✅ #1 way to place an order using ThinkOrSwim (Beginner Friendly for 2020)

the day trading secret that nobody told you that’s the topic of today’s video so stick around [Music] all right i have thinkorswim brought up and i’m going to dive right into this i want to share with you the number one best way to buy or sell a stock in the markets using thinkorswim this is something that a lot of people aren’t talking about and it’s something that beginners don’t typically know anything about and it can save you a ton of money so let’s dive into this i first want to just start off by talking about market orders versus limit orders what they are once we have that understanding we can dive a little deeper into the secret that i’m going to give you today so market orders are just saying to the broker take this order and get whatever price you can for it you can see the danger in that if you submit an order and you get a big move in the stock you might get a fill that’s way above or way below where you actually want to be filled so it’s a way to get in very quickly or a way to get out very quickly typically stop losses are market orders aside from that i don’t know any other application for a market order that i would use it for i would only use it for a stop loss so you can kind of put that in a category by itself stop losses market orders that’s it no other application just leave it alone just my opinion now moving on to limit orders a limit order says if you’re trying to buy a stock you’re telling the broker i’ll buy it but only at the certain price below if you’re shorting you’re saying i’ll go ahead and sell it but only at a certain price or higher so for example if you wanted to buy a stock at seventy nine dollars and it’s trading at seventy nine ten and you submit that limit order of seventy nine dollars nothing will happen unless it gets down to that price once it gets to that price you’re saying i’ll accept it i’ll take that fill at that price that’s the difference so you can see it’s a free-for-all get whatever price you want for market order for a limit order it’s saying specified price or better they can’t give you a worse price what can happen though in the case of a limit order is that say price action gets close to your price and you’re thinking hey i’m gonna get my fill look at me and then a big volatility wave comes in and boom it drops it can actually skip your order and you don’t get filled at all and you’ll miss the move this has happened to me countless times when i began trading when i began day trading i’d get an order set up i’d feel really good about it the pattern would be perfect and then it would blow right through my order and i’d never get filled and i’m left wondering well what happened and what happened is you just got skipped you maybe someone got filled maybe one person two people ten people got filled but if there’s a bunch of orders sitting one penny above the high a day and you’re trying to play a high update breakout and orders rush in not everyone’s going to get filled so a lot of times you’ll get skipped so i did some research and i figured out a way around this and that leads us to the big secret that i want to tell you about the secret i’ve been withholding that you’re interested in is something known as a stop limit order sounds similar to a limit order but it has the word stop in it and i’m going to show you how to set it up because it’s super effective and i want to go ahead and just describe it to you first so that example i gave you about trying to buy a stock one penny above the high it got blown through and nobody got executed it jumped it skipped them well with a stop limit order what you can do is you can create a little range you can say yes trigger my order at one penny above the high but i’m willing to accept slippage or a higher price up to 10 cents above or five cents above whatever you want it to be you set what is called the stop and that stop will trigger the order and then between the stop and wherever you want to set the limit that’s the range you’re willing to accept so you could get filled anywhere within that range but not above okay so it’s restricted like a limit order but there’s a less chance of being skipped because now instead of saying only execute me on the penny you’re saying only execute me within this tiny range that i picked so that might be a little confusing it might sound kind of crazy but now that you’ve heard the description let’s jump into the example and i’ll show you exactly what it is so over here on the side you can see i’m toggling open and close the active trader window if you don’t have the active trader window you can open it up here in the settings for the chart and put the sidebar in and that’ll allow you to open up the active trader window so once you have this open let’s pretend that you’re trading amd and let’s just create up a hypothetical scenario so let’s say i only want to get triggered on amd if it goes above 78 dollars okay let’s pretend this is a little breakout strategy and i want to take it long over 78 dollars so what i can do here is i can open up this trg with brackets and that will give me the option to create a stop loss and a target and i can enter in this stop limit order so i go ahead i’ll enter in here let’s say i want to have my stop loss be 25 cents and i want my take profit to be at 50 cents okay and i’m gonna buy 500 shares so i’ve got that all figured out it’s all pre-programmed and now i’m waiting oh and you can see we’re above 78 so we might have to do it a little bit higher so now i’m going to say i want to buy this if it goes above 78.08 so i’m going to go ahead and what i’m going to do is i’m going to go to 7808 on this ladder i’m going to come over to the green side which is the buy side and with the auto send turned off i just go ahead and click it and it brings this screen up and what you do is just click edit and now i’m going to move myself out of the way now you have this order entry kind of ticket window right here where you can go in and you can mess with the order so what we’re going to do is we’re going to see here that 25 cent stop loss is here 50 cent take profits there okay so that’s just part of my trade that’s already set up now the key is the entry which is the green bar you come over here and you see market if i enter this order where it is right now it will execute me at market value wherever that happens to be that’s what i don’t want that’s for a stop loss not for trade entry so i come to the order type where it says market i click this and i select stop limit now what this gives me is a stop which is basically a trigger to make the trade active so i’m going to say i want this to be active at and we’re jumping around here i’m going to say 78 20 or maybe 15. let’s do 15. see if we get triggered and then i will accept a price between 78 15 and let’s say for example 78 20. so let’s go ahead and let’s just put in 78 20. so i’m willing to accept an entry anywhere in this area but not outside of that not above that and let’s see if we get triggered i’m going to click confirm and send i’m going to send that out you can double check everything here all right the orders out that triggered me right away that’s really bad example because it triggered us too quickly so let’s go ahead and flatten that out and let’s just get out of that for a second and let’s do it again all right so here’s our 25 cent let’s make this 50 cents like we did earlier 500 shares all right now i’m going to go ahead and let’s say 78 15 again click this here it’s good we’re getting a second repetition i’ll click edit and then you can see right here we’ve got our stop loss on our target and then for market i’m going to go to stop limit just like we did before now from 78 15 i’m going to say 78 10 now so between 78 10 and 78 15 i’m willing to accept a fill so let’s go ahead and put that in all right so now what you can see is it’s all set up right here for you you’ve got your stop loss and your target but they aren’t active yet because you haven’t been triggered your trigger is going to happen when you hit you can see right on that bar 7810 with the limit of what you’re willing to accept at 78.

