Shout It Loud

As a partial owner of InvestingGuruMinotor, a stock information site, I get asked questions on a daily basis about programs I use to trade better. One of the most frequently asked questions I receive is, “What are the tools I need to day trade?” Many subscribers want to know what broker to use, what kind of computer, how many monitors etc., etc.

I figured I would answer a few of these questions in a public form so hopefully I wont have to answer them repeatedly.

Brokers: There are only one or two investing programs that I really feel that I can strongly back: MBTrading or CyberTrader, with a strong personal bias for MBTrading. I really only prefer MBTrading because it was what I started with. Make sure you remember we’re talking about daytrading, if you are a non-intraday investor there are different tools that will be better for you. When you’re daytrading the two main criteria on which I evaluate software is execution speed and customer service. Many people are really concerned with commissions, but that train of thought can cost you in the end. Since the market for brokerage is so competitive there is little differance in costs, and where there is additional cost there is additional benifit. Poor execution and inadequate customer service can cost you many times more than the savings you might realize by using the wrong broker.

For a long time I’ve been telling people that when you attempt to trade stocks intraday with software that isn’t fast and simple is like trying to win a marathon as a person with no limbs. Be cautious also of people who make recommendations of their own discount broker. Many are given incentives to have their friends sign up and I’ve heard of people making more money that way then in stocks. Suffice to say, the differences are drastic.

Quotes and Data Feed: Certain brokers that you choose will require that you provide your own live data feed. I suggest you ask the broker you choose to make a recommendation here. They have worked closely with different data suppliers and should be able to tell you which one is doing the best job with their service. No matter what service you get, two things you need need need is Level II quotes for both the NASDAQ and Dow stock exchanges.