thinkorswim vs. tastytrade (Formerly tastyworks) Comparison

tastytrade vs thinkorswim

I have used thinkorswim and tastytrade personally, and they are both great platforms for both active traders and long-term investors. tastytrade offers lower commissions for futures trading, but lacks in charting features compared to thinkorswim. Another difference is thinkorswim is owned by Schwab, giving you access to banking and other additional features tastytrade does not offer. tastytrade also offers crypto trading, while thinkorswim and Schwab do not.

Full disclousure, the links to tastytrade in this article are my referral link, and will give you a sign-up bonus. I may also receive a referral bonus at no extra cost to you.

Overview of thinkorswim

thinkorswim is a trading platform that is currently available for Charles Schwab and TD Ameritrade account holders. thinkorswim offers one of the best platforms for active traders thanks to its advanced charting features, active trader, and customizability make it an excellent platform for active day traders and long-term investors alike. 

tastytrade and thinkorswim were both founded by Tom Sosnoff. TD Ameritrade bought the thinkorswim platform in 2009 for $750m, and IG bought tastytrade in 2021 for $1b.

Overview of tastytrade

tastytrade (formerly tastyworks) is a brokerage platform owned by IG. It was designed to specialize in options trading and has the tastylive education network streaming live on the platform every day. tastytrade is an excellent platform for active traders, providing competitive futures and options pricing, an active trader tab, and live education. 


tastytrade vs thinkorswim

Pros and Cons

thinkorswim Pros

– Advanced charting and analytical tools catering to traders of all levels.

– Wide range of investable assets, including stocks, options, futures, and more.

– Highly customizable interface and trading environment.

thinkorswim Cons

– The platform’s extensive features might overwhelm new traders.

– Requires a TD Ameritrade account, which might be a barrier for some international traders.

tastytrade Pros

– Specializes in options trading with comprehensive tools and resources

– Offers the tastylive network for daily live trading education and insights.

– Competitive pricing structure for active traders.

tastytrade Cons

– May have a steeper learning curve for beginners not focused on options.

– Limited in terms of asset variety compared to more comprehensive platforms.


Options Trading on thinkorswim and tastytrade

thinkorswim and tastytrade are both excellent platforms for options traders. Both provide options chains with tons of customizability, allowing you to view the option data that matters to you whether it is delta, volume, or open interest. Both platforms also offer competitive pricing options and futures options.

thinkorswim vs. tastytrade Pricing

Featurethinkorswim Pricingtastytrade Pricing
Option Commissions$0.65 per contract$1 to open, free to close ($.07 fee per contract)
Futures Commissions$2.25 (+$1.40 fee) per contract$1.25 (+$0.30 fee) per contract
Futures Options Commission$2.25 (+$0.57 fee) per contract$2.50 to open (+$0.30 fee per contract), free to close
Micro Futures$2.25 (+$0.37 fee) per contract$0.85 (+$0.30 fee) per contract
Micro Futures Options$2.25 (+$0.22 fee) per contract$1.50 to open (+$0.30 fee per contract), free to close

The main difference is that thinkorswim is more cost-effective if you plan to let your option contracts expire since tastytrade frontloads the pricing when you open. 

Technical Analysis and Charting

thinkorswim takes the lead in technical analysis and charting, offering a more extensive array of tools and indicators than tastytrade. Its platform is designed to accommodate the needs of technical traders with customizable charts, a wide range of technical indicators, and drawing tools.

tastytrade does provide some solid charting tools, but it lacks advanced indicators like the volume profile and level II data.

Mobile Apps

tastytrade and thinkorswim offer solid mobile apps, but overall the tastytrade app provides a better user experience. The thinkorswim app seems a bit dated and overly complex, while the tastytrade app is more modern and provides a less clunky interface.

Fundamental Analysis Data & News

tastytrade and thinkorswim provide financial data and news directly in the platform, but thinkorswim is overall better when it comes to finding news articles per ticker and accurate fundamental data. 

thinkorswim provides real-time fundamental data like market cap and shares outstanding. tastytrade also offers similar features, but it is newer and seems not to be as consistent. 

thinkorswim has an excellent news widget where you can type a ticker and view relevant news stories for any company. tastytrade has some news available on its dashboard, but it doesn’t offer company-specific news. 

Data & Trading Execution

thinkorswim offers level II data, while tastytrade does not, giving thinkorswim the edge when it comes to advanced data availability. However, both platforms offer real-time data for free with a funded account. 

Both platforms also offer an active trader tab, allowing you to get in and out of trades quickly. 

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Option Omega Review: The Best Automated Options Backtesting Software

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Option Omega is automated options backtesting software that can produce backtests dating back to 2013 in minutes. 

The software also uses one-minute data, which is crucial, especially when dealing with 0 and 1-DTE options backtests. 

Key Features of Option Omega

  • 1-minute historical data, ensuring accurate results
  • Build portfolios by combining multiple strategies in the same backtest
  • Backtest SPY, SPX, QQQ, IWM, and TSLA
  • Test back to 1/1/2013 – yesterday

The software is normally $99 per month or $599 annually. However, with my affiliate link, you can get Option Omega for just $50 per month

Creating a Backtest Example

Once you sign in, you will see tests and portfolios at the top left. 

option omega tests and portfolios

To begin your first backtest:

1- Click tests

2- Click the new backtest button

option omega new backtest button

3- Begin setting your parameters

4- Be careful not to click off to avoid disrupting your parameters

Setting up Test Parameters

The parameters are incredibly customizable, and I highly recommend you test multi-leg strategies like iron condors and put credit spreads one leg at a time, then combine them in a portfolio. This isn’t necessary, but it can be more efficient and customizable. 

option omega test parameters

You can customize the following in your backtest:

1- Start date: 1/1/2013 is the earliest start.

2- End date: Test as recent as the previous trading day.

3- Ticker: SPX, SPY, QQQ, IWM, TSLA

4- Strategy (optional): Choose a preloaded strategy like iron condor or iron fly

5- Add leg: Customize the entry parameters for each leg, including:

  • Sell or Buy
  • Put or Call
  • Quantity
  • Delta
  • DTE

SPX/SPY 1DTE Backtest Example

In our example, we will test a 1-DTE short-put strategy on the SPX and SPY. To account for the weekend when the market is closed, we will have to run a separate 3DTE test for Friday’s “1-DTE” trades.  

So, in Option Omega, I simply select the start date as 1/1/2013 and the end date of yesterday. Next, I choose SPX, then add a leg. The leg will be:

  • Sell
  • Put
  • 1 QTY
  • 15 Delta
  • 1 DTE (Separate 3DTE Friday only test)
  • Daily frequency 15 minutes before close (Weekly, then click for Friday 3DTE)
  • -600% stop loss
option omega stop loss
  • Early exit at one minute before close
option omega early exit
  • 1 max contract per trade
  • Ignore margin requirements
option omega example backtest parameters

I will check “use exact DTE” to ensure it only does the 1DTE trades. For starting funds, I usually go with a high number, like $10,000,000, for the most flexibility. 

