How to set up your trading screen

The modern market has evolved into an extremely complex organism, with thousands of data points competing for attention. Our job is to transform this flood of information into a set of effective charts, stock codes, indices and indicators to support our profit goals. Part of this task requires observing broad market forces, while balancing requires narrow attention to the specific securities used to execute our strategy.

Most traders have outside jobs and responsibilities in real life, forcing them to enter the market through small smartphones, collecting the information needed to take on new risks and manage open positions in order to come up with profitable or unprofitable The conclusion.These people will benefit from my Top strategies that remote traders should follow.

Key points

  • If you are an active trader, your trading platform is your workstation-setting up the screen layout will help you take advantage of the information at your disposal.
  • Whether it’s one, two, three or more screens, make sure you can find the tools and data you need at a glance to take action when a signal appears.
  • Many platforms provide customizable and modular screen customization, as well as preset default values ​​for specific types of users.

Trading from the screen

A lucky few people are sitting at home or in specialty stores doing full-time transactions. These people need more detailed screen information because they take a greater risk. The additional data covers the same areas as the remote participants, but in more detail. In addition, these traders need to leave room to incubate future opportunities, focusing on market groups that are currently untraded.

How many monitors does a home trader need to effectively observe the market? Over the years, the answer has changed because monitor prices have dropped significantly, and graphics cards now generally support multi-monitor setups. Given the low cost, it makes sense to add as many displays as possible in the space set aside for this feature, while not exceeding your budget or your ability to analyze the information placed on the display in a timely manner.

Build an effective trading screen

In general, traders do a poor job of capturing the three types of information needed to support comprehensive visual analysis: market observation, position management, and incubators. Every square inch of screen space wasted due to unnecessary charts or data will result in an incomplete view, which can be costly in an active trading style. Almost all traders have made the most common mistake at some stage in their careers, which is to load a screen with too many charts and not enough code.

To reserve charts for codes that must be watched, the second group is set to a different time frame, linked to a single code in the watch list. If space is limited, add a time frame toolbar to fewer charts and browse the different settings on that chart. The specific time frame used for this analysis should match your market methodology. Although not set in stone, the following settings provide a good starting point:

Required charts may include the following:

  • Standard & Poor’s 500 Futures or SPDR Standard & Poor’s 500 Trust (SPY) set to a 15-minute time frame
  • Nasdaq 100 futures or Powershares QQQ Trust (QQQ) is set to a 15-minute time frame
  • VIX-CBOE Volatility Index (VIX) set to a 15-minute time frame
  • 24-hour and 15-minute charts of market volatility securities such as Apple (AAPL), SPDR Gold Shares (GLD) and U.S. Petroleum Fund (USO).

If possible, keep two sets of S&P 500 index futures charts, one set for the US time period, starting at 9:30 am Eastern Time and ending at 4:15 pm Eastern Time, and another set of 24-hour 60-minute futures charts tracking overnight Asia And European actions. When you turn on the workstation in the morning, the second chart is very useful.

How about real-time news quotes? This is a personal choice because some strategies rely on breaking news to execute positions, while most strategies work perfectly with independent third-party services or well-planned Twitter streams. As a general rule, it’s best to separate news from charts and data programs to save valuable space for charts and securities codes.

Sample setup

These image captures are prominent methods of effectively using screen space, regardless of the number of displays used to view financial markets. The panels in these examples can scale well when adding new screens or loading small laptops for travel. When space is tight, reduce the number of charts and securities while retaining the entire set of indexes and indicators.

The top panel (1) highlights the main benchmarks, showing detailed information about the Dow Jones Industrial Average, S&P 500, Russell 2000, and Nasdaq. The S&P 500 Index and Nasdaq 100 Index futures contracts are at line-of-sight, so traders can observe in real time on the trading day. The opening price, highest price, lowest price, and final data columns reveal the interaction of current prices with key levels, which also mark intraday support and resistance.

The left panel in the middle (2) deconstructs the 2-level Depth of Market screen, eliminating extraneous columns and adopting a streamlined view that only displays price and scale. Market center data is no longer useful, because the vast majority of intraday transactions never appear on this screen due to the high frequency trading algorithm (HFT). The time and sales code on the right has also been reduced to the core elements, showing only the time, price, and size.

The middle right panel (3) shows a simplified portfolio view of long-term positions. It is not required, but it is very useful when the position explodes and requires the trader’s attention. The lower panel (4) contains detailed information about open positions and securities that are monitoring entry. Price and percentage changes measure intraday performance, while trading volume and average trading volume show the level of activity compared to the previous trading day. In many cases, the opening price, the highest price, the lowest price, and the last column replace the chart, making it easy to visualize daily patterns.

The upper left (1) and upper right (2) panels display the reduced data on the secondary stock list. These are compiled over time through news, scans, homework, media play, and all other ways we find interesting trading settings. The volume and average volume listed in these lists are particularly important because they can identify active securities at a glance. The chart (3) is linked to the stock symbols on all panels through the green symbol in the upper left corner. Traders can also browse the time range from 2 minutes to monthly by clicking on the top toolbar.

The upper left corner (1) and left middle corner (2) panels display internal market information and key indicators that are not displayed on the first screen. It takes time to learn to interpret this background information correctly, but the effort is worth it because it can develop important tape reading skills. The upper right (3) panel contains the same columns as the other secondary lists, but focuses on specific market groups… in this case energy and commodities. Finally, the chart in the lower left corner (4) shows the real-time VIX, and the chart in the lower right corner (5) shows the core securities that you will follow for several years or decades.

Bottom line

A well-organized trading screen summarizes intraday market behavior and breaks it down into digestible fragments, which can speed up complex trading decisions and reveal conditions that can develop into a full-scale rebound, sell-off, and reversal. If carefully constructed, these screens mark definable trading advantages that can last a lifetime.

[No matter what kind of trader you are, the ideal setup for your trading screens will depend on the specific indicators and oscillators you choose to analyze. To learn more about these tools, check out the Technical Analysis course on the InvestingClue Academy, which includes on-demand videos and interactive content to help you improve your trading skills.]

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