When you start to day trade, it can be a daunting undertaking. You look at the possibility of sitting in a cubicle for the next 30 years, earning your pay and investing sensibly and look for another way. Day trading seems like a good alternative, but it is complicated. There is real risk in learning how to play the market, make short-term trades and build up profits. But there is the potential for make real money that could lead to financial freedom and being your own boss. If you learn how to use platforms like Ameritrade (and others) to your advantage.
Ameritrade’s Thinkorswim platform has been around for a few years now and it is very popular with traditional investors. The type that just make a few trades here and there, managing a portfolio of low-risk index funds and maybe a few stocks. But can it do the job that day traders require it to do. How can Ameritrade perform when put under the stress of a particular day trader’s day.
Day trading relies on volatility. When you make short-term trades that take advantage of fast moving stocks, you need to be able to execute trades quickly and you need the ability to make lots of trades per day, if required. Ameritrade has slightly high commissions that could really hurt your ability to see profit at the end of the day, if you rely on lots of trades. The interface of Thinkorswim is okay, but the lack of hotkeys can lead to lag time on trades and make execution harder than it needs to be.
Ameritrade also has a risk analysis feature that will allow traders to perform a chance analysis on a potential trade. It is a valuable tool to have in your pocket. You can view a risk graph right away that will show the probable lock of any trade setup. A great thing to have if you are new to trading or if you want to check yourself before you make a decision.
The Thinkorswim platform has heat maps, stock scanners that allow you comb the market for trade ideas and streaming video of all the top investor news channels. The constant flow of information is very valuable if you are a day trader. Certain sectors may seem boring such as industrial stocks, but that does not mean investors should ignore them. Build a well-rounded portfolio of great companies. Momentum day trading strategies thrive on super fast moving news and prices. The possibility of making real profits on stocks that are poised to spike is real. So having a platform like Ameritrade that allows you to stay on top of fast-moving financial information is very important to the aspiring day trader.
For new traders, the learning center can provide all sorts of resources to draw on. Loads of instructional videos and daily lessons in how the market works and how the platform itself works are great ways to get better at day trading. For traders on the go, the mobile platform for smartphones has features and an interface nearly identical to the desktop version. So you will never miss a chance to make a trade that will bring you profits.