I will use 1 contract per day to remain consistent, and later in Google Sheets, we will be able to adjust the number of contracts sold based on account size. You can do this by exporting the backtest data from Option Omega. You can view my Google Sheet for this SPY/SPX 1DTE backtest and make a copy if you’d like to use the template for your own Option Omega exports. 

You can customize the commissions and fees to your own broker, plus you can control the leverage based on notional value. For example, selling one SPY 400 strike put is $40,000 of notional value. Changing the leverage to the spreadsheet to 1 will sell 1 contract for every $40,000 of net liquidity. You can also change the account net liq size. 

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Google Sheet With Exported Option Omega Backtest Results

My sheet will calculate the following for you based on your Option Omega export results:

  • PCR (premium capture rate): Total profit / Total premium sold
  • Win rate %
  • Total return
  • CAGR: Compound annual growth rate
  • Max drawdown
  • Mar ratio
  • Sharpe ratio
  • Max % stop loss hit
  • Max one contract loss
  • Max daily % drawdown

Combining the Tests in Portfolios

Since I ran two backtests in this case (1 & 3DTE for Friday entries), to combine them into a single test, we can use the portfolios feature. Simply click portfolios at the top left, and then click New Portfolio.

You will be able to customize the starting funds and the start and end dates for the portfolio test. Next, I will check the two backtests I want to combine, then click run. 

This will combine the 1 and 3DTE tests together in a single test. Next, you can click “Trade Log” and then use the export to CSV option if you want to analyze the data in Google Sheets. The Benefit of using Google Sheets is you can easily change commissions and leverage based on net liquidity, which you can do in my Google Sheets template

Key Features of Option Omega

Option Omega stands out in the options backtesting world because it combines automated backtesting with 1-minute historical data. Prior to this software, you’d have to manually backtest with software like OptionNet Explorer for this level of accuracy. 

The ability to run hundreds of 10+ year backtests in minutes is amazing and allows retail traders to build conviction in their options trading. There are tons of ways to modify the test to suit your style, and it is easy to spend hours on Option Omega tweaking your backtests. 

Pricing and Accessibility

Option Omega is accessible to everybody, as you do not have to install any software. It is normally $99 per month, but our readers can get 50% off using our Option Omega affiliate link

Option Omega – Bottom Line

Option Omega is an excellent resource for options traders looking to build conviction in their strategies. Option Omega is definitely worth a shot if you want automated backtesting software with accurate 1-minute historical data.

Disclaimer: Financial Tech Wiz is an affiliate of Option Omega and may receive a commission if you sign up using our affiliate link.

TrendSpider vs. TradingView | Which is Best For You? (2024)

tradingviewvstrendspider

If you are looking for a powerful and reliable platform to analyze and trade the financial markets, you might have come across TradingView and TrendSpider.

In this article, we will compare TradingView and TrendSpider based on their main features, benefits, drawbacks, and pricing. By the end of this article, you will have a clear idea of which platform suits your needs and preferences better.

tradingviewvstrendspider

Overview of TradingView

TradingView is one of the most widely used platforms for charting, screening, and trading the financial markets. It supports a wide range of markets and data sources, including international stocks, bonds, forex, crypto, and futures.

You can access TradingView from any web browser or mobile device, as well as integrate it with popular brokers such as Oanda, Interactive Brokers, TradeStation, and more.

Some of the main features and benefits of TradingView are:

  • A powerful and user-friendly screener that allows you to filter by technical and fundamental criteria, such as price, volume, indicators, earnings, dividends, ratings, and more.
  • A large library of indicators and drawing tools, as well as the ability to create custom indicators using Pine Script, a proprietary coding language that is easy to learn and use.
  • A direct broker integration that enables you to trade from the platform without switching to another application or website. You can also use paper trading to practice your strategies without risking real money.
  • A social network that enables you to share your ideas, learn from experts, and access live streams and trade signals. You can also join chat rooms, follow other traders, comment on charts, and participate in contests.

If you want to try TradingView risk-free, you can sign up for a TradingView free trial to test out all of the premium features at no cost! When you use my affiliate link to register, you will also get a discount on your subscription.

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Overview of TrendSpider

TrendSpider is a great alternative to TradingView for those who want a more advanced platform with automated technical analysis tools and more charts per layout.

TrendSpider is a relatively new platform that aims to automate technical analysis and make it easier and faster for traders. It uses artificial intelligence and machine learning to draw trendlines, chart patterns, Fibonacci retracements, candlestick patterns, and more. It also allows you to create custom strategies and backtest them with historical data.

Some of the main features and benefits of TrendSpider are:

  • An advanced automated chart pattern recognition that draws trendlines, chart patterns, Fibonacci retracements, candlestick patterns, and more. You can also adjust the sensitivity and accuracy of the automation according to your preferences.
  • A no-code custom strategy builder and backtester that allows you to test different scenarios and optimize your trading performance. You can use predefined templates or create your own based on custom parameters.
  • A comprehensive technical screener that incorporates pattern recognition and multiple timeframes. You can scan for stocks that match your criteria across different timeframes simultaneously.
  • An alternative data integration that provides insights from social media sentiment, analyst estimates, dark pool volume, short volume, and more. You can use these data sources to complement your technical analysis and find hidden opportunities.
  • Proprietary raindrop charts

If you want to try TrendSpider out for free, you can sign up for a TrendSpider free trial, using my affiliate link!

trendspider banner

Factors to Consider Between TradingView & TrendSpider

Both TradingView and TrendSpider offer excellent features and benefits for traders of all levels and styles. However, there are some differences between them that you should consider before choosing one over the other. Here is a table comparing some key features of TradingView and TrendSpider:

Indicator Selection

Both TradingView and TrendSpider offer plenty of indicators for technical analysis. However, there are some differences in their indicator selection that might affect your trading style.

TradingView Indicator Selection

TradingView offers session volume profiles, which show the distribution of volume within a specific day. This is great for day traders who enjoy using volume or market profile.

svp

TradingView also has a large community of people creating custom indicators using Pine Script, which is a proprietary coding language that is easy to learn and use. You can find thousands of custom indicators on TradingView’s public library or create your own based on your needs and preferences.

TrendSpider Indicator Selection

TrendSpider only offers volume by price, which shows the distribution of volume across different price levels over several days. The volume by price can be anchored from anywhere on the chart, so technically, you can anchor it at the start of the day to simulate a session volume profile.

TrendSpider does not have a similar community custom indicator feature, but its team is a lot more responsive and knowledgeable about trading, reducing the need for the community aspect.

