When you walk into a typical Wall Street trading floor, the first thing you'll notice is the abundance of screens. Traders have them everywhere - in front of them, to their sides, and even above their heads. So why do traders have so many screens? And more importantly, can using multiple monitors help you trade better? In this article, we'll discuss the answers to all of these questions.
Why do traders have so many screens?
There are a few reasons why traders might have multiple screens. First, they need to see a lot of information at once. They need to be able to track multiple markets, monitor their positions, and look for trading opportunities.
Second, they often use different software or applications, each of which might require its screen. And third, having multiple screens simply allows traders to be more efficient.
How many screens do you need as a trader?
There is no magic number when it comes to the number of screens a trader needs. Some traders might get by with just a few, while others might need a dozen or more.
It depends on the individual trader and their trading style. That said, most professional traders will find that four to six screens are a good starting point.
How can I trade with multiple monitors?
If you're interested in trying out multiple monitors for your trading, there are a few things you need to keep in mind. First, make sure your computer can support multiple monitors.
Second, decide what type of information you want to display on each screen. And finally, be sure to set up your screens in a way that is comfortable and ergonomic for you.
Why do professional traders use multiple screens?
Professional traders use multiple screens to increase their efficiency, allowing them to manage more trades simultaneously. By opening multiple trades at once, professional traders can quickly see which trades are in profit and which ones are not, which lets them make informed decisions about when to close those trades.
Why using multiple screens can help you trading
Using multiple screens offers distinct advantages over using a single screen. Here are the most common benefits of using more than one screen when trading.
1. More data & charts open
First, it allows traders to have multiple charts and windows open simultaneously. This is important because it provides them with more information that they can use to make informed trading decisions.
Different charts can display correlations between asset prices, helping traders identify potential trade opportunities. For example, if the price of gold is rising while the US Dollar is falling, that could signify that gold is a good investment.
2. Monitor different markets
Having multiple screens also allows traders to monitor multiple markets simultaneously. This is especially helpful for those who trade in multiple asset classes or have positions in multiple markets.
For example, if you're trading stocks, you might have one screen showing the Nasdaq Composite Index and another showing the S&P 500 Index.
3. Customize your workspace
Using multiple screens allows traders to customize their workspace to fit their specific needs. This includes things like arranging their charts and windows in a way that is most efficient for them, as well as adding custom indicators or news feeds.
All of this helps traders work more efficiently and make better trading decisions. One screen can display news reports while another might show live quotes, helping traders make informed decisions about their trades.
4. You can use multiple monitors to improve your trading speed
If you're a trader, you must have a good sense of how much time it takes to make a trade. If you're going to be fast enough to profit from the market, you need to be able to move quickly when opportunities present themselves.
One way to improve your trading speed is by using multiple monitors. This will allow you to keep track of multiple markets at once and make it easier to see patterns and opportunities as they arise.
5. Helps you develop better strategies
It's not just about having more screen space, it's about being able to view more information simultaneously. That means you can keep tabs on several different streams of information and jump between them as needed.
This is especially helpful if you're trying to develop a new strategy or solve a problem that involves multiple factors. You can keep an eye on what every team member is working on while keeping tabs on your competitors' progress, all while keeping an eye out for any new developments in the market or industry.
If you work with a broker and have an individual commission-free trading account, you might want to use one screen for your broker's platform and another for your own. This gives you the ability to quickly compare prices between the two platforms and make sure you're getting the best possible price on your trades.
6. It Keeps Your Organized
You see a trade opportunity, but you need to double-check some information to confirm your decision. You know you have a tab open somewhere that shows precisely what you need. After going through each tab, you finally find what you need. You're ready to make the trade. By the time you find the information you need, the opportunity has passed.
With multiple screens, you can keep all the information you need organized and easily accessible. Too many tabs without a clear indication of where the information is can lead to stress and confusion. Multiple screens allow you to have a clear overview of all the information available to you, so you can make organized and calculated decisions about your trades.
The Bottom Line
In short, traders have to deal with a lot of information. This means the more tools they can keep in front of them at once, the more information they can process. It's all about efficiency. A trader with one screen can only view so much data at once; a trader with four screens can view potentially four times as much data at once.
Whether you agree with this practice or not is irrelevant—the fact remains that many traders have multiple screens in front of them. Some people may become overwhelmed by all the data. This is especially true for new beginners just learning about the markets.
Even one screen can be confusing, let alone four or five. The key is to find a system and method that works for you and helps you become more efficient in your trading.
Do you think having multiple screens gives traders an advantage? Let us know in the comments below!