Thinkorswim for Dummies: Step by Step Trading Tutorial

Thinkorswim is a powerful trading platform that can seem intimidating at first, but don't worry, we're here to break it down into simple steps.

The first step is to create a thinkorswim account, which is free to sign up for. This will give you access to the platform's vast array of tools and features.

To get started, you'll need to fund your account with at least $100, which is the minimum requirement for trading on thinkorswim. This is a one-time deposit, and you can withdraw your funds at any time.

As you navigate the platform, you'll notice a dashboard that displays your account balance, open positions, and other important information. This is a great place to start your trading journey.

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To get started with thinkorswim, you'll need to sign in with your account information in the upper right-hand corner and click the green "Sign In" button.

If you don't have an account yet, you can click the "Tools & Platforms" option in the menu and select the "thinkorswim" platform.

To download the thinkorswim application, you'll need to open an account with TD Ameritrade, which will give you access to the platform.

Once you've downloaded the platform, you can choose between a real account and a paper trading account with the toggle button.

The paper trading account is great for practice trading, and it will ask you to login or create an account when you open it.

The real version of the platform will look the same as the paper trading version, so make sure you're in the right account.

You can easily switch back and forth between your real and paper trading accounts using the toggle button.

The thinkorswim platform has a lot of features, but don't worry, we'll take it one step at a time.

To get started, let's focus on the paper trading account, as it's a great way to practice trading without risking any real money.

Broaden your view: How to Paper Trade on Thinkorswim

Thinkorswim is a powerful trading platform that offers a range of tools and features to help you get started with trading.

You can start trading with a minimum account balance of $1,000, which is a relatively low barrier to entry.

Thinkorswim offers a variety of trading accounts, including a paper trading account that allows you to practice trading with fake money.

With thinkorswim, you can trade stocks, options, futures, and forex, giving you a wide range of investment opportunities.

The platform offers a range of order types, including market orders, limit orders, and stop-loss orders, which can help you manage your trades and minimize losses.

Thinkorswim also offers a range of technical indicators and charting tools to help you analyze the markets and make informed trading decisions.

Buying stock is a straightforward process on thinkorswim. You can type in the symbol on the All Products sub tab to see the name, last traded price, gain or loss, and other details.

One way to initiate a purchase is to find the Underlying section and click the ask price, labeled Ask X. An order form should come up at the bottom.

To complete the purchase, enter how many shares you want, the price, what order type you want, and how long you want it to be good for. Then confirm and send.

Trade executions are generally fast, with average market order execution times of 0.06 seconds.

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Trading on thinkorswim is a breeze, thanks to its user-friendly interface. You can buy stock on the desktop by pulling up the Trade tab and typing in the symbol on the All Products sub tab.

The Trade tab is where the magic happens, and it's adjustable, which is a game-changer according to thinkorswim's opinion. This means you can tailor your order to your liking.

To buy stock, find the Underlying section and click the ask price, labeled Ask X. An order form will pop up at the bottom, where you can enter the number of shares, price, order type, and time frame.

Trade executions are lightning-fast, with an average time of 0.06 seconds for market orders. This is music to any trader's ears.

Buying options on thinkorswim involves navigating to the Trade tab, finding the Option Chain section, and typing in a ticker symbol. Calls are on the left, puts are on the right, and you can select an expiration date.

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You can then click on the ask price and fill out the order form, entering your desired quantity and order type. This is where you can get as basic or as complex as you want, according to thinkorswim.

To confirm your order, review it one more time and submit it. Your order will then appear on your Monitor page.

On a similar theme: Thinkorswim Order Types

TD Ameritrade owns ThinkorSwim, making them essentially the same platform.

ThinkorSwim is a top-notch platform for practicing trading on a simulated account, and TD Ameritrade's paper money simulator is the best we've tried.

You can download ThinkorSwim to learn and practice trading without risking real money.

TD Ameritrade now offers free trading for stocks and ETFs, following Robinhood's lead.

ThinkorSwim is a great all-around broker for investors and traders, making it a solid choice for those getting started.

TD Ameritrade's ownership of ThinkorSwim means you can use their platform to start setting up and learning to trade.

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To get started with trading, you'll need to learn the basics of using a trading platform like ThinkorSwim. Learning to use ThinkorSwim requires some effort, but it's worth it.

