Day trading in Argentina can be a challenge. Day trading in general is already a challenge, but there are some added problems in Argentina. First of all, the nightlife doesn’t end until after sunup. Therefore you are many times running on little sleep. Secondly, there are so many beautiful women here; it’s very distracting. Thirdly, and what I want to talk about today, are the problems with internet connectivity.
As day traders, our livelihood depends on being able to execute trades. As any successful day trader will tell you, the most important part of trading is risk control. It doesn’t matter if you can make $500 one day, if you lose $5000 the next day. There are a few things you need in order to control your risk. One, discipline. Two, a trading plan. Three, a functioning internet connection. Without a functioning connection, you are at the whim of what the market will do, because you can’t carry out your trades with discipline, while following your trading plan.
Let me illustrate my experiences with the internet while day trading in Argentina. The first apartment that I had was in one of the richest parts of the city, Recoleta. When I checked the speed it was at 8mb/s. This isn’t too high by Asian, US, or European standards, but it’s quite high for Argentina. On top of this, the internet never went down in the two months that I was staying in that apartment. The ability to rely on your internet connection gives a trader the confidence they need in order to trade confidently.
Then a week ago I moved to a new part of town. It’s called Palermo Hollywood, but its more similar to a recently gentrified Brooklyn. It’s a neighbourhood where young people, foreigners, and the slightly rougher original residents coincide. In comparison to Recoleta the buildings are not near as spectacular, the streets aren’t as clean, and the internet isn’t as reliable. As with most places in the world, the rich have the resources to keep things running. I love my new apartment, but the internet has been down three times this week, twice for unknown reasons, and once for a major storm that took the power out in most of the city.
The worst occasion was on Tuesday afternoon. I was trading the market close, and had some reasonably large positions on. At 3:39pm EST the internet went out in my apartment. Not cool. I threw on some clothes, hucked my laptop in it’s bag, and ran out the door. I knew I had to get to a connection in order to close out my positions before the market closed. I arrived seven minutes later at a cafe about three blocks from my place. I knew they had functioning internet, and so I opened my computer, ordered a coffee, and closed my positions. In that order. It was a scary situation, but thankfully a complete disaster had been diverted.
These are all part of trading on the road. Day trading in Argentina offers many advantages, but you have to be aware of the possible dangers. One thing that Marcello has told me before, is that the internet has to be the first thing you check at an apartment. Day trading is hard enough without trying to fight for a reliable internet connection. Make the internet your first priority while trade voyageuring, and you’ll be much happier. And less stressed out.
For more info on how to learn to day trade, check out the Online Trading Academy.