Taming the Technical Beast: How to Deal Proactively with Computer-Age Challenges

by: John Carter Keep your computer in top-notch shape to keep up to speed on your trading capabilities and stock trading system. [Editor's note: This article offers valuable information that traders to use use every week to help keep their stock trading systems running smoothly. Many individuals who trade for themselves and using stock trading systems have no information technology department to call upon when a computer problem emerges. Read this informative article to learn how to keep your computer in tip-top shape, so you can concentrate on trading and using stock trading systems, not on whether your machinery will do the job it's supposed to do.] Trading in and of itself can be one of the most stressful occupations on the planet. One day's worth of market activity can potentially determine whether a trader's kids are going to study abroad at Oxford all expenses paid, or are stuck at the local community college serving "freedom fries" part-time to pay for their books. Technological problems or disruptions can increase that stress factor to a high pitch and cause drains on both real and mental capital. There's no question that day traders who are stuck behind the technology curve are at a disadvantage to those who are up to speed. From stock trading systems that are outdated to specific tactics used by companies to dump process-clogging spyware onto the user's computer, a trader who chooses technological ignorance is setting himself up for disaster. Having a trade go wrong because of technological issues in stock trading systems is inexcusable for the serious trader who is trying to make a living at this profession. Although it's not as exciting as throwing out an order for a hundred lot, the trader who wants to maintain a competitive edge in this business must first be aware of the technological dangers facing him in today's world. In this electronic age, the PC is the trader's most important trading tool along with his stock trading systems, but he can't take its "powers" for granted. Instead, he needs to be aware of the hurdles he faces and take a proactive approach to attack these issues head on. That being said, the three main technological problems for the trader today that will effect their stock trading systems and they are as follows: • Computer Invaders: Being connected to the Internet, the trader's stock trading systems is being abused without his knowledge. This causes most malfunctions on computers and stock trading systems today, and he must be aware of how to first remove the "crud" and then block it so it won't happen again. • Process Cloggers: Steps need to be taken to maximize computer effectiveness and prevent crashing. You do not want you stock trading systems to crash. • General Technology Problems: What to do when the technology around the trader fails to deliver…because it will. Ignoring these preventable issues is like trading without a stop loss. Take the time to take care of this right now, and get on the path to smooth trading with the right trading software. Get Rid of the "Crud" That Slows Down the Computer and your Stock Trading Systems A trader can have the best stock trading systems available for trading, but if his computer isn't properly cared for, protected and maintained, the greatest stock trading system in the world becomes worthless. Each day, the trader's computer is bombarded and invaded with hidden crud, and it is truly shocking how dangerous some of this stuff is to the trader's PC. For the trader who is serious about making this business a full-time job, neglecting these next steps is the same as McDonald's not wiping down their counters or cleaning their restrooms. The biggest technical problem facing traders and their stock trading systems today is one in which most are completely unaware: staying "spyware free." This is one of the most important steps to keeping a PC running smoothly and safely. Why, you ask? Simply, spyware will crash the trader's computer and stock trading systems, ruin his Internet connection and make Internet surfing unsafe. Spyware is not a "cookie," which we'll discuss shortly in more detail. In a nutshell, spyware is software that companies place on the user's PC without their permission. (Sometimes, though, it is unknowingly with the user's permission, if the user doesn't read the fine print in the agreement he accepts prior to downloading a software program). Spyware software takes over the trader's Internet browser, collects data on his surfing habits, generates pop-up ads when the trader visits certain websites and, generally, slows down his or her computer. In addition, much spyware is poorly written and can cause incompatibility issues, corrupt important system functions, and threaten the stability of the trader's computer and stock trading systems. Those who want to assure that their computers run smoothly -- keep them from freezing up and crashing -- must get all spyware off their computers…and then prevent it from coming back. Then your trading software will work smoothly The first time I learned how to do a search for this malicious software, I found more than 50 spyware programs on my computer. After they were removed, my computer operated faster, my stock trading systems was great, and stopped freezing up on me. This