Backtesting

Backtesting is the process of testing your trading strategies with historical data to evaluate their performance and profitability. Both TradingView and TrendSpider allow you to create and backtest your own trading strategies with custom parameters.

TradingView Backtesting

TradingView allows you to manually backtest your strategies by applying them to the chart and seeing how they would have performed in the past.

You can also write your own trading strategies using Pine Script, which gives you more flexibility and control over your logic and rules.

You can then use TradingView’s strategy tester to analyze the results of your backtesting, such as net profit, drawdown, win rate, and more.

TrendSpider Backtesting

TrendSpider allows you to create your own trading strategies without coding using its no-code custom strategy builder. You can use predefined templates or create your own based on custom parameters, such as indicators, patterns, timeframes, and more.

You can then use TrendSpider’s automated backtester to test your strategies with historical data and see how they would have performed in the past. The backtester allows you to compare different strategies and optimize them based on various metrics, such as net profit, drawdown, win rate, and more.

Multiple Chart Abilities

TrendSpider allows you to view up to 16 charts per layout, which is more than TradingView’s non-professional plans, which only offer up to 8 charts per layout.

This can give you more flexibility and convenience when analyzing multiple markets or timeframes at once. However, if you need more than 8 charts per layout on TradingView, you can upgrade to a professional plan that offers up to 16 charts per layout.

Another difference is that TrendSpider allows you to sync your charts across different timeframes, which means that when you change the timeframe on one chart, it will automatically change on all the other charts in the same layout.

trendspidermultiplecharts
Trendspider 16 Charts in a Layout

This can help you keep your analysis consistent and save time when switching between timeframes. TradingView does not have this feature, but you can use its split-screen mode to view different timeframes side by side.

You can read this article to learn more about using TradingView multiple charts.

Stock Screeners

Both TradingView and TrendSpider offer excellent stock screeners that allow you to filter stocks based on various criteria. However, there are some differences in their stock screeners that might affect your trading results.

TradingView Screeners

TradingView offers a technical and fundamental screener that allows you to filter stocks by technical and fundamental criteria, such as price, volume, indicators, earnings, dividends, ratings, and more.

You can also use TradingView’s social network integration to find stocks that are popular or trending among other traders. You can access live streams, trade signals, chat rooms, and more from TradingView’s social network.

TrendSpider Screeners

TrendSpider offers a technical screener that incorporates pattern recognition and alternative data integration. You can filter stocks by technical criteria, such as indicators, patterns, timeframes, and more.

You can also use TrendSpider’s pattern recognition feature to find stocks that match specific chart patterns or candlestick patterns across multiple timeframes. Additionally, you can use TrendSpider’s alternative data integration to find stocks that have unusual options volume, high social media sentiment, positive analyst estimates, high dark pool volume, high short volume, and more.

Mobile App

Both TradingView and TrendSpider have solid mobile apps that make charting on the go relatively easy. However, the web platforms are, of course, much better in terms of functionality and features.

TradingView Mobile App

TradingView’s mobile app is available for iOS and Android devices. It allows you to access most of the features of the web platform, such as charts, indicators, drawing tools, and more. However, some features are not available on the mobile app, such as Pine Script editor, strategy tester, split screen mode, and more.

TrendSpider Mobile App

TrendSpider’s mobile app is only available for iOS devices. It allows you to access most of the features of the web platform, such as charts, indicators, drawing tools, screeners, pattern recognition, and more. However, some features are not available on the mobile app, such as strategy builder, backtesting, alternative data integration, and more.

Pricing

TrendSpider is slightly more expensive than TradingView, but it also comes with more features and real-time data at no additional cost. TradingView charges for real-time data on top of the subscription charge, although many popular ETFs like SPY are just barely 1 second delayed without paying on TradingView.

TradingView’s pricing starts from $14.95/month for the basic plan and goes to $59.95/month for the highest tier subscription.

However, these prices do not include real-time data for most markets. You have to pay extra charges for real-time data depending on the market you want to access.

TrendSpider’s pricing starts from $39/month for the standard plan and goes up to $179 per month for the highest tier

trendspiderpricing
Get a TrendSpider Free Trial

These prices include real-time data for most markets except futures. You have to pay extra charges for futures data depending on the exchange you want to access.

TradingView vs. TrendSpider | Bottom Line

TradingView and TrendSpider are both excellent platforms for charting, screening, and trading the financial markets. However, they have some differences that might make one more suitable for you than the other.

Ultimately, the choice between TradingView and TrendSpider depends on your personal preferences and trading goals. You can try both platforms for free for a limited time and see which one works better for you. Alternatively, you can use both platforms together to get the best of both worlds.

Check out my article about getting a TrendSpider free trial and a TradingView free trial for more information about signing up.

If you have made it this far, learn how to use our TrendSpider coupon code to get a discount on your subscription!

This article contains affiliate links for both TrendSpider and TradingView that I may be compensated for if you click and purchase a subscription from either. These affiliate links will provide you with a discount and support this website at no additional cost to you.

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TrendSpider Raindrop Charts – How to Read Raindrop Charts

trendspider raindrop

Among TrendSpider’s innovative offerings, Raindrop Charts stand out as a revolutionary way to visualize price and volume data.

These charts offer a more advanced perspective compared to traditional charting methods by effectively blending the volume profile with candlesticks.

trendspider raindrop

Understanding Raindrop Charts

Unlike conventional candlestick charts, which focus on open, high, low, and close prices, Raindrop Charts incorporate volume into their visual representation.

Raindrop charts allow you to view advanced data like the VWAP and volume by price in a simpler way. Generally, the raindrop charts are best used on the daily timeframe.

How to Read Raindrop Charts

The raindrop consists of a few different aspects:

raindropdetail
  • Left dash: VWAP for the first half of the day
  • Right dash: VWAP for the second half of the day
  • High: The highest price of the day
  • Low: The lowest price of the day
  • Volume Shading: Shows volume activity by price

There are three different colored raindrops:

  • Green raindrop (Bullish): When the right dash is higher than the left
  • Red raindrop (Bearish): When the right dash is lower than the left
  • Blue raindrop (Neutral): When both dashes are at the same level
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Green raindrops indicate that buyers ended the day in control, signifying bullish momentum going into the next day. However, bulls should look for prior raindrops on the chart for potential resistance levels.

Red raindrops indicate the day ended with sellers in control, meaning the bearish momentum can continue to the next day. However, bears should look for prior raindrops on the chart to see potential support levels.

Blue raindrops show that neither buyers nor sellers were in control, which can lead to a big move in either direction.

Advantages of Using Raindrop Charts

  • Makes trend reversals easy to spot: The raindrop charts allow you to see trend reversals easily, especially when there are blue raindrops forming. Similar to doji candles, blue raindrops can lead to breakouts.
  • Allows you to see volume: Unlike traditional candles, raindrops show which prices get a lot of volume, which is crucial for determining specific levels of support and resistance.
  • Unique to TrendSpider: Raindrop charts were invented by TrendSpider and can very well be one of the best modern charting styles created in recent times.

