Thinkorswim Guide: 7 Tabs, Trading, And Tools

What is thinkorswim?

Thinkorswim is a comprehensive trading platform offered by TD Ameritrade that empowers both novice and experienced investors to execute sophisticated trading strategies. The platform operates across multiple devices and interfaces, providing flexibility and accessibility to traders regardless of their preferred method of market engagement. Whether you’re at your desk, on the go, or monitoring markets from anywhere, thinkorswim delivers consistent functionality and powerful analytical tools.

The platform is available in three main versions: desktop, web, and mobile. The desktop version is downloadable software that offers the most comprehensive set of features and analytical capabilities. Mobile applications are available for iPhone, Android, tablets, and smartwatches, allowing you to monitor positions and execute trades from virtually anywhere. Each version maintains core functionality while optimizing the experience for its specific device type.

On thinkorswim, you can trade a diverse array of financial instruments including stocks, mutual funds, exchange-traded funds (ETFs), options, futures, bonds, certificates of deposit (CDs), and foreign currencies (forex). This versatility makes the platform suitable for traders pursuing various investment strategies, from conservative stock positions to complex multi-leg option spreads.

Platform Versatility and Complexity

One of the defining characteristics of thinkorswim is its ability to serve traders at every skill level. The platform supports basic trading activities for beginners while simultaneously providing advanced tools for professional traders executing intricate strategies. Whether you want to execute a simple covered call strategy or construct a complex four-month, four-strike double diagonal spread, thinkorswim provides the necessary tools and functionality.

The platform includes numerous gadgets and trading tools that facilitate strategy development and execution. Live News, which aggregates finance headlines from various sources, keeps you informed about market-moving events. Trader TV provides webcasts featuring video news and comprehensive market analysis. These resources, located conveniently on the left sidebar, help you make informed trading decisions. Additionally, you can create customized Watchlists that display specific securities’ ticker symbols and real-time market data, allowing you to monitor your interests efficiently.

Understanding the Platform Layout

The thinkorswim interface is organized around two primary components: the left sidebar and the main window. The left sidebar contains essential gadgets and tools necessary for your trading work, while the main window displays detailed information and charts. The platform is built around seven main tabs, each dedicated to specific trading and analytical functions.

The Monitor Tab

The Monitor tab serves as the central hub for tracking your trading activity. This is where you’ll find comprehensive information about your orders, positions, account statements, cash balances, and overall trading account status. Every trade you execute appears here, allowing you to maintain a complete view of your portfolio performance and open positions at a glance.

The Trade Tab

The Trade tab contains multiple specialized interfaces for different trading activities. The All Products interface allows you to search for and execute trades across all available instruments. The Forex Trader provides specialized tools for currency trading, while the Futures Trader enables futures contracts trading. Additionally, the Pairs Trader facilitates pair trading strategies, and the Active Trader interface offers streamlined execution for frequent traders.

The Analyze Tab

The Analyze tab provides comprehensive analytical capabilities for evaluating potential trades. This tab enables you to simulate “what-if scenarios” on both real and hypothetical trades, perform volatility and probability analyses, access the Economic Data indicator database, and conduct option back-testing. These tools help you develop and test trading strategies before committing capital.

Other Essential Tabs

Beyond Monitor, Trade, and Analyze, thinkorswim includes additional tabs for charts, watchlists, and education. The Charts tab allows you to customize technical analysis tools and indicators. These tabs work together to create a comprehensive trading environment where you can research, plan, and execute trades.

Buying Stock on thinkorswim

Purchasing stocks on thinkorswim’s desktop platform is straightforward and intuitive. Begin by navigating to the Trade tab and selecting the All Products sub-tab. From here, you can type in the stock symbol you’re interested in and immediately view the stock’s name, last traded price, current gain or loss, borrowing availability, and listing exchange.

For deeper analysis before committing to a purchase, click on the Company Profile button to access comprehensive information about the company. This section includes thinkorswim’s analysis of factors driving the stock’s performance, valuation metrics, sources of value, and key industry trends. Importantly, these views are adjustable, allowing you to customize the information display to match your analytical preferences. This customization capability represents one of thinkorswim’s most powerful features for fundamental analysis.

Once you’ve completed your research and decided on a stock purchase, the actual execution process is simple: enter your desired quantity, select your order type (market or limit), lock in your price and time in force preferences, and confirm your order. Your trade will then appear on your Monitor page for tracking.

How to Buy Options on thinkorswim

Options trading on thinkorswim follows a similarly logical process. Navigate to the Trade tab and locate the Option Chain section. Enter the ticker symbol for the underlying stock whose options you want to trade. The interface automatically displays calls on the left side and puts on the right side, organized by expiration date.

To execute an options trade, select your desired expiration date and click on the ask price for the option contract you want to purchase. This action opens an order form where you’ll enter your desired quantity, select your order type, set your price parameters, and confirm your time in force. After reviewing all details, press send to submit your order. Your options position will immediately appear on your Monitor page.