15 so let’s see if this gets 09:06 - filled and we’ll go from there if it doesn’t we can edit it and i’ll show you how let’s say i tell you what let’s do if you want to change it cancel replace i’m going to move it down to 8 and we’ll do we’ll leave it at 15. so between 8 and 15 i’m willing to accept it oh and it keeps dropping so let’s drop it down to 5. 5 and 10. all right there we go so we just got executed so it got triggered because price hit our stop and if we go to messages we can see where the fill was so we said we’d be happy to be filled between 7805 and 7810 and look at that it filled us at 78.06 okay so we got one penny of slippage but the beautiful thing is we said we’re okay with that slippage we don’t mind if we get that couple pennies because that’s acceptable a little bit of slippage was worth it to us in order to get entered into the trade now what you have out here after having that stop limit order activated activate us is we have our target and our stop loss so you could literally walk away from this and be fine and the reason for that is because the stop is a market order any price action below this level will trigger me out of the trade and this one up here this is going to be a limit order to sell so i will get executed at that penny at that level so that is how you set up the stop limit order now let’s do this let’s take the same thing but let’s go short let’s say i want to get short at 77.98 click edit and here is our stop loss there’s our target change this to stop limit now our stop is 77.

98 but remember we’re going 11:09 - short so the limit has to be below our stop so instead of going up in price we’re gonna go down so this order here says i’ll accept anything between 77.98 down to 77.90 for a fill okay and i can actually let’s go up to 7801 down to 78.90 let’s confirm and send that out we’ll see if we get filled on that but that’s the same thing as a long order it’s just flipped and it’s a short order you’re just going in the other direction and the one thing that you’ll notice on this is the color of this tag is red indicating that’s a short in the other scenario if you’re if you rewind the video a little bit you’ll see that this tag here was green so this is red these are green and then the opposite is true in the other example so if you’re going to go long your limit order has to be higher than your stop if you’re going short your limit order has to be lower in price than your stop and that should keep you safe limit your slippage and ensure that you don’t get skipped because you can control the window of opportunity if you have questions drop them below i hope this was helpful glad to see you stop by if you’re new subscribe if you liked the video you learned something hit that thumbs up i’d love it and if you didn’t know anything about stop limit orders but you learned something today drop down in the comments and tell me about it if you know about stop limit orders and you feel like you have additional information to add or you feel like i forgot something throw that in the comments as well i’d love to see it alright see you next time [Music] you .