How To Use and Setup Thinkorswim for Beginners

Watch the full video here: 3 MUST ENABLE ThinkorSwim Settings for Day Trading ???? DAY 7 | Small Account Challenge

If you’re new to thinkorswim and want to set it up for active trading, this guide is for you. This platform has powerful tools, but if you don’t configure it properly, you’re leaving money on the table.

Right now, I’m in the middle of a small account challenge, growing my thinkorswim account as quickly as possible. In this article, I’ll share the settings that have helped me maximize my execution speed.

How To Get Started With Thinkorswim

Correctly setting up the platform is crucial. Thinkorswim, developed by TD Ameritrade, is one of the most powerful trading platforms for active traders, but it can initially feel overwhelming.

The platform offers real-time charting, Level 2 data, customizable layouts, and advanced trading tools. But before you can use them effectively, you need to install, log in, and familiarize yourself with the interface.

Below, I’ll walk you through the steps to get thinkorswim up and running. That way, you can start trading with confidence.

Downloading and Installing Thinkorswim

First things first, you need to download and install thinkorswim on your preferred device:

• Go to the thinkorswim website and sign up for an account (if you don’t have one already).
• Download thinkorswim for Windows, Mac, or mobile — the desktop version is best for active traders.
• Install and login with your TD Ameritrade credentials.

I always recommend using the desktop version of thinkorswim, as it offers the best performance and full access to all trading tools.

Navigating the Thinkorswim Interface

Once you’re logged in, you’ll see thinkorswim’s dashboard. It might initially look complicated, but the key to mastering it is understanding the most important sections:

• Trade Tab & Active Trader: This is where you execute trades.
• Charting Tools: These help you analyze price action and set up indicators like VWAP and MACD.
• Level 2 Market Data: This displays bid/ask levels to track liquidity and order flow.
• Scan Tab: This tab helps you find stocks that match your trading strategy.
• Monitor Tab: Finally, the Monitor tab shows your open trades, P&L, and order history.

Customize your layout by resizing, adding, or removing panels so you only see what’s important. The way I use thinkorswim is by setting up my layout to make trading faster and easier.

Setting Up Your Workspace for Faster Trading

Before placing your first trade, I recommend customizing your workspace to fit your trading style.

For instance:

• Rearrange your windows for quick access to Active Trader, Level 2, and other charts.
• Set up watchlists to track stocks you’re interested in.
• Enable hotkeys for faster order execution (more on that later).

Thinkorswim has endless customization options, but the goal is to keep it simple and efficient so you can focus on trading, not searching for buttons.

What Are the 3 Must-Enable Settings for Active Trading?

If you’re serious about day trading, you should enable three specific settings on thinkorswim. These settings can speed up trade execution, reduce delays, and improve accuracy, making it easier to catch quick-moving stocks.

Thinkorswim’s default settings aren’t optimized for active traders, which means you’re probably missing out on better fills and faster orders. Below, I’ll walk you through the changes I make and why they matter.

1. Active Trader Order Submission Rate (Set to Zero)

Thinkorswim throttles order speed by default, which can slow down execution. That’s something no day trader wants. By setting the submission rate to zero, I ensure my orders execute instantly when I double-click the buy or sell buttons.

Why It Matters

• Allows for faster order placement.
• Prevents delays in execution.
• Helps avoid missing quick trades.

How To Enable It

• Click on the Setup widget (top-right corner).
• Navigate to General > Active Trader.
• Locate the Active Trader Order Submission Rate and set it to zero.

Settings menu for configuring order defaults, including submission rate and hotkey functionality for quicker trading actions.

2. Real-Time Quote Speed

If your quote speed isn’t set to real-time, you could be trading on delayed prices without realizing it. By default, thinkorswim may set your quote speed to “Fast” or “Moderate,” which isn’t good enough for day trading.

Why It Matters

• Ensures you see price movements as they happen.
• Helps avoid slippage and unexpected fills.
• Keeps your entries and exits accurate.

How To Enable It

• Open System Settings.
• Locate Quote Speed.
• Change it to Real-Time With No Delay.

Adjustment settings for real-time quote speed to ensure immediate data reception and trade execution.