First, you'll need to download and log in to the platform. This might seem daunting, but it's a straightforward process. Once you're logged in, you can start exploring the various features and tools available.

ThinkorSwim offers a range of customization options for your charts, including filter studies. These can help you identify trends and patterns in the market. You can also set up trade alerts to notify you when a specific condition is met.

One of the most powerful features of ThinkorSwim is its scanner tool. This allows you to scan for options trades and place a trade with ease. You can also use the scanner to short stocks and other assets.

To get the most out of ThinkorSwim, it's a good idea to set up active trader and big buttons to trade. This will give you quick access to the tools you need to execute trades.

Here are some key features to explore in ThinkorSwim:

Thinkorswim's charting software is incredibly powerful, with over 400 different charting patterns to choose from. This means you're sure to find one that suits your trading style.

You can customize your charts to suit your needs, changing the chart type to options like Candle, Bar, Line, Equivolume, or Heikin Ashi. The default chart style is a candlestick, with a price column on the right and time along the x-axis.

To view different stock charts, simply click the "charts" tab on your dashboard and type in the ticker symbol you want to look at. You can then switch between line and candlestick charts by clicking the "style" button.

You can also add pre-built studies to your chart, such as bollinger bands and moving averages, under the "studies" button. This will give you a more in-depth view of the stock's performance.

Curious to learn more? Check out: Best Thinkorswim Studies

Thinkorswim offers an impressive array of charting patterns, with over 400 different options to choose from.

You can customize the charts to your liking, selecting from various chart types such as Candle, Bar, Line, Equivolume, and Heikin Ashi.

The default chart style is a candlestick chart with a price column on the right and time along the x-axis.

Rectangular bubbles display the lowest and highest prices in the time frame, while icons indicate earnings announcements and stock splits.

You can also adjust the time frame, colors, cursor, and background to suit your needs.

The charts also allow you to add studies such as volatility indicators.

You can share your charts with others and even make notes with drawings.

To view multiple charts at once, simply click on the bottom of the charting software.

This feature is helpful for quickly comparing different charts.

If you hit the "trade" button on the side, you can quickly make a trade, but be sure to do your research first.

You can also change the settings for how you view the charts and what you would like to have on your dashboard by clicking the settings wheel icon.

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To add another chart next to the one you're viewing, click the 9-dot grid icon and select Customize grid.

Then, click the middle "+" icon to add a grid to the right.

You can add another row of grids by going back to Customize grid and selecting the first icon on the Sidebar box.

This will place another grid below the current two.

To view a stock in multiple chart time frames, change the second chart's link to a different symbol.

Then, select the desired time frame, such as 5D:15m, to view the chart in a different time frame.

You can view both the daily and 15 minute charts together by clicking on the "D" (day) menu item at the top of the chart.

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ThinkorSwim is one of the best trading platforms out there.

To learn how to use it effectively, you'll want to start with the TD Ameritrade paper money course, which is a great way to get started on the right foot and protect yourself from making costly mistakes.

This course will save you countless hours and massive headaches trying to learn how to set up ThinkorSwim all on your own.

Trading is challenging, but it's even more challenging when you don't know the mechanics of the broker you're dealing with.

You must fund a TD account to access their ThinkorSwim paper money trading platform, which is worth it.

Using a platform like Robinhood or Stash won't give you the fast executions and real-time data you need to trade effectively.

You want power, and ThinkOrSwim has the tools you need to trade.

The simulator is a great way to get yourself acquainted with the platform and make navigating the ThinkorSwim paper money account much easier as you practice.

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You can log in to your thinkorswim account on the TD Ameritrade website or mobile app. To do this, go to the login page and enter your username and password.

Thinkorswim has a robust security system, including two-factor authentication, to protect your account. This feature requires you to enter a code sent to your phone or email in addition to your password.

Thinkorswim doesn't charge platform or data fees, according to its pricing page.

TD Ameritrade's thinkorswim platform offers $0 commissions on online trades for U.S. exchange-listed stocks, American and Canadian ETFs, and options, except for a $0.65 per-contract fee.

You'll pay $6.95 for over-the-counter stocks that aren't listed on a U.S. exchange.

Broker-assisted trades generally cost $25.

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TD Ameritrade is a well-established and reputable brokerage firm with a strong track record.