Practical Application in Trading

Using Raindrop Charts effectively requires understanding their nuances. For instance, a Raindrop Chart with a larger “bulge” in the second half suggests a strong volume-supported price movement.

Traders can compare Raindrop Charts with traditional charts to validate their analysis, enhancing their decision-making process in both short-term and long-term trading strategies.

How to Activate TrendSpider Raindrop Charts

On the TrendSpider platform, navigate to the top left of the chart. Next to the timeframe, you will see the icon to change the chart to raindrop charts.

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TrendSpider Raindrop Charts – Bottom Line

Raindrop Charts by TrendSpider are a testament to innovation in financial charting. They offer traders a more nuanced and insightful view of the markets, combining the power of volume and price data.

If you aren’t already, you can sign up for TrendSpider free trial using my affiliate link to try out raindrop charts today!

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FAQs

What makes Raindrop Charts unique?

  • Raindrop Charts uniquely blend volume data with price action, offering a deeper insight into market sentiment.

Can Raindrop Charts be used for all types of trading?

  • Yes, they are versatile and can be adapted to various trading styles, including swing trading and day trading.

How do Raindrop Charts help in market analysis?

  • They assist in identifying potential trend reversals and breakout patterns, backed by volume data for added reliability.

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Disclaimer: Financial Tech Wiz is an affiliate of TrendSpider and will be compensated if you purchase a TrendSpider subscription using our link.

What is a Fair Value Gap (FVG) in Trading?

fair value gap

This article will show you how to identify, trade, and understand the fair value gap in trading. 

Fair Value Gaps Meaning Explained for Traders

A fair value gap (FVG) in trading is a three-candlestick pattern that is created by imbalances between buyers and sellers.

Like a regular gap, the fair value gap acts as a magnet, drawing the asset’s price to eventually fill the gap and repair the imbalance in the market.

An FVG can occur on any timeframe, from the 1-minute chart to the daily chart. 

fair value gap

How to Identify a Fair Value Gap

Identifying fair value gaps can be a difficult task, so let’s break it down step by step:

1- Find a Large Imbalance Candle

The first step to identifying a fair value gap is to find an abnormally large candle that causes a clear imbalance between buyers and sellers. Large candles can be caused by news, economic events, or volatile price action. The large candle can be either red or green. 

2- Identify the Fair Value Gap on the Chart

Once you identify the large candle, you must analyze the candles directly to the left and right. The highs and lows of these candles determine the fair value gap range, which we can draw on our TradingView charts with horizontal lines or a rectangle.

If the large candle is green, the fair value gap is defined as the area of the preceding candle’s high and the following candle’s low. Note that the neighboring candles should not significantly overlap the large candle, as in this case, there wouldn’t be much of a gap.  

Fair Value Gap Indicator

One of the best fair value gap indicators around is the LuxAlgo HTF Fair Value Gap on TradingView.

If you want to try this indicator out for free, you can sign up with our TradingView affiliate link to receive a 30-day free trial and a discount on your subscription.

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Bullish vs. Bearish Fair Value Gaps

Fair value gaps can either be bullish or bearish, depending on the overall trend and color of the candles. 

Bullish Fair Value Gaps

A bullish fair value gap is identified by a large green candle and states that an asset price recently increased too quickly and may be temporarily overvalued. Therefore, it is likely that the price will eventually come down and fill the fair value gap before continuing higher. 

Bullish Fair Value Gap Example

An excellent example of a bullish FVG can be found on the SPY daily chart on 1/6/2023. Price was steadily consolidating, then a large green candlestick created an FVG, identified by the rectangle on the chart. The bullish FVG is determined by the preceding candles’ high and the following candles’ low. 

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Bullish FVG Example on TradingView

Bearish Fair Value Gaps

A bearish fair value gap is identified by a large red candle and means that the asset price is temporarily undervalued. Eventually, traders will likely see the price repair this imbalance by increasing and filling the fair value gap. The bearish FVG is determined by the preceding candles’ low and the following candles’ high.

Bearish Fair Value Gap Example

An example of a bearish fair value gap lies on the SPY daily chart on 1/20/2022. The FVG is marked by the purple rectangle, and we also determined the overall trend was down based on the trendline. 

bearish fvg example
Bearish FVG Example on TradingView

Identifying the Overall Trend

The overall trend of an asset is crucial when determining how you will trade the fair value gap. For example, if a stock is in an overall downtrend and you notice a bearish fair value gap, traders will consider shorting when the price fills the FVG. Ideally, the FVG is near a resistance level determined by another indicator or a bearish trendline.

Learning how to conduct technical analysis on your own can be a daunting task and even harder to implement as a trading strategy. However, you can join the HaiKhuu Trading Community to accelerate your learning curve by gaining access to thousands of experienced traders. 

The HaiKhuu Trading Community provides you with live trading calls and daily trading reports to ensure you stay ahead of the curve. 

FVG Trading Strategy – Trading Fair Value Gaps

Now that you understand what a fair value gap is and how to identify one let’s cover a basic FVG trading strategy you can try.

1- Identify a Fair Value Gap

Say for example, you identified the bullish fair value gap we used as an example above on the SPY daily chart. You would draw on your TradingView chart to mark the FVG and proceed to wait for an entry point.

2- Identify the Trend

In our bullish example, we determined that the trend was bullish, identified by our upward trendline. 

3- Determine Entry and Exit Points

To determine an entry point on this bullish fair value gap, you must wait for the gap to fill and proceed to go long once it does. The gap perfectly aligns with our upward trendline, giving it a higher chance to play out. 

4- Risk Management When Using Fair Value Gaps

Nothing is guaranteed in the world of trading, so it would be wise to set a stop loss below the trendline and FVG, in case the strategy doesn’t play out like expected to limit your loss potential.

5- When to Take Profit Using a FVG Strategy

When trading a bullish FVG setup, you can take profit when the asset increases to the next level of resistance or demand zone. Setting a sell order is great, but sometimes, you can miss out on bigger moves.

Alternatively, you can set a stop loss in profit below a support level. You will avoid selling too early by waiting for the asset to break support. However, you may generate less profit than if you attempted to sell at the ‘top’ using resistance levels. 

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TradingView vs. thinkorswim: A Detailed Comparison

tradingview vs thinkorswim

If you are looking for a trading platform that can help you perform technical analysis and execute trades, you may have come across TradingView and thinkorswim. These are two of the top trading platforms for technical analysis, but they have different features, costs, and suitability for different types of traders.

In this article, we will compare TradingView and thinkorswim in detail and help you decide which one is better for you. We will cover the following aspects of each platform:

  • Compatible brokers and assets
  • Technical analysis
  • User interface and design
  • Pricing and plans

By the end of this article, you will have a clear idea of which platform meets your trading needs and preferences.