3. Turn Off Pop-Up Messages and Notifications

Thinkorswim has built-in pop-up notifications that block your buy/sell buttons at the worst possible moment. If you’re in a fast-moving trade, a simple message delay could cost you money. That’s why I turn them off completely.

Why It Matters

• Prevents trade-blocking pop-ups.
• Keep your buy/sell buttons always visible.
• Eliminates unnecessary distractions.

How To Disable It

• Go to Display Settings > Show Messages.
• Change Default Display Time from 10 seconds to Do Not Show.

Display Settings menu in Thinkorswim, showing how to disable pop-up notifications by setting the message display time to ‘Do not show’ to prevent interruptions during trading.

You can dramatically improve your thinkorswim trading experience by enabling these three settings. These tweaks make a huge difference in speed, accuracy, and overall execution, ensuring you never miss a great opportunity.

How To Set Up Hotkeys for Quick Trading

One of the biggest time-wasters in trading is manually adjusting trade sizes and orders. That’s why I rely on hotkeys to place trades quickly.

To enable them, go to Hotkey Settings and click “Enable Active Trader Hotkeys.”

What Are the Recommended Hotkeys for Quick Trading?

Here’s how I have my thinkorswim hotkeys set up:

• Shift + 1: Buy Ask
• Shift + 2: Buy Market
• Control + Z: Sell Bid
• Alt + Z: Sell Market
• Control + Q: Cancel All Open Orders

This way, I can quickly enter and exit trades with a few key presses, keeping my hands on my keyboard rather than switching to the mouse.

What Are the Best Practices for Charting Setups?

Here are some additional customization options for fast trading on thinkorswim:

Active Trader Layout

Position your Active Trader window on the side of your screen to execute trades more quickly without switching between tabs.

Price Ladder

When using Price Ladder, be sure to place limit orders by clicking on the price level where you want to buy. You can also pre-set the number of shares per trade by adjusting the order templates.

Charting Tools for Market Analysis

Finally, make sure you choose the right time frames when performing market analysis. Personally, I use one-minute, five-minute, and daily charts. Also, don’t forget about VWAP, MACD, and moving averages to see better trade signals.

I look for stocks with strong momentum, using volume spikes and breakout levels for entries. By customizing your thinkorswim layout and leveraging these charting tools, you can ensure faster execution and more accurate decisions.

How To Use Level 2 for Better Execution

Level 2 data is essential for seeing real-time bids and asking orders. It helps you gauge market liquidity and spot large buyers and sellers.

Watch bid-ask spreads to avoid getting a bad fill and identify big orders that could signal momentum shifts. Before entering a trade, I always check these two to avoid getting caught in a bad entry.

Level 2 Market Data tool in Thinkorswim, demonstrating how to monitor bid and ask sizes for better trade execution and to identify market liquidity and potential momentum shifts in real-time.

What Are Common Mistakes Beginners Make?

New traders often make mistakes that lead to missed opportunities. Here are just a few:

• Not Using Real-Time Quotes: Trading on delayed prices can cause slippage and bad fills. Set quote speed to real-time to stay accurate.
• Forgetting To Change Order Quantity: Placing too large or too small of orders can throw off your strategy. Double-check trade size before executing.
• Not Setting Hotkeys: Manually placing trades is too slow in a fast market. Enable hotkeys to execute orders instantly.
• Ignoring Market Depth: Focusing only on price without checking Level 2 data can lead to illiquid trades. Watch for big buyers and sellers.

The key to trading is preparation — set up your platform properly so you can focus on execution. By optimizing your thinkorswim setup, you can trade faster and more confidently.

Closing Thoughts

Thinkorswim isn’t just about convenience. Rather, it can be your secret weapon to faster execution, better fills, and more profitable trades.

The difference between winning and losing a trade often comes down to seconds, and if you’re serious about trading, you need every possible advantage. Your trading platform is your workspace — the better it’s set up, the faster and more accurate you will be.

If you want to sharpen your skills even more, sign up for Warrior Trading and take your trading to the next level. The right tools, the right strategy, and the right preparation can make all the difference.