stuff is downloaded "behind the scenes," so it is invisible to the computer user. Incidentally, when I did this, I was certain that I didn't have any spyware on my computer. Needless to say, I was wrong. Yes, You Can Be James Bond There are two excellent spyware removal applications available, and they both are downloadable and free, so there is no reason to not use them regularly. The two best applications for removing spyware are "SpyBot Search & Destroy" and "Ad Aware." It is important that the trader uses both of these applications, because one finds what the other misses and vice versa. There is another highly recommended application for spyware prevention, too, called "SpywareBlaster." This application sets certain registry entries that prevent spyware from ever installing. It does not run in the background using any resources; the user just sets it and forgets it. Once these three "must have" applications are installed, a trader then needs to update them and keep them up to date. I would recommend checking for updates weekly. Similar to antivirus software, the trader needs to be protected on a continuous basis. To update SpyBot, just open the application from the start menu (use the advanced mode option) and select "search for updates." It then will show what updates are available for download. Always install all the updates. Another SpyBot feature is called "Immunize." Select this icon and under "Permanent Internet Explorer Immunity" select "Immunize." This works in the same way as SpywareBlaster in blocking new spyware. It also gives the trader the option of locking the trader hosts file against hijackers, a feature I highly recommend using. To update Ad Aware, just open it and select "Check for updates now." For SpywareBlaster, it is pretty much the same. Just open it, and select "Check for updates." Once this is updated, click "select all" and then "Protect against checked items" so that these updates take effect. Anything these applications find is spyware and should be removed. Cookies -- Opting In and Out Another device companies use to track information on the trader's PC is called a "cookie." This is a small text file that can be good or bad. It's good for visiting a favorite website, such as Amazon.com. With a cookie installed, Amazon will remember who the user is, so they don't have to always login when they visit the site. However, there also are bad cookies placed by companies such as Double-click that track site usage, coordinate pop-up ads and, generally, invade the trader's privacy. The best thing to do here is start from scratch and delete all of the cookies on the computer. To do this, go to Start, Settings, Control Panel and, then, Internet Options. Under Temporary Internet Files, there is a button that says, "Delete Cookies." Click this. After they are deleted, go to Privacy, Advanced. Once here, check the box titled "Override automatic cookie handling." Below that I check "Prompt" for first-party cookies and "Block" for third-party cookies. In this way, when the trader goes to Amazon, a message pops up asking if he wants to accept the cookie. I say "yes" because it's a site I visit often. Any third-party cookies like Double-click will automatically be blocked. This prevents pop-up ads and keeps the trader's computer and trading software running in top form. If I am asked to accept a cookie from a site I rarely visit, I will say "no," and the cookie will not be planted on my computer. Maximizing System Resources For Your Stock Trading Systems There are three things a trader should be doing on a weekly basis to ensure that his computer and trading software is running at maximum efficiency. The first two of these involve deleting files on the computer that are unnecessary. To do this, first go to the Recycle Bin, an icon located on the trader desktop PC. Right click, select "Empty Recycle Bin," and delete the files. Every file the computer user deletes is not really deleted -- it is moved to the Recycle Bin. To really get it off the computer and free up memory, the trader needs to empty the Recycle Bin as well. The second place where memory is gobbled up is in what is called the Cache. This "catches" all of the websites the trader visits for faster downloading of the site next time it is visited. With the advent of broadband, this is an unnecessary feature. To "Clean the Cache" go to Start, Settings, Control Panel and, then, Internet Options. Under "Temporary Internet Files" click "Delete Files." A pop-up box will appear and will ask if the user wants to delete all offline content. This is important to do, so the trader should click the box to indicated "Yes." Hit "OK" and sit back. If the computer user has never done this, it can take a few minutes to delete all of the garbage on the computer. The serious trader should do this at least once a week for all stock trading systems to run smoothly. Finally, once these two things are completed, the serious trader will want to defrag his or her hard drive. Disk fragmentation slows down the computer and often is the cause of a variety of other problems such as hangs, crashes and errors in stock trading systems. Fragmentation accumulates rapidly through normal computer use, and program access time continues to increase, problems worsen and the productive life of a computer will shorten by years. Defragging the hard