I personally prefer to use a combination of TradingView for charting and tastytrade to place my trades.

tastytrade is essentially the newer version of thinkorswim, plus you can usually get up to a few thousand dollars when you fund a new tastytrade account and use my referral code.

tradingview vs 
thinkorswim
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How TradingView and thinkorswim Differ in Terms of Brokers and Assets

One of the first things to consider when choosing a trading platform is which brokers and assets it supports.

TradingView is a freemium service that provides you with charting, news, stock screeners, advanced indicators, and many more features. It also integrates with various brokers and offers trading for most asset classes, including cryptocurrencies. Many people use TradingView for charting, and place their trades on a separate brokerage account. TradingView is not a brokerage, but a software traders use for charting and other tools.

thinkorswim is also a charting platform, but it is owned by the brokerage Schwab, meaning you must have an funded Schwab or TD Ameritrade account to use the platform. thinkorswim is a free platform that only works with Schwab and TD Ameritrade and offers trading for stocks, options, bonds, futures, currencies, and Bitcoin futures.

Here are some of the advantages and disadvantages of each platform in terms of brokers and assets:

TradingView

Pros

  • Supports trading for stocks, bonds, commodity futures, currencies, and cryptocurrencies
  • Integrates with a variety of brokers, such as Interactive Brokers, Tradovate, AMP Global, OANDA, Forex.com, and Gemini
  • Allows you to trade directly from the charts or use paper trading to practice without risking real money

Cons

  • The level of integration may vary depending on the broker and the asset class
  • Does not support options trading or provide options analysis tools
  • Requires a paid subscription to access advanced features and services
tradingview vs thinkorswim
TradingView

thinkorswim

Pros

  • Supports trading for stocks, options, bonds, commodity futures, currencies, and Bitcoin futures
  • Fully integrated with TD Ameritrade’s brokerage services and account management
  • Supports options trading and includes options chain data and risk diagrams for multi-leg options strategies

Cons

  • Only works with Schwab (formerly TD Ameritrade) and requires a TD Ameritrade or Schwab account to use the platform
  • Does not support cryptocurrency trading or provide cryptocurrency price data
  • May have higher commissions and fees than some other brokers

Based on this comparison, TradingView may be the better choice for traders who want to trade a wider range of asset classes, especially cryptocurrencies, and have more flexibility in choosing their broker. Thinkorswim may be the better choice for traders who are already TD Ameritrade or Schwab customers or who want to trade options.

thinkorswim vs tradingview
thinkorswim

How TradingView and thinkorswim Compare in Terms of Technical Analysis

Technical analysis is the process of using charts, indicators, and patterns to analyze the price movements of an asset and predict its future direction. Both TradingView and thinkorswim offer comprehensive and customizable charting tools and indicators, but they have some differences in their technical analysis features.

TradingView excels in technical analysis and offers a wide range of charting tools and indicators. It is also more beginner-friendly and has a built-in trader community. Thinkorswim also provides robust charting capabilities and is known for its high-quality charts. It also supports options trading and includes options analysis tools.

Here are some of the similarities and differences between the two platforms in terms of technical analysis:

TradingView

Pros

  • Offers over 100 chart types, including candlestick, line, bar, renko, heikin ashi, kagi, point & figure, and more
  • New users can usually get a 30-day free trial when you use my link
  • Provides over 50 drawing tools, such as trend lines, channels, Fibonacci retracements, pitchforks, Gann tools, and more
  • Includes over 100 pre-built indicators, such as moving averages, oscillators, volume indicators, volatility indicators, and more
  • Allows you to create your own custom indicators using Pine Script or import indicators from other users
  • Has a built-in trader community where you can share your ideas, follow other traders, and get feedback

Cons

  • Requires a paid subscription to access more advanced features, such as the volume profile indicator, multiple charts per layout, intraday data, extended trading hours, and more
  • Does not support options trading or provide options analysis tools

thinkorswim

Pros

  • Offers over 20 chart types, including candlestick, line, bar, monkey bars, and more
  • Provides over 30 drawing tools, such as trend lines, channels, Fibonacci retracements, pitchforks, Gann tools, and more
  • Includes over 300 pre-built indicators, such as moving averages, oscillators, volume indicators, volatility indicators, and more
  • Allows you to create your own custom indicators using thinkScript or import indicators from other users

Cons

  • Has a steeper learning curve and may be overwhelming for beginners
  • Does not have a built-in trader community or a social media integration
  • May have some compatibility issues when using the desktop or mobile platform

Based on this comparison, TradingView may be the better option for traders who want to use a wider range of charting tools and indicators, or who want to interact with other traders and learn from their ideas. Thinkorswim may be the better option for traders who want to use options analysis tools.

How TradingView and thinkorswim Differ in Terms of User Interface and Design

User interface and design are important factors for trading platforms as they affect the user experience and satisfaction. A good user interface should be easy to navigate, intuitive to use, and visually appealing. A good design should be modern, responsive, and customizable.

TradingView has a more user-friendly and modern interface, while thinkorswim has a more vintage and customizable interface. Both platforms offer a web-based version as well as a desktop and mobile version.

Here are some of the pros and cons of each platform in terms of user interface and design:

TradingView

Pros

  • Has a simple and intuitive interface that is easy to use for beginners and experts alike
  • Has a modern and sleek design that is aesthetically pleasing and professional-looking
  • Has a web-based platform that can be accessed from any browser without downloading or installing anything
  • New users can usually get a free trial and a discount using this link

Cons

  • Has a limited customization options for the interface layout, colors, fonts, etc.
  • Has a desktop and mobile version that may not have all the features and functions of the web-based platform

thinkorswim

Pros

  • Has a high level of customization options for the interface layout
  • Has a desktop platform that is fast and reliable and offers more features and functions than the web-based platform

Cons

  • Has a complex and cluttered interface that may be confusing and overwhelming for beginners
  • Has a dated and bulky design that may not be appealing to some users
  • The desktop platform can get laggy at times, depending on your PC

Based on this comparison, TradingView may be the better choice for traders who want to use a simple and modern interface that is easy to use and access from any browser. Thinkorswim may be the better choice for traders who want to use a more customizable interface that offers more features and functions on the desktop platform.

How TradingView and thinkorswim Compare in Terms of Pricing and Plans

Pricing and plans are another important aspect to consider when choosing a trading platform, as they affect the access to features and services. TradingView is a free platform with optional pay-to-use service that offers different plans depending on the features and services needed, while thinkorswim is a free platform that comes with a TD Ameritrade or Schwab account.

