Hardware

• In order to access the markets and download the necessary data a day trader needs to buy, sell and process information with, a trader needs to have access to a computer that has up-to-date technology. Charting software and online brokerage data is often provided using the latest Internet technologies. As such, it is important to have a state-of-the-art computer. Most personal computers that are less than two years old offer sufficient technology to meet the minimum system requirements for a day trader.
  
  

Connection Speed

• Day traders rely on speed. Information has an expiration date and day trading information has a very short shelf life. It is vital that a day trader gets real-time market information, including the current market price of the equity he is trading and any news that is related to that equity. A dial-up Internet connection is not sufficient for a day trader's needs. At a minimum, it is necessary to have a high-speed direct service line (DSL) connecting the day trader's computer to the Internet. Some day traders even have a backup DSL service to ensure they stay connected in the event their service provider experiences down time.
  
  

Software

• Vital day trading requirements include real-time price information, reliable stock charting software and up-to-the-minute news information. Most online brokers provide real-time pricing information, so it is possible for a day trader to get by with standard Internet software that accesses their broker's website tools. Some traders will want more than their broker offers, so there are proprietary trading software platforms available, usually for a fee, for those who wish to get more sophisticated.
  
  

$25,000

• The Securities and Exchange Commission has determined that day trading is extremely risky. As a result, they have set certain brokerage requirements that must be met in order to day-trade. Before you can engage in day trading activity, you must deposit at least $25,000 in your brokerage account. If your account falls below this minimum, your broker will restrict your trading privileges and your account can potentially be frozen for up to 90 days.