Why practice with thinkorswim paper money? TOS has been owned by TD Ameritrade, since 1975, thinkorswim is known for its elaborate and customizable interface packed with research and analytics. TD Ameritrade has 11 million client accounts with over $1 trillion in assets. Thinkorswim is a trading platform with desktop, web, and mobile versions. The desktop version is downloadable software. Thinkorswim also has mobile apps that are available for iPhone, Android, tablets, and smartwatches. The different versions have different abilities, but overall, you can trade stocks, mutual funds, ETFs (exchange-traded funds), options, futures, bonds, CDs (certificates of deposit), and forex (foreign currency) on thinkorswim.
JJ Kinahan, the chief market strategist at TD Ameritrade, says thinkorswim is best for active traders and investors who are hoping to interact with the market. But because the platform has such a wide range of technical features and trading tools, experienced traders can enjoy it just as much as first-timers. “It is very detailed. It allows you to trade at a very basic level, or at the most complex level you’d like to,” he adds. “For options — you can do something just like a simple covered call. But on the other hand, if you want to do a deep-and-wide, four-month, four-strike, double diagonal spread straddle-strangle swap, we’re your guys.”
TD Ameritrade doesn’t charge platform or data fees to have an account. They offer $0 commissions on online, U.S. exchange-listed stocks, American and Canadian ETFs, and options (though options trades have a $0.65 per-contract fee). Over-the-counter stocks that aren’t listed on a U.S. exchange come with a $6.95 commission. Broker-assisted trades generally cost $25. According to the Financial Industry Regulatory Authority (FINRA), TD Ameritrade is both a brokerage firm and an investment adviser firm.
TD Ameritrade is also a member of the Securities Investor Protection Corporation, (SIPC). SIPC protects customers against the loss of cash and securities up to $500,000 should the brokerage firm fail. TD Ameritrade also has an asset protection guarantee; it vows to reimburse customers if they lose cash or securities because of fraud. Without having to put your own money on the line TD Ameritrade officers a paper money account on the thinkorswim platform. Traders use the paper account to practice.
Why Paper Money?
Paper money is designed to get you accustomed to the stock market. When thinkorswim in paper money mode, data is delayed by 20 minutes. The trading platform requires a funded account to gain access to real-time market data. Paper money allows you to practice without risk. You still have access to tools in paper money mode so that you have the full experience when you decide to transition to live mode. According to TD Ameritrade, the average time it takes for market orders to be filled is 0.06 seconds. Thinkorswim trading platform has more than 400 different charting patterns and offers wide customization.
One of TD Ameritrade’s priorities is education and welcoming you even if it is your first time trading. The thinkorswim platform was intended to teach people to understand risk right from the start. If you click on the Education tab, thinkorswim will take you to its Learning Center. It features guides on everything from platform layout to entry and exit strategies to the Forex Trader interface. The Learning Center also has webcast tutorials on how to trade futures and how to make use of the Calendar, an interface that includes earnings reports, and conference calls. Off-site, there are YouTube tutorials for pretty much any thinkorswim question you can think of.
Paper money helps you see what outcome your investment decisions might lead to. With paper money, you can see the effect of any given sum on money before you invest your own money. The benefit is making real trades without using real money. Through paper trading, you never have to worry about losing your hard-earned money and in the process are practicing your trading strategies. A smart investor makes sure they cover all their bases before entering into a monetary commitment; paper money allows you to do that.
Strategy and Emotions
It is important to have a good well-tested strategy down because it is what you are using to try and earn money in the future. Once you have practiced enough times where your paper money is consistently earning gains then you can enter the live market. Once you enter the market, I suggest only purchasing one contract until you are consistently winning most of your trades for that week. Keep that momentum and if it is the same for a few weeks then you can start increasing contract size and repeat the same method. This is done to practice risk management and protect your capital. To start trading options, you can start with as low as $100. The amount you begin with is completely up to you. Trade with money you can afford to lose; because the reality is you can lose it all.
It is ok to start small, you also don’t need multiple brokerage accounts for a successful trading experience. You need to keep in mind if you do decide to start small then your gains will also be small. But the important thing is to keep an open mind and be realistic. You can start options trading with $1000 and think your account will be over $15,000 by the end of the week. The next thing you need to do is focus on time because options trading not only requires you to be attentive but to invest time as well.
Emotions are truly one of the biggest downfalls for options traders; if you learn early on to get this in check will save you money and time. Emotions such as fear and greed can have negative effects that cause day traders to act impulsively. Fear may also turn to greed when a trader holds onto losing positions for a long period; fearful of taking or accepting a loss. Anxiety is something that is seen immensely in day trading. One main reason is that you don’t know for sure which way the stock market will go. The unknown tends to send people into a state of panic or worry. Another emotion that causes options traders to lose their cool is fear of missing out (FOMO). An increase in fear will often lead to “panic selling”. Day traders will rush to get out of trades in an attempt to avoid greater losses. Or act hastily and rush into a trade, fearful of missed opportunities to make money. A negative mindset can lead to anger and depression and have a significant impact on your trading.
Summary: thinkorswim Paper Money
As you can see paper money is nothing beneficial to your trading journey. Paper money gives you the ability to approach trading to improve and grow. 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. Even as seasoned as I am now I still use paper money to practice trading. As of now, MK Financial LLC is already the #1-day trading coaching business in the US in just one year. You are just a click away from learning what you need to become a day trader with any amount of capital and take your life and salary to the next level.
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.”