INTRODUCTION
This month the newsletter will not be looking into Spread Betting itself, rather some of the tools, software programs, websites and other computer and trading ideas that you might find useful.
There are two important facts that everyone should realise when it comes to technology
1. You must have the right basic equipment
2. A lot of equipment, tools, websites, software etc are available for free
SPREAD BETTING - What's the most important piece of equipment?
Without a doubt a good (not necessarily expensive) computer combined with a Broadband connection. People who cannot get a broadband connection are obviously excused but anyone who has the capability and is still trading with a dial up modem is simply crazy.
Broadband is available for £20-£35 a month and it is just inconceivable that someone speculating with real money in the financial markets tries to do it on the cheap, saving a few pounds every month.
In our office we've got BT Broadband installed and have had NO problems for over 2 years. However in this week's Sunday Times www.eclipse.net.uk got an excellent write-up and regularly scores top marks in industry surveys.
A good internet connection is as important as a good computer, and these days you can buy an outstanding machine for around £600 (incl VAT) excluding the screen (this is the case in January 2004, but prices are falling all the time). With screens you can go the flat panel route paying about £300 for a good one, but we prefer to use the screens from our old computer setups, they are perfectly good enough.
It is strongly advised that you NEVER buy a new computer from shops like PC World or Dixons because they will plain and simple rip you off, stuffing you up with last years machines and/or very low quality internal components. The best computers to buy are the bespoke ones where you can make sure that all the critical components (motherboards, RAM, Hard drives etc) are of a sound spec.
Buying a £600 PC today will last at least 4 years with only minimal upgrades (RAM etc) over that time period. If you need to know where to buy a good custom built PC with full warranties etc then please email us.
CHARTING
Charting for many people is a critical component to their trading and analysis. The trading software provided by the spread betting companies usually has some charting capabilities built in, but they are mediocre at best.
If you're serious about charting then you should consider a program like Metastock by www.equis.com (this company also provides some excellent free education on Technical Analysis). We've been using Equis for nearly 10 years and find its charting capabilities outstanding.
Metastock is not cheap though, retailing at around $450 but it is well worth it if charting is an integral part of your trading/investment process. The software is American and is also available in the UK, but watch the price because it maybe cheaper to buy it there and have it shipped over, even with the taxes.