Here are some of the details and differences between the two platforms in terms of pricing and plans:

TradingView

  • Offers four plans: Basic, Pro, Pro+, and Premium
  • The Basic plan is free and offers limited features, such as one chart per layout, one alert, three indicators per chart, etc.
  • The Pro plan costs $14.95 per month or $155.40 per year and offers more features, such as two charts per layout, 10 alerts, five indicators per chart, etc.
  • The Pro+ plan costs $29.95 per month or $299.40 per year and offers even more features, such as four charts per layout, 30 alerts, 10 indicators per chart, etc.
  • The Premium plan costs $59.95 per month or $599.40 per year and offers the most features, such as eight charts per layout, 200 alerts, 25 indicators per chart, etc.
  • All paid plans offer additional benefits, such as intraday data, extended trading hours, priority customer support, etc.
  • Usually offers a 30-day free trial for any paid plan

thinkorswim

  • Is free to use and only requires a funded account
  • Comes with a TD Ameritrade or Schwab account, which may have commissions and fees for trading certain assets
  • Offers all the features and services without any limitation or restriction

Based on this comparison, TradingView may be the better option for traders who want to access more advanced and expansive features and services, and who don’t mind paying a monthly or yearly fee. Thinkorswim may be the better option for traders who want to use a free platform with comprehensive features and services, and who are already TD Ameritrade customers or don’t mind opening an account with them.

FeatureTradingViewThinkorswim
Compatible BrokersVarious brokers, including Interactive Brokers, Tradovate, AMP Global, OANDA, Forex.com, and GeminiOnly TD Ameritrade & Schwab
Assets OfferedStocks, bonds, commodity futures, currencies, and cryptocurrenciesStocks, bonds, commodity futures, currencies, and Bitcoin futures
Options TradingNot supportedSupported with options chain data and P&L charts
PricingFreemium service with different plans ranging from $12.95 to $59.95 per month. You can also get a free trial. Free platform for TD Ameritrade & Schwab customers
Charting ToolsWider range of charting tools and indicators than ThinkorswimHigh-quality charts and options analysis tools
Ease of UseEasier to use than ThinkorswimMore complex and less intuitive than TradingView

TradingView vs. thinkorswim: Which Trading Platform Is Better for You?

In conclusion, TradingView and thinkorswim are both excellent trading platforms for technical analysis, but they have different features, costs, and suitability for different types of traders. Here is a summary of the main differences and similarities between the two platforms:

  • TradingView is a freemium service that integrates with various brokers and offers trading for most asset classes, including cryptocurrencies. Thinkorswim is a free platform that only works with TD Ameritrade or Schwab and offers trading for stocks, bonds, futures, currencies, and Bitcoin futures.
  • TradingView excels in technical analysis and offers a wide range of charting tools and indicators. It is also more beginner-friendly and has a built-in trader community. Thinkorswim also provides robust charting capabilities and is known for its high-quality charts. It also supports options trading and includes options analysis tools.
  • TradingView has a more user-friendly and modern interface, while thinkorswim has a more advanced and customizable interface. Both platforms offer a web-based version as well as a desktop and mobile version.
  • TradingView offers different plans depending on the features and services needed, while thinkorswim comes with a TD Ameritrade or Schwab account and offers all the features and services without any limitations or restrictions.

Based on this comparison, TradingView may be the better choice for traders who want to trade a wider range of asset classes, especially cryptocurrencies, and have more flexibility in choosing their broker.

TradingView may also be the better choice for traders who want to use a wider range of charting tools and indicators, or who want to interact with other traders and learn from their ideas. TradingView may also be the better choice for traders who want to use a simple and modern interface that is easy to use and access from any browser.

Thinkorswim may be the better choice for traders who are already TD Ameritrade or Schwab customers or those who want to trade options. Thinkorswim may also be the better choice for traders who want to use options analysis tools.

However, the final decision should be based on your individual preferences and trading requirements. You can try out both platforms and see which one suits you better. You can also read more articles on TradingView compared to other platforms like TradingView vs. NinjaTrader, TradingView vs. Webull, Barchart vs. TradingView, or TradingView vs. Finviz to learn more about their features and benefits.

FAQ: TradingView vs Thinkorswim

Is TradingView compatible with TD Ameritrade?

No, TradingView is not compatible with TD Ameritrade. TradingView works with a variety of different brokers, but TD Ameritrade is not one of them. On the contrary, Thinkorswim is exclusive to TD Ameritrade and Schwab clients and only allows trading through a TD Ameritrade or Schwab account.

Is TradingView the best charting tool?

TradingView is widely regarded as one of the best charting tools available online. Technical analysts favor it for its wide range of technical indicators, drawing tools, and charting features that can be customized. It also supports the automation of trading strategies through its Pine Script programming language.

Can I trade directly from TradingView?

Yes, you can trade directly from TradingView if you have an account with one of the supported brokers. TradingView integrates with brokers such as Interactive Brokers, Tradovate, AMP Global, OANDA, Forex.com, and Gemini. You can also use paper trading to practice your skills without risking real money.

How much is TradingView a month?

TradingView offers both free and paid subscription plans. The free version provides access to basic features, while the paid plans unlock additional features and data. The paid plans range from $14.95 to $59.95 per month, depending on the level of service and billing frequency. If you use my link, you can get a discount on your premium subscription!

Do I need a broker for TradingView?

No, you can use TradingView’s charting features without a broker. However, if you want to place trades, you will need a brokereage account, which TradingView does not provide. TradingView does not provide brokerage services itself but rather connects you with various brokers that offer different asset classes and trading conditions

Before you go

If you want to keep educating yourself about personal finance, you must check out these posts as well:

thinkorswim vs. tastytrade

What is the Most Successful Options Strategy

Options Trading for Income: The Complete Guide

Mark Minervini’s Trading Strategy: 8 Key Takeaways

The Best Options Trading Books

TradingView Pricing Guide

The Best Laptops and Computers for Trading

The Best Monitors for Trading

How to Get a TradingView Free Trial

The Best TradingView Indicators

TrendSpider vs. TradingView

TrendSpider Free Trial

TrendSpider Discount Code

The 7 Best Laptops for Trading in 2024

bestlaptopsfortrading

If you need a trading computer or laptop, check these out.

The Best Trading Laptops:
1- HP 14 Laptop
2- Acer Nitro 5 AN515-55-53E5 Gaming Laptop
3– ASUS TUF Gaming F15 Gaming Laptop
4- 2023 MacBook Pro Laptop
5- Microsoft Surface Pro 8-13″
6- Acer Predator Helios 300 PH315-54-760S Gaming Laptop
7- Gaming Laptop by HP Victus

I have created a list of laptops ranging from a few hundred dollars to over one thousand dollars. Instead of including a bunch of useless facts, I have stated the specs and the price.

If you are looking for charting software, we highly recommend TradingView, as it can be used on any computer.

Disclosure: This post contains affiliate links from Amazon and TradingView. As an Amazon Associate, I earn from qualifying purchases. This means that if you click on these links and make a purchase, I will receive a small commission at no extra cost to you.

