Battery Backup and Surge Protection For Traders

Sadly, battery backup and surge protection for traders is probably one of the furthest things on a traders mind for both inexperienced novices as well as many experienced professionals.

Major storm season's should turn on a lightbulb in our heads though, and help us all to remember the importance of planning ahead for the "what if" scenarios.

As a trader, working on improving results of a trading system/strategy should be our #1 priority. Improving results is more than just trying to figure out which stocks or options to select though...

Think about a situation where you have just opened a position in a stock with $10,000, and this position is for a quick scalping trade. You expect to be in the position anywhere between a few seconds to a few minutes.

You bought your shares for $20.00/share and are watching the chart closely. All of the sudden, the lights in your house go out along with all the power to everything else in it, including the computer you use to trade with! How do you think you would you feel and what would you do?

If this hasn't happened to you yet, that's great, but don't think that it can't or that there is no reason to plan ahead and put in place a battery backup and surge protection system, just in case. I've been in this exact position before, several times, and I can tell you it's not a good situation to be in.

Battery Backup and Surge Protection for Traders

I remember clearly, thinking to myself, "Oh Sh_t! What the hell am I going to do now?" on more than one occasion. I remember looking around to see if "this was really happening" and then scrambling, first looking to see if I had phone service to call my broker....nope....

Then looking to see if I had cell phone service......YES!.... and then looking around for the telephone number to my broker only to find out that I had become so accustomed to using my computer, that many of my contacts were on my PC...

Finally after going through the old "paper" files and finding my original brokerage account application from years ago, I found the telephone number. Then of course, I called on the cell phone and was put on hold...

I even remember turning on my laptop thinking that maybe I could connect to my brokerage account with it since it ran on batteries, forgetting that I did not have an aircard at the time so it ran off my wireless router, which needed electricity to run! During a panic situation like this though, my mind was not thinking clearly... (but all the steps seem to take forever to go though).

Here's another situation I found myself in where having some sort of battery backup and surge protection for traders would have saved the day: Similar situation to above, except that many times when the power does go out, it's during a storm so you can sort of expect the possibility of the power going out...

This time was different though, lights, computer and everything else in my house lost power, only this time I didn't have a position open (which was very rare during this time period), I was just watching charts looking for a good entry.

Since I had no position open, I initially went thru the same functions just to make sure I was prepared, just in case: checking the phone, cell phone, brokerage number (which I had on speed dial on my cell phone by this time). Then I looked outside and it was nice and sunny....

I walked outside to see if my neighbors had lost power also and wouldn't you know, my local electric company was in the process of switching over from standard electric meters to digital meters made by Itron (which happened to be a stock that I was trading during that time period also and I knew about the company's popularity and growth). The power went out in my entire house because the service men were going to each house and removing the old meters and replacing them with the new one's, without knocking on the customer's door and letting them know. What's the matter, they didn't think there was a hyped up stock trader inside working from home? It only took a few minutes, but hey, come on!

So in the 2 scenarios above, having some sort of battery backup system in place ahead of time would have been ideal. I have other stories about similar situations and some of them I actually lost quite a bit of money where I think I would not have if I was prepared ahead of time.

Besides a battery backup, having surge protection provides some protection against not just a surge from a storm, but surges can really happen at any time due to a number of reasons and happen so quickly that being prepared ahead of time is the only chance of being protected, just in case.

Here's a video I found on YouTube for some more background on a battery backup and surge protection, not just for traders, but, to have just in case. The gentlemen in the video makes a mistake at the end of the video but besides that, the video does provide some good background information in general:

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