Starting out as a day trader, you could go through a plethora of interactive brokers before you find your favorites. It takes a while to understand what at the elements that you need and how to customize an interface to make sure that your day goes smoothly. What you need is an Ameritrade review that goes over the ins and outs of the Thinkorswim platform and how it can help you get to the next level as a day trader.
The major downside that you will hear about in any Ameritrade review is the cost of commissions. They can range in the $6-$10 range and as they accumulate, they can really put a dent into your profits. Even with the low minimum balance, because day trading requires so many trades per day to execute, you will get it on the commissions in a way that can hurt your overall bottom line.
But for beginning traders, the Thinkorswim platform may be worth it. The research and data arm are great for investors that are just getting their feet wet and trying to understand how it all works. The tools that Ameritrade offers can bring your investing game up to the next level. There is third-party research, like streaming CNBC news video, market heat maps and streaming quotes in real time can make a novice trader blow up with actionable information.
The technical analysis tools that Thinkorswim offers can be very valuable for advanced traders. If you are trading in forex, options or futures, Thinkorswim can offer customizable screeners and a mock paper trading account that allows you to test out trades in real time. That is valuable in the fast moving options or futures markets and allows you to map out your risk before you really get in trouble.
No matter what platform you use, you need to make an effort to practice day trading before you go out into the real market. You can start paper trading, working with virtual currency in a simulated trading environment where you get to learn the ropes without risking real money. That is where the risk analysis tools that Ameritrade offers can come in very handy for a day trader.
All day trading means is that you are hunting for volatility. You are looking at the market every day, looking for a stock that is about to make a big move in the market and you are trying to profit from it. There is no other way to make a real living as a day trader. Ameritrade is working its way to being a good platform for day trader by adding customizable hotkeys and letting users dictate how they are going to use the interface. Day traders need a fast execution and they like to have control over their environment.
That is where day traders really make their money. By spotting stocks every day that will bring your profitability to another level. When Ameritrade ups their game and gives day traders what they need to be successful that means Thinkorswim is going to the platform of the future.