Day trading is one the best ways you can make money, while sitting at home in front your computer. Now, saying it like that makes day trading sound super simple. But it actually takes lots of discipline, planning and hard work to be profitable. And you need to understand how to operate online brokerage accounts, like those offered by Ameritrade. This Ameritrade review will help sort out how to use interactive brokers to further your day trading aspirations.
Ameritrade and other online, interactive brokers offer ways for ordinary people to trade in the stock market. They have relatively short learning curves, intuitive interfaces and enough research and data to allow for people to make some money. The question is, how good are Ameritrade and other interactive brokers for day trading.
Day trading requires multiple trades per day and for them to be executed quickly and flawlessly. There is no other alternative to that. So an interactive broker that aims to get your business as a day trader needs to be able to handle multiple times a day, with a commission structure the does not eat into the profits to a great degree. With Ameritrade, that structure is not there.
The commissions on Ameritrade’s Thinkorswim platform are not very conducive to day traders. They are a bit high and they can add up if you are making multiple traders per day. That said, Ameritrade can be a decent gateway into investing, which can get you on the road to being a day trader. The research tools, risk analysis feature and the addition of hot keys make Thinkorswim a pretty good place to start for aspiring traders.
The On Demand feature is great because it allows traders a chance to try out a trade and see what might happen, without real risk. It is like paper trading on demand. With other brokers, a service like this might be considered premium and be up for a charge. But Ameritrade has it as part of their normal package.
Traders can use the Thinkorswim platform to find stocks with scanners and view heat maps of where the stocks are the hottest. The third-party research that is available to every trader that uses Ameritrade is very robust. You can find out everything you need to know about a particular company or stock very easily. There is also a number of instructional videos that can enhance a trader’s education.
Day trading is all about managing risk. You can use the Ameritrade tools to identify the likely risk and then decide what to do about it. With risk analysis tools built into the Thinkorswim platform, you can project your risk on a particular trade, decide what to do about it and then hit the execute button. All in one platform. That brings the risk management right in line with other activities as a day trader.
Whether you use Ameritrade or another interactive broker, a great move is to work with a day trading education site to gather the proper strategies and techniques that will lead to profit. It will take hard work and discipline, but it is worth it, if you can build enough profits to be financially independent.