It's a member of the Securities Investor Protection Corporation (SIPC), which protects customers against the loss of cash and securities up to $500,000 in case the brokerage firm fails. This gives you peace of mind when managing your account.

TD Ameritrade also has an asset protection guarantee, promising to reimburse customers if they lose cash or securities due to fraud.

This guarantee provides an additional layer of security, allowing you to trade with confidence.

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The account dashboard is where you'll spend most of your time as an investor. It's where you can monitor your progress and make informed decisions.

Your buying power is prominently displayed on the top left-hand side of the dashboard, giving you a clear idea of your available funds. This is a great starting point for planning your investments.

Below the buying power, you can research stocks by typing in their ticker symbol. This will bring up the latest news articles related to that stock, which can be a valuable resource for making investment decisions.

You can also watch live news channels, including CNBC, directly on the dashboard. This is a great way to stay up-to-date on market trends and events.

Your watch list is another key feature of the dashboard, allowing you to keep track of the stocks you're interested in. You can add or remove items from this list as needed.

If you want to customize your dashboard, you can click the "+" button in the lower left-hand corner to explore additional gadgets. You can also delete gadgets that are no longer useful by clicking the "delete" button in the top right-hand corner of each one.

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Adding a new watchlist is a straightforward process. Click the "+" at the bottom left of the app and select Watchlist in the popup.

To give your new watchlist a name, simply type it in. I've named mine "Stocks" and added the symbol MSFT under the Symbol column. This adds the first stock to your watchlist.

You can continue adding symbols to your watchlist by typing them in. I've added a few more symbols that include the FANGs. If you want to edit the name of a watchlist, click the watchlist name, then edit and select the watchlist to edit.

To create another watchlist, click the "+" and select Watchlist again. I've named mine "BigCap" and added the following symbols: AMZN, GOOG, TSLA, and AAPL.

As you add more symbols to a watchlist, a scrollbar will appear on the right side of the watchlist. You can click and drag the lower watchlist to give the upper watchlist more room and remove the scrollbars.

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To link a watchlist to the chart, click the link icon to the right of the first watchlist and select 1. You can do the same for the other watchlist and select 2. The chart also has a link icon to the right of the symbol field. Change it to 1.

By linking your watchlists to the chart, you can easily view the performance of your stocks. For example, if you click MSFT in the Stocks watchlist, the chart will update with the symbol MSFT.

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Monitoring your trades is a crucial part of managing your account. You can do this by clicking the "monitor" tab on your dashboard in the top lefthand corner.

To see the status of your orders, check the tabs on your dashboard. Orders that are working but haven't been filled will be under the "working" tab.

If an order has been executed, it will be under the "filled" tab. This is where you'll see the trades that have been completed.

If you've cancelled a trade, it will roll down to the "cancelled orders" tab.

thinkorswim offers various tools for monitoring and supporting your trading activities. You can use the platform's real-time streaming quotes to stay up-to-date on market prices and trends.

The thinkorswim platform also provides a range of technical indicators and analysis tools to help you make informed trading decisions. For example, you can use the Relative Strength Index (RSI) to gauge market momentum and make more accurate trades.

The platform's mobile app allows you to access your trading account and monitor your positions on-the-go. This is especially useful for traders who need to stay connected to the market at all times.

You don't have to be an experienced trader to use thinkorswim, thanks to TD Ameritrade's focus on education. One of the mistakes new traders often make is looking at an opportunity and going starry-eyed at how much they can potentially gain, but experienced traders ask themselves, "What can I reasonably lose?"

The thinkorswim platform wants people to understand risk right out of the gate, so you can avoid common mistakes. The platform's Learning Center features guides on everything from platform layout to entry and exit strategies.

You can find tutorials on how to trade futures and how to make use of the Calendar, which includes earnings reports, conference calls, and more. TD Ameritrade saw a 300% increase in usage of its official Education tab last year.

The No. 1 video was a tutorial about stock fundamental analysis, showing that retail traders are eager to learn how to understand the market better.

Monitoring your trades is a crucial step in the trading process.

Click the "monitor" tab on your dashboard to keep track of your trades.

If the order is working but hasn't yet been filled, it will be under the "working" tab.

If it has been executed, it will be under the "filled" tab.

If you have cancelled a trade, it will roll down to the "cancelled orders" tab.

Open positions that you are rolling out to a different month will be under the "rolling" tab.