trading space and hardware, you'll need to choose a broker and platform (if you haven't already done so). My personal choice is Admiral Markets - not because it has been voted the best MT4 broker (I was trading with them long before they were voted the best) - but rather because I trade with MT4. Admiral Markets makes my MT4-based trading day easy because of things like the overall speed of order execution, a stop-loss policy and the superb MT4 Supreme edition.

For day trading, you will probably want a good ECN account with great spreads, low commission and the fastest execution you can find. But if you are not a fan of day trading, I suggest looking at a standard account, which is perfectly suitable for swing trading. Remember, stability and reliability are always important.

Creating the right trading room set-up will take some time, work and money but it will also help you begin building a successful Forex trading career.

We hope that the post helps you choose and set up your trading room correctly. If you have any further suggestions you want to share, feel free to comment or ask us in our webinars.

Cheers and good trading,

Nenad and Chris