Learning Options Trading Strategies

Thinkorswim emphasizes education in options trading, recognizing that many investors are unfamiliar with option strategies and common pitfalls. The platform provides comprehensive resources to help you “avoid many of the mistakes” that experienced traders have made. This educational approach begins with foundational concepts and progressively builds toward more sophisticated strategies.

The Analyze tab includes a Probability Analysis tool that helps you determine the likelihood of a stock moving in a particular direction in the future. You can access this tool directly or expand your charts to view probability data. This feature proves invaluable for options traders who need to assess the probability of their options strategies succeeding before committing capital.

Advanced Trading Features and Tools

Technical Analysis and Charting

Thinkorswim provides robust charting capabilities that allow you to modify chart types, adjust time frames, and customize chart settings and styles according to your analytical preferences. These customization options enable you to create precisely the visual environment you need for your trading analysis.

Custom Programming with thinkScript

For active traders who want to develop sophisticated, personalized trading tools, thinkorswim offers thinkScript, a proprietary programming language. Using thinkScript, experienced traders can create custom studies, develop proprietary trading strategies, set up automated alerts, and build tools uniquely suited to their trading approach. This feature transforms thinkorswim from a pre-built platform into a customizable trading laboratory.

Probability Analysis Tool

One of thinkorswim’s most valuable features for options traders is the Probability Analysis tool available on the Analyze tab. This tool calculates the mathematical probability that a stock will move to a certain price level within a specified timeframe. By understanding these probabilities, you can make more informed decisions about which options strategies offer favorable risk-reward profiles.

Accessing Educational Resources

Thinkorswim recognizes that successful trading requires ongoing education and provides extensive learning resources directly within the platform. When you click on the Education tab, you’re taken to thinkorswim’s comprehensive Learning Center. This resource features detailed guides covering everything from basic platform layout navigation to complex entry and exit strategies for various trading approaches.

The Learning Center includes specialized webcast tutorials addressing specific topics such as futures trading mechanics and how to effectively use the Calendar interface, which displays earnings reports, conference calls, and other significant market events. For those seeking additional resources, YouTube hosts numerous third-party tutorials covering virtually any thinkorswim question or feature you might encounter.

Key Features Comparison

Getting Started: Step-by-Step Workflow

For new thinkorswim users, following an organized workflow ensures you don’t become overwhelmed by the platform’s extensive capabilities. Start by familiarizing yourself with the main tabs and their functions. Next, set up a basic Watchlist with securities you’re interested in monitoring. Create a simple chart layout displaying your Watchlist stocks with basic technical indicators.

Once comfortable with navigation and monitoring, practice placing paper money trades using the platform’s simulated trading feature. This allows you to execute trades using virtual capital, learning the execution mechanics without risking real funds. After consistently executing successful simulated trades, transition to small real-money trades while continuing to monitor your performance meticulously.

Frequently Asked Questions

Q: Is thinkorswim free to use?

A: Yes, thinkorswim is a free trading platform available to TD Ameritrade account holders. There are no fees for using the platform, though standard trading commissions may apply depending on the types of securities you trade.

Q: Can I practice trading before using real money?

A: Absolutely. Thinkorswim includes paperMoney, a paper trading simulator that allows you to practice trading with virtual capital. This feature helps you learn the platform and test strategies without risking real money.

Q: What devices can I use thinkorswim on?

A: Thinkorswim is available on desktop computers (Windows and Mac), web browsers, and mobile devices including iPhones, Android phones, tablets, and smartwatches.

Q: Can I create custom trading indicators?

A: Yes, if you have programming experience, you can use thinkScript to create custom indicators, studies, alerts, and trading strategies tailored to your specific needs.

Q: Does thinkorswim support options trading?

A: Yes, thinkorswim fully supports options trading, from simple covered calls to complex multi-leg strategies. The platform includes probability analysis tools and educational resources specifically for options traders.

Q: How do I access educational materials?

A: The Education tab within thinkorswim connects you to the Learning Center with guides, webcast tutorials, and video resources. Additionally, the YouTube thinkorswim channel provides numerous third-party tutorials.

Conclusion

Thinkorswim represents one of the most comprehensive trading platforms available to individual investors. Its dual nature—providing simplicity for beginners while offering advanced tools for experienced traders—makes it an excellent choice regardless of your trading experience level. By understanding the platform’s main components, mastering the essential tabs, and progressively exploring advanced features, you’ll unlock the full potential of this powerful trading environment. Start with basic stock trading, gradually incorporate options and other instruments as your knowledge grows, and leverage the extensive educational resources available within the platform to continuously improve your trading skills.

This article is general information, not personal financial advice. Consider your own situation, or speak with a licensed adviser, before acting on it.