With the integration of thinkorswim® on Schwab.com, our trader education team has been fielding client questions about how to take full advantage of this powerful trading platform. Here are their top tips.
Customize your experience
"Traders like to have their trading platform and tools set up just right," says Kevin Horner, a senior manager of trader education at Schwab. "For clients who are new to the platform, I suggest one of the many Getting Started tutorials on our YouTube coaching channel, where Schwab trading coaches go step-by-step through different features and show you how they have thinkorswim set up for their own research and trading."
Find trade candidates
"I'm a big fan of the Stock Hacker tool," Kevin adds. "It allows you to filter and search for stocks that exhibit certain attributes—including not just common stock metrics, such as bid/ask spreads, price performance, trading volume, and volatility, but also company fundamentals and even technical patterns."
"The Option Hacker tool is equally useful for options traders," adds Joe Mazzola, director of trader education at Schwab. "It's similar to the Stock Hacker but created for options, allowing you to scan for available options contracts by such attributes as days to expiration, level of implied volatility, specific market indexes and industries, and much more."
To use the Stock Hacker or Option Hacker functions, log in to thinkorswim and click Scan.
Create chart studies
"Technical traders analyze stock charts to inform their trades, but identifying clear patterns and trade signals can sometimes be difficult," says Cameron May, a senior manager on the Schwab Trader Education team. "With the Studies tool, you can apply a predefined or a customizable mix of stock data—such as price movements and volume—to any chart from any past period, using your chosen technical indicators to deepen your analysis."
To create chart studies, log in to thinkorswim, click Charts, then click Studies in the menu bar above the chart.
Backtest a strategy
"For traders trying out a new strategy, you can use the thinkOnDemand tool to replay any trading period from the last several months and test your skills with simulated trades based on that data," Cameron says. "It's different from paperMoney®, our virtual trading experience, in that you can run simulated trades using past charts and quote data rather than live market data. It's a way to quickly see how a strategy would have played out over hours, days, or weeks had you implemented it in the past."
To use thinkOnDemand, log in to thinkorswim and click OnDemand at the top-right corner.
Move seamlessly among devices
"Desktop, mobile, and web are totally integrated, so any customizations you set up on one platform will instantly be reflected on the other," says Philip Kepler, director of trading platforms at Schwab. "That way, you can research and execute your trades no matter where you are."
Get one-on-one coaching
"Schwab trading clients can set up a one-on-one coaching session with an expert from our trading solutions team," Philip says. "These are experienced traders who can not only troubleshoot but also help with strategy, considerations, and execution alternatives based on your objectives."
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The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.
Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
Past performance is no guarantee of future results.
The paperMoney® software application is provided for educational purposes only, and allows users to engage in simulated trading with hypothetical funds using live market data. Market activity, trade executions, transaction costs, and other elements presented in paperMoney are simulations only. Simulated performance does not ensure success in a live environment.
thinkorswim mobile requires a wireless signal or mobile connection. System availability and response times are subject to market conditions and your mobile connection limitations. Functionality may vary by operating system and/or device.
Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction. Call Schwab at 1-800-435-4000 for a current copy.
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