When you think of the stock market, do you picture a thousand people in suits, standing on a trading floor, staring at elevated television screens? Or do you imagine someone sitting at a desk with six computer monitors in front of them?
Day traders have multiple screens to have vital data on display at all times. The more information that can be shown constantly means less clicking through programs to find details needed to trade. Generally, the screens display trading charts, timeframes, news, and communications.
There is a lot of information that a day trader should have access to throughout the day. This article will explain some of this information and explore why having multiple screens makes their job easier.
IMPORTANT SIDENOTE: I surveyed 1500+ traders to understand how social trading impacted their trading outcomes. The results shocked my belief system! Read my latest article: ‘Exploring Social Trading: Community, Profit, and Collaboration’ for my in-depth findings through the data collected from this survey!
Table of Contents
The Process of Day Trading
Day trading is the strategic buying and selling of stocks within the same day. Stocks serve as a representation of the portion of a company. The more stocks you own from one company, the larger portion of that company (and its assets and profits) belongs to you. Stocks are broken down into “shares,” which is what most traders are working with.
The price of a company’s stock will rise and fall, almost constantly. The price changes daily, with the altering prices providing opportunities for strategic profits. This strategy takes a long time to learn and a keen eye to become attuned to spotting trends.
Many of the multiple screen spaces that traders use are dedicated to watching these trends rise and fall. Daily changes in stock prices, as well as weekly and monthly records, are often displayed. By tracking these trends, forecasting new ones, and taking advantage of surprise dips in the market, day traders can make a lot of money.
The Fast Pace of Day Trading
Trends in the market are just a few pieces of information that day traders need to do their job. They need a lot of input from a lot of programs that they use multiple times per minute. These programs need to be referred to so often that using a single-screen to access them all makes for a lot of clicking.
While you are busy clicking through tabs, trying to find the right information, your window of opportunity is closing. Trading is such a fast-paced career that the mere seconds it takes to switch programs can lose you thousands of dollars.
Information Needed for Day Trading
Other information that a day trader will want to access throughout the day includes trading charts, a live feed of shares being sold, and at what price. These ever-changing numbers are where the traders will spot an optimal opportunity for profit.
Day traders will also need access to trading software itself, in which the actual transactions take place. This software could be quickly referred to as required since it won’t be in use unless the trader is making a transaction at that time.
Traders are also active in multiple markets and currencies. Each market and its currency will have its slew of information that the trader will need to effectively stay active. These foreign markets often have their screen dedicated to them.
News outlets are another important factor for day traders. Watching current events can give huge market insight. A CEO’s major food recall or embarrassing act can greatly affect a company’s perceived value and drive the stock prices down as people scramble to dump shares connected to the damaged brand.
This manic selling can create a lucrative purchase opportunity for traders who project the business will bounce back. By watching breaking news, day traders can ensure they jump on these opportunities as soon as they arise.
The Multiple Screen Advantage
While it is completely possible to day trade with only one screen, and for many, this gives the job attractive flexibility. If you can sufficiently trade from your laptop alone, then you can live anywhere and be a day trader– just make sure you wake up when the market does.
However, if you are not a traveling nomad, then having a multi-screen set-up can be a huge advantage. Full-time day traders are flicking between the same programs, day in and day out. They spend hours upon hours viewing the same channels and watching the same stocks rise and fall. Having this information on constant display will save them hundreds of hours and thousands of clicks in the long run.
We ask you this: which moves faster, your eyes or your hand?
How Many Screens Should You Have for Day Trading?
So, you’re sold on the idea of having multiple screens, but exactly how many screens is enough? Some traders swear that you should have no less than eight, while others believe two is more than enough.
Ideally, you’ll want between two and four screens for day trading.
The Two Screen Set-Up
The dual monitor setup will still involve a large amount of clicking. You’ll probably use one monitor to split-screen some sort of news outlet and trading charts, the information you want constant access to, you won’t have too much clicking to perform on this screen once your preferred information is on display.
Your main screen will be the click-heavy one. Transferring between your trading software, alternative currency and market applications, and all of your communications–with your team, your clients, or your other traders.
The Three Screen Set-Up
The triple screen may be the sweet spot for beginning full-time traders. Three screens allow you a huge amount of flexibility with the information that you have on display constantly. As a new trader, you’ll be referring a lot to existing trades and the moves that more experienced traders are jumping on.
You’ll likely have one screen dedicated to trading charts, and with a whole screen to show them, you can fit multiple charts on one display. Another screen would be attuned to the news, perhaps split screen between live news and a browser page with google alerts.
Tip: Get used to the idea of setting alerts; over time, much of your trading career will be automated. You’ll eventually develop your algorithm, and programs will alert you when certain stocks fulfill your criteria for a good trade so that you can jump on them immediately.
The third screen will see the most action, being the screen where your trade applications and communications will occur.
The Four Screen Set-Up
Four screens; for when three just isn’t enough. We highly suggest starting with three screens and getting used to which information you use the most from hour to hour. Once you feel for the most imperative data to your business, you’ll know your ideal setup.
By adding a fourth screen, you’re giving yourself the luxury of having the most comfortable trading day. So much information will be on constant display that you’ll largely be able to sit back and watch the shares roll, and the often panicked shift will become targeted and focused.
Four screens will look similar to three screens, but your extra monitor could display a different currency and market information. It could also display something as banal as Netflix, giving you a little reprieve from the rolling numbers.
Author’s Recommendations: Top Trading and Investment Resources To Consider
Before concluding this article, I wanted to share few trading and investment resources that I have vetted, with the help of 50+ consistently profitable traders, for you. I am confident that you will greatly benefit in your trading journey by considering one or more of these resources.
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Conclusion
Day traders use multiple screens to minimize their clicks per minute and optimize the amount of information they can gather in one second. For a part-time day trader, two screens are often enough, but full-time traders tend to lean toward three or four screens.
Some traders also use as many as eight screens, so ultimately, there is no “right number” of displays. Simply find what works for you (and your trades) and go with it!
BEFORE YOU GO: Don’t forget to check out my latest article – ‘Exploring Social Trading: Community, Profit, and Collaboration’. I surveyed 1500+ traders to identify the impact social trading can have on your trading performance, and shared all my findings in this article. No matter where you are in your trading journey today, I am confident that you will find this article helpful!
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