Starting out in day trading is confusing for many reasons, particularly when you’re trying to figure out what your setup should look like.
What kind of computer do I need?
What software is essential?
Which tools will actually help me make better trades?
With all these questions swirling around, it’s easy to get stuck wondering how to build an appropriate setup to get started.
The good news is, you don’t need to have it all figured out right away.
In this post, I’m going to walk you through my current day trading setup, from the computer I’m using to the software and tools I’ve signed up for. By the end, you’ll have a clear idea of what you actually need to get started without all the guesswork.
But keep in mind, you don’t need to worry about some of these things until you’re actually ready to study a strategy and start paper trading. If you’re still learning the basics of technical analysis, the only tool you really need is a charting software. You don’t need this stuff on day 1.
My 1st Setup for Day Trading as a Beginner
Here are the exact things I’m currently using as I’m learning how to become a day trader.
This is my first setup and I will update this post if I make changes in the future.
So here is a list of things I’m using. I will go into more detail about other options below.
| Things You Need | What I’m Using |
|---|---|
| Brokerage Account | Interactive Brokers |
| Paper Trading Account | Interactive Brokers |
| Charting Software | TradingView |
| Trading Journal | TraderSync |
| Scanner | Trader Work Station (Interactive Brokers), ZenBot Stock Scanner |
| Screener | TradingView |
| S&P 500 Heat Map | TradingView, Finviz |
| Computer | Mac Laptop |
| Monitors | 2 external monitors |
Best Day Trading Platforms
I have covered how to choose a broker in a previous post here.
A really short and easy summary would be to either choose Interactive Brokers or ThinkorSwim (TD Ameritrade). Yes there are others, but based on my research these 2 are worth using. If you live outside the US consider using Interactive Brokers.
Both of these platforms have reasonable fees and more importantly, they have all the features you will need as a professional trader.
Paper Trading Software
Choose the paper trading software associated with your brokerage account. Both Interactive Brokers and ThinkorSwim (TD Ameritrade) have good paper trading accounts. Here is a tutorial for Interactive Brokers.
TradingView, which is the charting software I use also has a paper trading account. You can also consider using this if you plan to actually trade using TradingView (some brokerages link up directly with TradingView). Personally I will be executing trades on Interactive Brokers, therefore I’m using their paper trading account to get familiar with the user interface and features.
What Computer Setup Do I Need To Do Day Trading?
As this is my first setup, and I’m still very much a beginner, I think I will definitely upgrade my computer setup in the future. However, right now this works and I think this is the bare minimum you will need.
You will need a desktop computer or laptop, and a good internet connection. You don’t want a computer that will freeze on you or a lagging internet connection. You can’t trade on a cell phone or tablet.
Next you will want to get 2 monitors. This will make trading much easier and is highly recommended.
Personally I have a MacBook Pro laptop that is a few years old, and an external monitor. I just recently purchased an inexpensive 2nd monitor, and it has made things much easier. Find some reasonable options here.
What Software Do I Need To Do Day Trading?
One of the most important tools for day trading is high-quality charting software, and I highly recommend TradingView.
TradingView offers an intuitive interface that makes chart analysis straightforward, even for beginners. Whether you’re analyzing stock price trends or setting up technical indicators like moving averages and Fibonacci retracements, the platform gives you a lot of flexibility and customization.
- User-Friendly: Easy to navigate, even if you’re new to charting.
- Advanced Tools: Offers a wide range of technical indicators, drawing tools, and chart types to help you analyze market trends.
- Integrated Paper Trading: TradingView also offers paper trading accounts, which is great for practicing without risking real money.
- Seamless Integration: You can link your brokerage account directly with TradingView to execute trades (I personally use Interactive Brokers for actual trading, but having TradingView for charting is essential).
TradingView makes it easy to keep all of my trading tools in one place—my screener, watchlists, and chart setups are all synced together. It’s an essential part of my day trading workflow and I wouldn’t hesitate to recommend it to any beginner or seasoned trader. You can get started with a free trial at TradingView.com.
Also, we have a tutorial section in our community group which offers modules on getting started. You can access it for free here.
Consider a Trading Journal
Journaling your trades is very important, and there is software that makes this process super simple while at the same time can provide you valuable analytics regarding your trades. I’ll personally be using a paid service from TraderSync.
There are other free tools and you can even manually journal your trades in your own spreadsheet, however I have opted in to use a paid service to simplify this task.
Scanners vs. Screeners: A Key Toolset for Day Traders
As I’ve been learning to day trade, two essential tools I’ve come to rely on are scanners and screeners. While they may seem similar, they serve different purposes and are used at different times during your trading day. Here’s a breakdown of each:
Scanners: Your Real-Time Assistant
A scanner operates in real-time, actively searching the market for stocks that meet your chosen conditions as the market is open. It’s perfect for catching sudden changes, such as volume spikes or price breakouts, giving you the chance to react to opportunities as they happen.
- Real-Time Monitoring: Constantly scanning the market for stocks that match your criteria in real-time.
- Active Trading Tool: Used during live trading hours to find opportunities as they unfold.
- Example: A scanner can alert you instantly when a stock’s volume surges by 150% in the last 5 minutes, allowing you to act on it immediately.
I currently use Interactive Brokers’ Trader Workstation and the ZenBot Stock Scanner as my go-to scanning tools. Both provide real-time updates and have helped me spot key opportunities during live trading sessions.
Screeners: Your Pre-Market and After-Hours Analyst
A screener, on the other hand, is used when you’re doing research before or after market hours. It’s not continuously updating like a scanner, but instead provides a static list of stocks that meet your selected criteria at the moment you run it. Screeners are ideal for creating watchlists or filtering stocks based on fundamental or technical factors.
- On-Demand Search: You run it manually, often used to filter stocks based on specific criteria like market cap, price, or technical indicators.
- Static Results: Provides a list of stocks matching your criteria, but doesn’t update in real-time unless you re-run the screener.
- Example: You might run a screener to find stocks that had a 10% price increase and high relative volume today, but it won’t keep updating unless refreshed.
For my screener, I rely on TradingView. It’s user-friendly and allows me to quickly filter stocks based on various technical criteria, which I can then analyze further during my trading day.
Putting It All Together
In short, scanners are best for live trading to catch real-time opportunities, while screeners are typically used for pre-market analysis or building watchlists after the market closes. Both tools are crucial for finding trading opportunities, but they serve distinct purposes depending on when and how you’re using them.
Conclusion:
Getting your day trading setup in place can seem overwhelming at first, but it doesn’t have to be. It’s really about focusing on the essentials – like a solid brokerage, reliable charting software, and a few key tools to help you stay organized and spot opportunities.
This setup is working for me as I learn the ropes of day trading, and it’s a great starting point for any beginner. As you gain experience, you can always adjust and upgrade your tools, but for now, this gives you everything you need to confidently begin your trading journey. Also, this does relate to the specific strategies I’m studying.