The Best Laptops for Trading in 2024:

1- HP 14 Laptop

Specs:

– 14in screen

– 256 GB PCIe NVMe M.2 SSD

AMD Ryzen 5 5500U CPU

– 8 GB Ram

– Integrated graphics

2- Acer Nitro 5 AN515-55-53E5 Gaming Laptop

Specs:

– 15.6in screen

– 256 GB NVMe SSD

– Intel Core i5-10300H CPU

– Nvidia GeForce RTX 3050 GPU

3- ASUS TUF Gaming F15 Gaming Laptop

Specs:

– 15.6in screen

– 512 GB PCIe SSD

– Intel Core i5-10300H CPU

– Nvidia GeForce GTX 1650 4GB GDDR6

4- 2023 MacBook Pro Laptop

Specs:

– 16.2in screen

– 512 GB SSD

– Apple M3 Pro Chip w/ 12-Core CPU

– 18-Core GPU

5- Microsoft Surface Pro 8-13″

Specs:

– 13in screen

– 256 GB SSD

– Intel Iris Xe Graphics

– Intel Core i7 4.7GHz CPU

6- Acer Predator Helios 300 PH315-54-760S Gaming Laptop

Specs:

– 15.6in screen

– 512 GB SSD

– Intel i7-11800H CPU

– NVIDIA GeForce RTX 3060 Laptop GPU

7- Gaming Laptop by HP Victus

Specs:

– 15.6in screen

– 1TB SSD

– Intel 12th Core i5-12450H

– NVIDIA GeForce GTX 1650

The Best Computers for Trading

1- Lenovo IdeaCentre Gaming 5i

Specs:

– NVIDIA GeForce RTX 3060

– Intel i5 12400-16GB RAM

– 1TB HDD + 512GB SSD

– Win 11

– Mouse & Keyboard

2- Corsair Vengeance i7300 Series Gaming PC

Specs:

– AMD Ryzen 5 5600X

– NVIDIA® GeForce RTX™ 3060Ti Graphics

– 16GB Vengeance RGB PRO DDR4 Memory

– 1TB M.2 NVMe SSD

Benefits of Trading Laptops

Laptops that can run trading software smoothly are crucial if you are actively trading in the stock market.

Luckily, trading software like TradingView is not nearly as hard to run as a video game. Therefore, you can get a trading laptop for as little as a few hundred bucks. The following are all benefits of a good stock trading laptop:

– Lower risk of ruining a trade.

– No lag, so you can get in and out of trades smoothly.

– Clear screen to use for charting

If you care about the appearance of your notebook and are a creative person, you can decorate your notebook with custom stickers.

The Best Laptops for Trading: Bottom Line

If you are looking to start your trading journey, you must pick one of the best laptops for trading to ensure you can trade smoothly. If your stock trading laptop is not powerful enough to run trading software, you can potentially lose a lot of money.

Imagine if you place a trade and your computer crashes. If you did not place a stop loss, there is a chance that you lose a lot of money just because of your choice of laptop for trading.

Most charting software like TradingView is not hard to run. Therefore you do not have to spend an arm and a leg on a trading laptop. However, you must make sure the computer has a decent processor and RAM so that you can run trading platforms as smoothly as possible.

Before you go

If you want to keep educating yourself about personal finance, you must check out these posts as well:

What is the Most Successful Options Strategy

Options Trading for Income: The Complete Guide

Mark Minervini’s Trading Strategy: 8 Key Takeaways

The Best Options Trading Books

TradingView Pricing Guide

The Best Monitors for Trading

How to Get a TradingView Free Trial

The Best TradingView Indicators

The Best Keyboards For Trading

Russell 1000 vs. 2000 vs. 3000 Compared

russell1000vs2000vs3000info

Here are the key takeaways for the Russell 1000 vs. 2000 vs. 3000:

  • The Russell 1000 includes large-cap companies with higher market capitalizations.
  • The Russell 2000 focuses on smaller companies with lower market capitalizations.
  • The Russell 3000 combines both, offering a comprehensive view of the market’s large-cap, mid-cap, and small-cap segments.
russell1000vs2000vs3000info

Key Differences Between Russell 1000, 2000, and 3000

  • Market Capitalization Differences: The primary difference lies in the market capitalization of the companies each index represents.
  • Sector and Industry Representation: While the Russell 1000 is skewed towards more stable, large-cap sectors, the Russell 2000 offers exposure to various small-cap sectors. The Russell 3000, in contrast, offers a blend of both.
  • Performance Comparison: Historically, the Russell 1000 and 2000 are more stable, and the Russell 2000 is more volatile since it holds small-cap companies.

Visualizing the Returns of the Russell 1000, 2000, and 3000

In the image below, all 3 of these indices are represented within the same chart, thanks to TradingView. TradingView allows you to compare multiple stocks, ETFs, cryptos, and more on a single chart.

russell1000vs2000vs3000chart
Image From TradingView

As you can see, the Russell 1000 and 3000 are nearly identical, while the Russell 2000 is much more volatile. Note that this data is the total return and includes dividends.

TradingView is a great way to compare assets on a single chart for free. Also, if you sign up for TradingView using our affiliate link, you can get a free trial and a discount on the premium subscriptions.

Russell 1000 vs. 2000 vs. 3000 ETF Symbols

  • Russell 1000: IWB
  • Russell 2000: IWM
  • Russell 3000: IWV

What is the Russell 1000 Index?

  • Definition and Composition: The Russell 1000 Index represents the top 1000 U.S. companies based on market capitalization. It is a subset of the Russell 3000 Index and accounts for about 90% of the market capitalization of the U.S. stock market.
  • Types of Companies Included: This index predominantly includes large-cap companies, showcasing the highest-valued corporations in the United States.
  • Performance Characteristics: The Russell 1000 is known for its stability and includes well-established companies. It’s often used as a benchmark for large-cap investments.

What is the Russell 2000 Index?

  • Definition and Composition: The Russell 2000 Index tracks the performance of 2000 smaller companies in the U.S. stock market, making it a small-cap index.
  • Focus on Small-Cap Companies: This index provides a comprehensive view of the small-cap market, offering insights into lesser-known but potentially fast-growing companies.
  • Performance Trends: The Russell 2000 is known for its volatility and potential for high growth, making it an attractive option for risk-tolerant investors.

What is the Russell 3000 Index?

  • Definition and Composition: The Russell 3000 Index is a market-capitalization-weighted stock market index that includes the largest 3000 U.S. stocks, covering about 98% of the U.S. equity market.
  • Overall Market Representation: It combines the characteristics of both the Russell 1000 and 2000, offering a comprehensive view of the broader U.S. stock market.

Investment Strategies Based on Russell Indices

Each index serves different investment needs:

  • Russell 1000: Suitable for investors seeking stability and lower risk.
  • Russell 2000: Attracts those looking for growth potential in small-cap stocks.
  • Russell 3000: Ideal for investors seeking a total stock market index.

