You might need multiple screens and you might not, it’s actually stereotypical though.
However, while this might be the stuff of movies and television shows, it’s also the case that many traders do, in fact, have a series of screens out in front of them in order to make sure that they don’t miss a beat when it comes to their trading experience and their portfolios.
With that in mind, this article will explore why multiple screens can be a lifesaver for traders. It will also take a look at some other items of kit that many traders are likely to find useful as ways of enhancing their chances of making a good investment choice.
Advantages of using multiple screens.
Another reason why screens are so useful is that they allow traders to build cross-asset portfolios more effectively. Some traders specialize in one asset or another: for example, you might become a foreign exchange trader and specialize in Japanese yen/US dollar pair. While you may need multiple screens in order to monitor different timeframes, you won’t necessarily need to monitor multiple different markets at any one time.
First off, traders need to make sure that they have access to a variety of timeframe options in order to make effective analytical decisions about their open positions. If a trader does not have this, for example, they may find themselves unable to compare a long-term view of performance (say, two years) and a short-term one (say, one day).
This may be more or less relevant depending on the asset class they hold and how volatile it is – and also what macroeconomic or global factors affect its performance, such as interest rate announcements or general elections.
Disadvantages of using multiple screens.
Lack of focus.
Research has shown there’s no such thing as multitasking. Instead, your brain toggles rapidly between each task giving it undivided attention, but only for a moment before toggling back to the previous task. How many times have you been looking into a pair or different asset classes, only to see a little movement in your peripheral? Is that a trade setting up? No… where was I? Ok, focus.
If you currently only have a traditional set up, you’ll need to get an additional monitor.
While the cost has come down considerably, it is still a barrier in some situations, especially for those who are uncertain if they would even prefer working with a second screen.
Too Much Space
Jeff Atwood of Coding Horor calls it The Large Display Paradox. When using very large monitors you may wind up spending too much time resizing and arranging windows.
This is an issue that you won’t encounter on smaller displays where you tend to work with one maximized window at a time.