drive puts all of the pieces back together again, making the computer run much more efficiently. Traders should do this weekly, if not daily. Go to Start, Programs, Accessories, System Tools, Disk Defragmenter. Make sure the hard drive is highlighted (usually this is drive C) and click "Defragment." This can take 20-30 minutes if this has never been done before. There also is a program called "Diskeeper" that eliminates fragmentation automatically, so it is never an issue. Trading Specific Issues with Stock Trading Systems Once a trader's computer is in top working form, there are yet other technical problems that can occur. In my experience, there are four main problems for which all traders should be prepared: 1. Blackouts or brownouts that cut off all electricity 2. Cable or DSL goes down 3. Difficulty in contacting a broker 4. Data feed/trading platform goes down These are problems that can happen at any time. Serious traders should prepare themselves for all of these eventualities and protect his/her stock trading systems. What Happened to the Lights? A blackout or a brownout can occur at any time. I've personally been involved in half a dozen of these over the last two years for a variety of reasons. They can be caused by weather, a power grid going out, or a car accident involving a telephone pole. They seemingly can happen out of nowhere, and the trader suddenly will find himself without power, losing his ability to view the market and execute trades. To combat this situation, here's what needs to be in place to dull the pain of this type of event: • Battery backups on the computer. These are available at any major office supply shop. In the event of a loss of electricity, a backup gives the trader about 30 minutes of power, which is plenty of time to close out positions or reset parameters in case the power is going to be down for a long time. This also gives the trader time to manually shut down his computer, which is much safer than having it go out suddenly due to a power loss. • Non-cordless phone. These are the old-fashioned phones that have a cord attached to the handset. When the electricity goes out, so does the cordless phone. With the old fashioned "corded" phones, a trader will still be able to make a phone call to a broker. Obviously, a cell phone would work in this situation -- but those things run out of juice at the worst possible moments. These phones can be purchased for less than 20 bucks at any department or electronics store. Cable or DSL can go out even when the electricity is still on. This usually happens at the absolute worst time, so the astute trader will want to be prepared. The best way to combat this is to have a fully charged laptop connected to a phone line. This way the trader has Internet connectivity if the DSL or cable goes down -- and the trader also will have a backup in case the electricity goes out. By having a laptop that is fully charged and ready to go attached to a phone line, a few hours of valuable time can be gained. Use Instant Messaging Another technological trend in the industry is for brokers to let computers do all of the work. Although this provides for efficiencies and cuts costs, the bottom line is that if I have a problem, I better be able to get hold of my broker right away. If I call my broker and can't get hold of him, I start foaming at the mouth--a signal that it is time for me to switch brokers. If I want to be on hold, I will call my credit card company, not my broker. My suggestion here is to take advantage of technology and get the broker hooked up on an instant messaging program such as Yahoo or MSN. This is an incredibly efficient way to stay in touch throughout the day. If my data feed goes down, I can IM (instant message) my broker for a quote. The expectation for my broker is that I can contact him or her via phone or instant message right away. If the broker is not available, I have the number and instant message as a back up. In trading, there is no excuse not to be able to get a live person to help out with an order or question right away. Why else would we pay them all of those commissions? If the trader's data feed goes down, much of what already has been discussed will help. Being able to contact a broker to get a quote or place a trade in this situation is imperative. Yahoo Finance also is a great site to get free quotes on stocks, options and futures. There are other areas of the trader's computer of which to be aware, including how to block pop-up ads, the best and easiest ways to back up the trader's hard drives, the best software for blocking viruses and blocking hackers, fending off junk mail, battery backups and so forth. For a list of ways to combat these issues, as well as a list of all the programs that are discussed in this article, where to get them and how to use them, feel free to email sfotech@tradethemarkets.com. Trading successfully requires an edge. The trader who chooses to remain ignorant about what is really going on with his personal computer or is "outta luck" when the power goes out, is leaving himself at a decided disadvantage against those traders who are prepared. By staying up to date on the technological front, the trader has an advantage over those who don't. And, having an advantage over others is one of the main things that will make the trader a winner in this business.