How to Day Trade with ThinkOrSwim - A Step by Step Guide
Stock Trading Presets: https://tos.mx/6GhLQOh
PDT rules: https://www.sec.gov/fast-answers/answ...
“Stock trading!! Day trading!! Investing!! How do I do it, where do I get started!” I’m going to show you all these as well as how to do them. I’m also going to show you some basic stock market patterns that you can easily spot, how to find hidden stocks that you might not have heard about and give you my own stock trading presets that I use whenever I trade.
First off let's talk about finding the right software. I won’t bore you with the intricacies of every stock trading software out there. So really quick, I'll show you a few of the most popular ones and the one that I use.
For the first one we have Fidelity! They are considered a good overall company, meaning they’re not “thee best” at any one thing but are pretty good at just about everything. They have a trading program called Active Trader Pro which works kind of like the other companies in this list. They don’t charge any fees when you make a trade, which helps out people that aren't trading with much money. And they don’t have too many fees when it comes to having any account issues you might have.
Next on the list is E-Trade! They have excellent tools for doing research and offer lots and lots of study tools These are technical studies, which can help you see what’s going on in the stock market and get a better idea of how each stock is doing. E-Trade also offers free trading, so you won’t get charged if you take a trade.
And now we have my favorite, the software that I use, TD Ameritrade! TADA! They have a program called ThinkOrSwim, this is the best for day trading (in my opinion) and offers lots of tools you can use to make finding the right stocks easy. And just like all the other options I've listed, they don’t charge for taking a trade, so it’s great for if you’re just starting off.
So, for the rest of this video, I'll be using TD Ameritrade's ThinkOrSwim software. Most of the stuff I show you still applies to the other trading programs, but it might look slightly different.
Now before we start!!!! My lawyers told me to tell you that this is what I do and these are all my opinions. I am not a professional. This is entertainment, not my advice.
So, I'm going to start up ThinkOrSwim and show you a few things. Now, I know this might seem a little overwhelming to some people hacking clip but in reality, it’s pretty simple. The first thing I'm going to show you is what a good stock is and what’s a bad stock.
Ok so, notice how in this first stock, everything looks like it’s trending down. And, if you zoom out you can see that over the past year or so, it’s been going in a downward direction. This is called Surprise Surprise a downward trending pattern.
Now, you really want to avoid these downward pattern stocks, because if you put money in them, they go down! Meaning you lose money. Like I said earlier a lot of this stuff is very simple.
The next stock we’re going to look at is this one, by the way, these aren't picked for any real reason other than they make good examples. This stock seems to be not going down. (good observation!) And you might think “That’s good! I should buy this one” NO! Just because the stock isn’t going down doesn’t make it good.
You see it’s not a bad stock but it’s not a good one either. And yes, you could buy when it gets low and sell when it gets high. But it’s not a very safe stock to leave your money in as it could break this pattern at any time and head off in either direction. Really there’s about a 50/50 chance it could go up or down so it’s not all that safe. It’s not bad, but it’s not safe.
This pattern is called “consolidation” and you don’t normally want your money in a stock that’s consolidating because you never know what direction it’s going to go. It’s best to stick with stocks that look like this next one.
This one is a good stock! It looks like it’s trending upwards and that means that if you put money into it, the money will go??? No, not down, up! It’ll go upwards! If a stock is trending upwards it’s considered a good stock and you should consider trading it or at least save it for later.
Timestamps:
0:08 Video breakdown
0:27 Finding the right trading software
2:16 Difference between good & bad stocks
4:26 Explaining what resistance is
5:20 The different types of investing
7:34 ThinkOrSwim day trading presets
8:12 How to find new stocks
10:16 The dangers of penny stocks
11:31 You don't need a lot of money
12:13 Outro