Revealing My Complete Day Trading Setup on Thinkorswim (Charles Schwab)

Introduction

In this article, I'm excited to share my comprehensive day trading setup using Thinkorswim with Charles Schwab. As a trader, simplicity and focus are key to my success. I prefer a streamlined setup with large, easy-to-read charts and minimal distractions. This setup allows me to execute trades efficiently and stay focused on a single stock at a time.

Main Monitor Overview

My main monitor setup is dedicated to placing trades and analyzing a single stock. It features one large chart with essential studies configured, including:

VWAP (Volume Weighted Average Price)
9 EMA (Exponential Moving Average)
20 EMA
Previous Candle High and Low

I also utilize Thinkorswim's script editor to import custom scripts like the previous candle high/low indicator, which helps me quickly identify key levels on various time frames. This setup ensures I can focus on precise entries and exits without multi-tasking on multiple stocks.

Studies and Indicators

The studies configured on my main chart are crucial for my trading strategy. Here’s how each is set up:

9 EMA & 20 EMA: Both have displace set to 0, lengths of 9 and 20 respectively, and customized colors for easy distinction.
VWAP: Shows the daily volume weighted average price without standard deviation lines.
Previous Candle Script: Displays the high and low of the previous candle for all time frames, aiding in rapid analysis.

Depth of Market and Order Execution

On the right side of my main monitor, I use Dash Trader for my Level 2 display, tape reading, and order execution. Dash Trader offers smoother and real-time data compared to Thinkorswim, which enhances my trading edge slightly. However, profitability is still achievable solely with Thinkorswim.

Backup and Failsafes

I keep Thinkorswim's active trader ladder minimized with only the flatten button visible. This serves as a fail-safe for quickly exiting positions in case of Dash Trader failures. I also monitor current positions on both Dash Trader and Thinkorswim to ensure accuracy and avoid unintentional overnight holdings.

Secondary Monitors

I use two additional monitors:

Right Monitor: Displays a watch list of leading gappers populated from my pre-market and market open scanners. This helps me keep track of potential trades throughout the day.
Left Monitor: Shows my current account positions, additional time frames (5-minute and daily charts), and live news updates. This monitor is linked to my main trading chart to automatically update with any stock changes.

Scanner Setup

I rely on Thinkorswim’s built-in scanner, configured for both market open and pre-market conditions:

Market Open Scanner: Filters for stocks with over 1 million in volume, shares outstanding between 0 and 150 million, and prices between $ 0.50 and $ 50.
Pre-Market Scanner: Similar filters but includes an after-hours percent change greater than 10% to catch significant overnight movements.

Conclusion

This streamlined day trading setup centered around Thinkorswim and enhanced by Dash Trader meets all my needs for efficient and effective trading. By focusing on simplicity and precision, I can make informed trades without unnecessary distractions.

Keywords

Day Trading
Thinkorswim
Charles Schwab
VWAP
9 EMA
20 EMA
Previous Candle High/Low
Dash Trader
Level 2 Data
Pre-market Scanner
Market Open Scanner
Flatten Button

Keyword

Day Trading
Thinkorswim
Charles Schwab
VWAP
9 EMA
20 EMA
Previous Candle High/Low
Dash Trader
Level 2 Data
Pre-market Scanner
Market Open Scanner
Flatten Button

FAQ

Q1: Why do you prefer using a single chart on your main monitor? A: I prefer using a single chart on my main monitor to minimize distractions and maintain focus. It helps me concentrate on precise entries and exits without being overwhelmed by multiple stocks.

Q2: What studies do you use on your main chart? A: My main chart includes VWAP, 9 EMA, 20 EMA, and a custom script to display the previous candle high and low. These indicators are crucial for my trading strategy.

Q3: Why do you use Dash Trader for Level 2 and tape reading? A: Dash Trader offers smoother and more real-time data compared to Thinkorswim. This can enhance my trading edge slightly, though it's not essential for profitability.

Q4: How do you manage potential technical failures with Dash Trader? A: I keep Thinkorswim’s active trader ladder with the flatten button visible as a fail-safe. This allows me to quickly exit positions in case Dash Trader encounters issues.

Q5: How do you set up your market open scanner? A: My market open scanner filters for stocks with a volume over 1 million, shares outstanding between 0 to 150 million, and prices between $ 0.50 and $ 50.

Q6: What do you use your secondary monitors for? A: The right monitor displays my watch list, while the left monitor shows current account positions, additional time frames, and live news updates. These monitors complement my main trading setup.