Home Trading Checklist

There are many things to consider when planning your environment for successful trading. It is better to start with the basic building blocks so that you can create your future share trading or share investment lifestyle.

Ask yourself questions such as:

• Do I need to be limited to working at my desk?
• "What is my lifestyle and how will share trading fit in?" The better the planning the less distractions you will have, leaving more time for the important things in your life.

We suggest you consider the following;

Paperwork:

Trading requires a lot of paperwork, amongst other things you will need to set-up stockbroker accounts, bank accounts, cash management trusts and CHESS accounts. You will be asked for your Tax File Number, ABN (if trading as a company or SMSF) driving licence number and a myriad of other personal details. Making sure that all of these details are kept readily available will save you time and hassle when dealing with Institutions.

Get into the habit of creating a separate file for each trading account and be thorough in filing your paperwork. If you have a scanner then create digital copies of all your important documents and store in a safe place, even on the internet (i.e. An FTP site) so that you can access at anytime from anywhere.

Infrastructure:

This can be broken down into 2 essential components: a phone and a computer. We suggest an SMS-capable mobile phone or a PDA, iPhone, Black Berry and a reliable computer that is connected to the internet, preferably on a broadband connection although 'dial-up' is sufficient. Even a notebook computer with a GPRS card is adequate (It will also allow you to trade from the beach!). If you are a frequent trader we suggest you have a back-up plan, think about what you would do if there was a power cut or the telephone exchange stopped working. At the very least you need to have telephone contact with your broker or CFD provider.

We recommend that you utilise a separate e-mail account for your trading activities, a work e-mail account may not be secure and do you really want your co-workers to have access to your personal details? There are many free web based e-mail accounts that provide adequate storage for attachments, you can access from any computer with an internet connection and also download onto your local mail server. Be aware that yahoo and hotmail accounts can have issues with spam filters etc. It is a good practice to ensure you back-up your files regularly. There are some very cost effective solutions available that can include off-site storage for all your data files, trading records etc. Consult with your ISP to see what they can offer.

Information:

To access the stock market prices you will need an Australian Securities Exchange (ASX) data feed. Many of the on-line brokers & CFD providers include a data and a charting package in your account. Just be sure that the quotes are not delayed, and in the case of CFD providers, you are preferably getting direct market access prices. It may also be worthwhile shopping around for the best deal you can get. If you are a frequent trader you should be able to get data for free, otherwise expect to pay between $30-$100 per month depending upon the functionality included. If you are a less frequent trader it is possible to obtain 'end of day' charting for free (e.g. incrediblecharts.com).

With a little forward planning, share trading and/or derivative trading can be a viable alternative. Just ensure your records are up-to-date and you have the right set-up for you so that everything you require is at your fingertips