“Escape the Trading Desk: Automate Your Orders and Free Your Time!”
Tired of being chained to your trading screen? Do you dream of closing winning trades while you're crushing it at work or enjoying a well-deserved break? It's time to unlock the power of automation!
Automated order types are your secret weapon for trading smarter, not harder. They let you set predefined rules for your trades, so you can take the emotion out of the equation and make the most of your time, even with a jam-packed schedule.
Think of it like setting your coffee maker on a timer. You get the reward without having to constantly monitor the process. Except, in this case, the reward is hitting your profit targets and managing your risk like a pro!
Ready to escape the trading desk and take control of your trading life? Let's dive into some easy-to-follow tutorials for thinkorswim, designed specifically for busy professionals like you.
Tutorial 1: The "Set It and Forget It" Bracket Order
The Scenario: You've just spotted a perfect entry point for a trade, but duty calls! You have a meeting in 5 minutes, and you can't risk being distracted by the charts. How do you lock in potential profits and protect yourself from losses while you're away?
The Solution: Enter the bracket order, your trusty sidekick for hands-free trading. This order type lets you set your profit target and stop-loss level in advance, so your trade automatically exits at your desired price, even if you're miles away from your computer.
Here's the Play-by-Play:
Open the Order Entry Window: Right-click on the chart where you want to enter your trade and select "Create Order."
Choose Your Order Type: Select the appropriate order type for your trade (e.g., "BUY" for a long trade, "SELL" for a short trade).
Enter Quantity and Symbol: Specify the number of shares or contracts you want to trade and the symbol of the asset you're trading.
Activate the Bracket Order: Check the box that says "Bracket Order."
Set Your Profit Target: In the "Profit Taker" section, enter the price at which you want to automatically exit your trade for a profit. You can also choose a specific dollar amount or percentage gain.
Set Your Stop-Loss: In the "Stop Loss" section, enter the price at which you want to automatically exit your trade to limit your loss. You can also choose a specific dollar amount or percentage loss.
Review and Submit: Double-check all your order details, and then click "Submit" to place your bracket order.
Pro Tip: Consider using a trailing stop-loss order to let your profits run while still protecting yourself from a sudden reversal. It's like having a dynamic safety net that adjusts as the price moves in your favor.
Tutorial 2: The "Snooze Button" for Your Trades: Good-Til-Canceled (GTC) Orders
The Scenario: You've done your analysis, and you're convinced that XYZ stock is poised for a breakout. But you're not about to waste your precious time staring at the charts, waiting for the price to hit your ideal entry point.
The Solution: Hit the "snooze button" on your trading with a Good-Til-Canceled (GTC) order! This order type stays active until you manually cancel it, so you can place your order and go about your day, knowing that it will automatically execute when your desired price is reached.
Follow These Steps:
Open the Order Entry Window: Right-click on the chart or in the "Watchlist" and select "Create Order."
Choose Your Order Type: Select your desired order type (e.g., "Limit Order" to buy or sell at a specific price, "Stop Order" to enter or exit a trade when a certain price is reached).
Enter Quantity and Symbol: Specify the number of shares or contracts you want to trade and the symbol of the asset you're trading.
Set Your Price: Enter the price at which you want your order to execute.
Select Time in Force: Choose "GTC" (Good-Til-Canceled) from the "Time in Force" dropdown menu.
Review and Submit: Double-check all your order details, and then click "Submit" to place your GTC order.
Pro Tip: Keep your trading plan organized by regularly reviewing your active GTC orders and canceling any that are no longer relevant.
Tutorial 3: The "Early Bird" Pre-Market Order
The Scenario: You're catching up on market news before bed, and you realize that a major announcement could send your favorite stock soaring tomorrow morning. But you have an early meeting, and you won't be able to place your trade before the market opens.
The Solution: Be the early bird with pre-market orders! These orders allow you to enter or exit trades before the regular trading session begins, giving you a head start on the action.
Here's How:
Open the Order Entry Window: Right-click on the chart or in the "Watchlist" and select "Create Order."
Choose Your Order Type: Select your desired order type (e.g., "Limit Order" to buy or sell at a specific price, "Stop Order" to enter or exit a trade when a certain price is reached).
Enter Quantity and Symbol: Specify the number of shares or contracts you want to trade and the symbol of the asset you're trading.
Set Your Price: Enter the price at which you want your order to execute.
Select Time in Force: Choose "DAY" from the "Time in Force" dropdown menu. This ensures your order is only active during the current trading day.
Submit Your Order: Click "Submit" to place your pre-market order. Thinkorswim will typically allow you to place pre-market orders starting a few hours before the market opens.
Pro Tip: Remember that pre-market trading can be less liquid than regular trading hours, so be prepared for potentially wider spreads and increased volatility.
These tutorials are your starting point for automating your trading on thinkorswim. As you become more comfortable with these basic order types, you can explore more advanced automation features, like conditional orders and studies, to further enhance your trading efficiency.
So, ditch the trading desk and embrace the freedom of automation! With these tools at your disposal, you can trade smarter, not harder, and make the most of your valuable time.
