So what is a trailing stop order in the thinkorswim platform in this video I'm
gonna walk you through the most effective way to set up and use the
trailing stop order in thing : hey how's it going
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down there now today we're talking about the filter swim platform and trailing
stops so the whole idea with the trailing stop order is so you don't have
to do that manually yourself now I'm just gonna come in here on the simulated
trading platform and buy a hundred shares of Apple for this demonstration
so I'm just gonna get long a hundred shares of Apple and then there are a few
ways to set up a trailing stop loss order now the first way you can do is
you can come in here to the monitor tab and look at your positions now you can
look at your positions in here and then create a closing order for Apple and
then coming here and say sell with stop and that'll be how you want to set that
up so then you can come in here and change this to a trailing stop there
isn't an easy tab for a trailing stop so you just have to come in here and change
the order type and then you can set up your trailing stop for however far you
want it so maybe with Apple you want you know 50 cent trailing stop or $1
depending on out you are trading so you can come in here and say we want $1
trailing stop and because it's a sell order we actually want to have this
number be a negative number so it's a dollar below the current price and then
we'll just click here confirm and send and send that order in and then we go
over here to the chart and we can see that trailing stop order down here
now another way to do this is actually just while you can look at the chart I
can come on here and click the price up here and then click sell because we want
to sell and then this will bring up a sell order down here and then I can just
come in here and click the trailing stop order and then shift that to a dollar as
well and that will allow you to watch the price action on the chart so you
don't have to be going back and forth trying to figure out how much of a
trailing stop you want to put so I'll put a dollar in here you can go with
mark for the link and the order type that generally the default settings are
really fine and then you just want to click confirm and send and then it'll
calculate and it'll put that trailing stop down where you want so this is
pretty good trailing stop right now because it looks like you know maybe
this is where some support might be and then as the market moves up the trailing
stop will move up with the market so just to kind of zoom in or zoom forwards
in time to kind of show you what that will look like as the stock moves up
like this the trailing stop here will start moving up as well so hopefully
once it gets high enough the market will move up here and then eventually come
down once it comes down it'll hit your trailing stop and that will protect your
profits and your potential gains that you had so you can see that the trailing
stop moved up a tiny bit with the market and so this is essentially just how you
set up a trailing stop to quickly do that again for you we can just come in
here and minus this we just go up here to the price click sell because we are
selling our position and then again the trailing stop also you can see there's a
trailing stop limit and so I can actually come in here and make a
trailing stop limit which is basically a trailing stop but you tell what price
you want to then sell it at so once eight your trailing stop and
just selling out and selling at the market you can sell at a certain price
so we can say that okay if it comes down $0.50 we want to sell at this level down
here so like 220 and a half so I can come in here and set that price for 220
point and a half and that is where that stop will then actually sell once it
hits that price so again you'll have that trailing stop there and it will
move with the market now a quick way to go in and edit this is I can just come
in here and right click on the actual order that you can see on your screen
and you can either cancel copy and then you can click replace order as well and
I can change that to a trailing stop again and then maybe put it back to that
$0.50 that we want or a dollar and then confirming and sending and that'll
hopefully update the trailing stop and it will as you can see it moves up with
the market so as is moving up with the market here as the market moves up
that'll allow us to protect our profits as this trailing stop moves up with the
market and then we can either close out our position if maybe the market gets to
a certain point or we can just let this Tran stop run indefinitely and the stock
will close out once it eventually hits that trailing stop one thing you want to
do if you do want the trailing stop to work overnight this trailer stop we have
right now will close at the end of the day so if you want to do that you're
going to want to come in here and click replace order and just tell over here
you want to change this a day till GTC and that just means good till cancelled
and so that will just run until it either gets filled or until these stock
it's your trailing stop and that order gets filled so again we'll that'll
replace and then I'll calculate and that is just another way for you to use
trailing stops over longer term timeframes hey thanks for checking this
video if you want to learn more the thinkorswim platform make sure to
check out my other thinkorswim tutorials if you wanted us to learn more about the
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