Learning how to use the thinkorswim desktop is key to succeeding as a day trader. The thinkorswim platform is excellent for traders of all levels, it has tools and lets you monitor the market. You can plan your strategy, and implement it in one convenient, easy-to-use, combined place free of charge. There are more than 400 indicators in thinkorswim, it can be a bit overwhelming without the proper guidance on what to use. Indicators are a great tool for you to use, and they can help guide you in trade entry. They can also assist in identifying the market direction and overall make you a more confident options trader.
TD Ameritrade even offers a mobile option for buying options on the thinkorswim platform, allowing you to trade from a smartphone, mobile device, or iPad. Many people are being drawn to the world of trading nowadays due to how popular it is getting. Many people want to learn but are hesitant on finding the right fit. There is a lot that goes into day trading so definitely you want to make sure you have the right mentor, strategy, and tools to be successful. We will be focusing on how to use thinkorswim on the desktop platform.
More on the Platform
thinkorswim also called TOS, is the trading platform for TD Ameritrade, a U.S.-based brokerage. Tom Sosnoff and Scott Sheridan first created the TOS software in 1999. The platform was quickly well esteemed and was attained by TD Ameritrade in 2009. TOS is an advanced trading platform that allows you to trade just about any instrument. This includes stocks, options, ETFs, bonds, futures, and futures options. Besides trading, the platform lets you perform complex analyses on stocks and potential trades. TOS is available for Windows, Macs, and the web.
TOS allows you to log into a live account where you can make trades using your own money. It also gives you the option to log into your paper trading account which allows you to trade with fake money. Paper trading is used by traders to practice their strategy without having to risk their own capital. Your Cash deposits with TD Ameritrade are completely safe they are FDIC-insured while brokerage funds are SIPC-insured for up to $500,000. TD Ameritrade has also obtained a supplement insurance plan from London insurers that provides an additional $149.5 million worth of protection for securities and $2 million for cash.
Desktop Version
The desktop version is one of my favorites because depending on the data you want to be displayed you have room for it with this platform. All on the same screen which makes it faster and more efficient for trades. I teach my students to set up their desktop platforms like I use mine. The top right is the 1 min chart and the bottom right is the 5min chart. The top left also has a 1min chart with the buy and selling tools just to the right of it. Then in the middle, before you get to the bottom right 1min chart it shows you what pricing hedge funds are doing and contract sizes. Below is an example so you can see what the setup looks like.
If you notice right underneath the top left 1min chart the volume bar is there. This is important to monitor before you enter trades it’s an indicator that can help you pinpoint which way the market will continue moving. This chart is where I draw my support and resistance zones using the drawings tab. There are settings that whatever I draw on my top 1min chart duplicate on my bottom left 5 min chart. The reason for this is once again for a bigger picture of the way the market is trending. Market conditions change continuously and so do stock prices. That is why having these windows will help you monitor everything in real-time.
The bottom 5 min chart helps give you the bigger picture of past performance. This helps you with future trades because in options trading history tends to repeat itself. Meaning, that certain zones and prices will be revisited and these charts help you keep track of it all. You can also set custom alerts such as stop loss zones to help with your trading as well and these alerts should go on your top left 1 min charts.
How to Use the thinkorswim Desktop: Entering and Exiting Trades
A call option gives you the right, not the obligation; to buy a stock and a put option gives you the right to sell the stock. If you believe the market is trending upwards you would purchase a call option. If you felt the market was trending downwards you would purchase, and put contracts. You would then sell your contracts to either follow your strategy or to minimize a loss. Trading options are best to think of it as the probabilities of future price movement. Day traders buy and sell shares of stocks within the same day.
If you are a call writer and sell a call, the upside potential is the premium for the option; the downside potential is unlimited. You want the price to stay about the same or even drop a little. So that whoever buys your call doesn’t force you to sell. If you are a put writer and you sell a put, the upside potential is the premium for the option, The downside potential is the amount the stock is worth. You want the price to stay above the strike price so the buyer doesn’t force you to sell at a higher price than the stock is worth.
On TOS you simply click on the SPY drop down and click on either a call or option. Then under the green and red buttons labeled Join the Bid and Join the Ask, you will see QTY. QTY is the abbreviation for quantity and you will select how many contracts you wish to purchase. Then you simply go down the price that is highlighter gray and look if the number to the left has the amount of contract available you are looking to purchase. You then click on it and you’ll enter the trade. You then let your strategy play out and when you are ready to exit you click on the right of the price in the red column.
On the top left chart on the tabs, you can also look at your previous trades and see how long you were in a trade. You can also see how many contracts you purchased. You can also see the price you sold for. Even how much you have made with all your trades combined for the year. On the top right chart, you’ll notice a yellow button highlighted “On Demand”. You simply click on this button and you transition from live trades to paper trading. Paper trading allows you to practice entering and exiting trades without it affecting the money you have in your live account.
Summary: How to Use thinkorswim Desktop
You learned that learning how to use the thinkorswim desktop is important since TOS has more than 400 indicators. You learned about the thinkorswim desktop platform and how simple it is to enter and exit trades. I can teach you how to day trade like the top 10% without a complicated strategy or any technical indicators, even if you are a beginner. My goal has always been to teach as many day traders to achieve their personal financial goals, whether they are novice traders or experienced traders.
The MK VIP training has plenty of resources to help you get started on reaching your day trading goals. I teach the working class how to earn $10,000 a month through day trading. I help my students avoid the challenges I faced when I first became a day trader. As of now, MK Financial LLC is already the #1-day trading coaching business in the US in just one year. The MK VIP training walks you thru on how to set up your TD Ameritrade account and how to set up your desktop so it can mirror mine. You are just a click away from learning what you need to do to have the winning desktop setup to take your life and salary to the next level.
Learn More
Maurice Kenny has helped over 600 people become financially free through one-on-one coaching, mentorship, and options trading strategy. Many of these new traders are now full-time traders, and they all started by watching his 1-hr webinar.
Feel free to check out other FREE educational resources to help guide you as you begin your new journey to financial freedom.
Also, download a (FREE E-BOOK) by Maurice Kenny, “DAY TRADE LIKE A MILLIONAIRE.”
