A Step-by-step Guide to Setting up Day Orders on Popular Trading Platforms

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Day orders are a popular trading tool used by investors to buy or sell securities within the same trading day. Setting up day orders correctly can help traders capitalize on short-term market movements. This guide walks you through the process of setting up day orders on some of the most popular trading platforms.

Understanding Day Orders

A day order is an order to buy or sell a security that expires if it is not executed by the end of the trading day. If the order is not filled, it automatically cancels. This is useful for traders who want to avoid holding positions overnight and reduce exposure to after-hours market risks.

1. TD Ameritrade / Thinkorswim

To place a day order on Thinkorswim:

  • Log in to your Thinkorswim account.
  • Enter the ticker symbol of the security you want to trade.
  • Choose the order type (e.g., Limit, Market).
  • Set your desired price and quantity.
  • In the order expiration options, select Day.
  • Review your order and click Send.

2. E*TRADE

On E*TRADE’s platform:

  • Log into your account and navigate to the trading page.
  • Enter the stock symbol and select Trade.
  • Choose your order type and enter your parameters.
  • Find the expiration options and select Day.
  • Confirm the details and submit your order.

3. Robinhood

Robinhood simplifies the process:

  • Open the Robinhood app and select the security you want to trade.
  • Tap Trade and choose Buy or Sell.
  • Set your order details, including price and quantity.
  • Ensure the order type is set to Market or Limit.
  • Check that the order expiration is set to Good for the day.
  • Review and submit your order.

Tips for Successful Day Trading

When setting up day orders, keep these tips in mind:

  • Always double-check the expiration setting to ensure your order is valid only for the trading day.
  • Use limit orders to control the price at which you buy or sell.
  • Monitor market conditions and news that could affect your trades.
  • Set stop-loss and take-profit levels to manage risk effectively.

By following these steps and tips, you can effectively utilize day orders to enhance your trading strategy on popular platforms. Happy trading!