Computing for Success

by Markay Latimer

The computer is the main tool that you will use every day to trade the market. There's no getting around the fact that you need a good, reliable computer if you want to trade. The computer gives you access to the information you need and provides a platform to open and close your trades. It is a necessity.

I have students each week who ask me for advice on choosing the computer that will work best for their trading. I wish there was just one specific system that could be recommended, but it's not that easy. No one system is right for everyone, since we all have different budgets and levels of computer know-how.

Because I hear this question a lot, I thought it would be a good idea to look at the process of selecting the right computer. There are several considerations that will factor into your decisions; the ideal solution will not be the same for everyone.

The determining factors are:

• Screen resolution
• CPU speed and memory
• Operating system

Screen Resolution

In my opinion the most important consideration is the screen. The higher the resolution, the sharper things will appear. Think of it as comparing one of the new High Definition TVs with an older model. After viewing things in HiDef, you'll never want to go back.

Now for the technical part: flat screens and screens on laptops have what is called a "native" resolution that is represented as a numeric value denoting the number of pixels (think of them as blocks that make up the picture) horizontallyby the number of pixels vertically.

For example 1024x768 is a common resolution that has 1024 pixels horizontally and 768 pixels vertically. I would consider1024 x 768to be the minimum resolution that you should consider for your screen.

These computer screens cannot use a resolution above their native resolution, however they can be set to use resolutions below their native resolutions. For example, a 1024 x768 screen can be set to use 800x600 to make things bigger on the screen.

There are some negative consequencesthat come along with running in a non-native resolution. The images and text can become fuzzy and generally do not seem as sharp (as seen in the graphic below where some characters look thicker than others) and you can fit fewer charts on the screen. Ideally you would not want to run at anything other than the native resolution. So it is important to determine which resolution is right for you and then purchase a screen or laptop with that ideal resolution.

The higher the resolution, the more room you have on the screen for charts and windows in Real Time Markets and for Extreme Charts that are sharp and clear. The highest commonly available resolution on laptops is 1920x1200 and is only found on some higher end 17-inch laptops or flat screens.

The higher resolution screens can be difficult for some people to see and can cause eyestrain when used for an extended period of time. I personally love this high resolution and would not want to use anything less.

My recommendation is to go to a computer store like Best Buy or Frys, look at the various resolutions, and chose the highest resolution with which you are comfortable. When looking at screens or laptops in a store, ask a store associate to ensure you are looking at the screen in its native resolution. Sometimes the screens will be running a demo in a non-native mode.

Remember, the higher resolutions are usually found on bigger screens, which usually cost more. At the end of the day the resolution that is right for you will depend on your eyes, budget, and the size and number of charts you need.

CPU and Memory

After settling on a screen, you'll want to make sure the computer has plenty of speed and memory. In general, the faster the computer, the better you will be. But keep in mind that a faster machine will cost more money.

I would recommend that you chose a CPU that is one or two levels from the fastest, as far as the best price-to-performance ratio. The minimum recommended CPU speed to run the BetterTrades' tools is1.5 GHz.

The computer that you chooseshould also have at least 1GB of memory, or RAM. The addition of more RAM is often the best way to improve the performance of an existing computer, up to about 2 GB of RAM. Anything above that will not significantly improvethe performance of the BetterTrades' tools.

Operating System

The final consideration is the operating system. The most common options are various Microsoft Windows versions, Apple OS X, and Linux. Be aware that all BetterTradestools are Windows based.

The newest Windows system is Vista and most new Windows based computers will come with Vista preinstalled. I personally do not prefer the Microsoft Vista operating system, as it requires a larger amount of memory (I would recommend at least 2GB) and a faster CPU to run decently. If upgrading an older system, it often will run very slow. (Staying with Windows XP would be my recommendation.)

Windows XP is my favorite Microsoft operating system, but it will probably not be available on new systems. Windows 98 would be the oldest OS that I would consider and is my least favorite, as it is dated and is usually running on older computers that may be underpowered for the BetterTrades' tools.

Another option is to use an Apple computer running OS X. Since the BetterTrades' tools do not run on Apple OS X as an Apple application, you will need to select one of the following three options:

• VMWare Fusion
• Parallels
• Dual boot with Apple Boot Camp

The recommended solution by BetterTrades' technical support is to use VMWare Fusion to run what is called a virtual machine, which is an application that runs Windows on your Apple computer (as seen in the graphic below).

Be aware that you will have to purchase VMWare Fusion, which can cost up to $80, and a copy of the version of Microsoft Windows of your choice (price varies based on version) in addition to the Apple computer.

Another option is to use a competing product called Parallels to run a virtual machine. The costs are comparable to VMWare Fusion, around $80.

The last option, one not recommended by the BetterTrades technical support team, is the Apple Boot Camp. When using this program, you must choose to boot up Windows instead of OS X. In my opinion,this defeats the purpose of buying an Apple computer, since you will not be using OS X while trading.

The first two options, VMWare Fusion and Parallels can be a little technically intimidating and may not be the best choice for students of BetterTrades who are not technically proficient in computing. I recommend a Windows based computer for those of you that are not advanced computer users. If switching from Windows to Apple, there is a learning curve and you should expect some frustration and confusion.

Now that your computer is up to speed, why not join Markay Latimer at her next two-day "Technically Speaking" workshop, May 18-19 in Dallas. A few seats still remain for the popular program.

Markay is also teaching a four-hour Moving Averages class on May 16. Markay will empower you to add depth to your technical analysis by using moving averages for better entries and exits.

To register for either event call customer service at 800-676-4410.