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

tradingview plus icon

Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

tradingview adj icon

As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

tradingview banner

How to Learn More About Investing

Researching about finance and stocks can be a daunting task for beginners. It can be extremely difficult to piece things together when you are just starting out, and even if you are financially savvy.

If you want to accelerate your learning curve, you should join the HaiKhuu Trading Community. HaiKhuu gives you access to thousands of experienced investors and traders willing to help you and answer any questions you may have.

Related Articles

JEPI vs. JEPIX Compared

VTI vs. VOO ETFs Compared

FXAIX vs. VOO Funds Compared

What is the Most Successful Options Strategy

cboe put selling strategy

Options trading may seem complex, but there are various basic options strategies investors can use to enhance their portfolio’s returns.

Many investors jump into options trading with a lack of knowledge of the most successful options strategy.

To stand a chance of making consistent income, you must focus on selling option premium.

You can buy put options as stock insurance to hedge your portfolio, but this is not the most successful options strategy due to factors like theta working against you. 

The Best Options Strategies

Selling options is the most successful options strategy, and there are backtests performed by the CBOE to prove this point. The first strategy on the list is selling puts and the cash-secured put.

Selling Cash-Secured Puts

When you sell a cash-secured put, you are paid a cash premium for promising to buy 100 shares of stock at the put’s strike price.

For example, if you sell a $100 strike put on $AAPL, you are promising to buy 100 shares of $AAPL at $100 per share and collect a cash premium.

There are various backtests on selling put options, showing that selling puts provides similar returns to the S&P 500 index with less volatility.

You can also use the S&P 500 futures options to sell premium with span margin.

If you want a broker built for options traders, consider signing up for a tastytrade brokerage account.

cboe put selling strategy
Source: CBOE

The image above shows the ticker symbols $PUT, $WPUT, and $SPY.

$PUT is the CBOE put write index that sells ATM one-month options and invests the proceeds into T-Bills.

$WPUT sells weekly put options and rolls each week.

$SPY is the S&P 500 index. This chart also uses total return, so the $SPY line includes dividends.

While the $SPY returns are higher, this is because of the massive bull run that has occurred since 2009.

However, it is critical to notice that selling puts drastically outperformed the market in the 2008 financial crisis.

The stock market does not always rally, and selling put options will give you similar returns with less risk in the long run.

Selling Covered Calls

The covered call strategy is when you own 100 shares of a stock and promise to sell them by writing a call option.

For example, if you own 100 shares of $AAPL at $100 per share, you can sell a $110 call option and promise to sell these shares at $110.

You will get paid a premium to do this, and in the worst case, you are forced to sell your shares at a profit and collect a premium.

If you cannot afford 100 shares of a stock, you can utilize the poor man’s covered call strategy.

Selling covered calls comes with the same risk profile as selling cash-secured puts. The difference is that you must own shares to sell covered calls.

Therefore, investors who already own shares of stock can easily sell covered calls to generate income in their portfolios.

You can also combine the cash-secured put and covered call strategy, which is the wheel option strategy.

Delta-Neutral Options Strategy: Iron Condor

The iron condor is a delta-neutral options strategy, meaning you want the stock to trade sideways after selling an iron condor.

Iron condors attract beginner options traders because it may seem like the iron condor will make money regardless of how the stock moves.

However, bullish premium-selling strategies are generally better since the stock market has a positive drift and goes up in the long term.

The jade lizard options strategy is similar to the iron condor, except without a long put.

Delta-Neutral Options Strategy: Put Broken Wing Butterfly

A put broken wing butterfly strategy is one of the least risky put selling strategies.

A put broken wing butterfly is created by selling a bullish put spread and buying a bearish put spread to hedge.

Since the bullish put spread is further OTM, it will decay quicker than the bearish put spread, providing steady returns with low volatility.

Pros and Cons of Options Trading

When deciding whether you want to employ options trading in your portfolio, consider the following pros and cons. These will primarily be based on option selling strategies and not buying options.

Pros:

  • Better risk-adjusted returns than holding index funds
  • Your capital is more liquid
  • You can trade 1256 contracts for tax advantages

Cons:

  • Tax treatment is worse than long-term investing
  • Commission fees
  • Active management is required

Learn the Most Successful Options Strategy

There are various options available if you want to learn how to trade the most successful options strategies.

Join a Trading Community

If you join a trading community, you can actively ask other traders questions to improve your strategies and trading mindset.

There are amazing communities like HaiKhuu Trading, full of like-minded stock traders who help each other become profitable on the stock market.  

Read Options Trading Books

If you read the best options trading books, you can learn from the greatest traders ever.

Knowledge is power, and reading books is one of the best ways to improve your knowledge about trading options.

Learn Technical Analysis

Technical analysis involves studying chart patterns using indicators and volume. Using technical analysis with your options trading will allow you to find optimal entry and exit points using charts.There are free charting tools like TradingView that allow you to start today with just an internet connection. If you sign up using our affiliate link, you can get a free trial and a discount on your subscription.

TradingView Paper Trading Tutorial and Tips

tradingviewpapertrading

What is TradingView Paper Trading?

TradingView Paper Trading enables users to simulate trades in real time without risking their own money. 

You can use TradingView’s paper trading to forward test any strategy, whether it’s based on indicator signals or even an alert service you have access to. 

However, paper trading is not perfect, and there are many downsides you must pay attention to, which we will cover in this article. 

Is TradingView Paper Trading Free?

Yes, paper trading on TradingView is accessible for free, regardless of your subscription level. 

However, you need to have at least a free account on TradingView. 

You can use our affiliate link to sign up for a free TradingView account, and if you ever decide, our link gives you access to a free trial and a discount on your subscription. 

How to Use TradingView Paper Trading

To begin paper trading on TradingView, follow these simple steps:

  • Open Any Chart: Choose a market or instrument you’re interested in.
  • Trading Panel Access: Click the trading panel located at the bottom of the chart.
tradingviewpapertrading1
  • Select TradingView Paper Trading: Choose the paper trading option or a broker if you have one linked.
tradingviewpapertrading2
  • Minimize the New Window: Close the new window by clicking the top right minimize icon.
tradingviewpapertrading3
  • Trade from the Chart: When viewing a chart, click ‘trade’ at the bottom of the screen to open the order window.
tradingviewpapertrading4
  • Placing Trades: Use the DOM to place trades, set up stop-loss, limit orders, and take profit orders.
tradingviewpapertrading5

Mistakes to Avoid While Paper Trading on TradingView

Paper trading can be a great way to gain some experience with a strategy before using real money, but there are many factors that can give you false expectations, such as:

1- Failing to account for slippage and liquidity

If you are paper trading, you must understand that when you place a buy or sell order with real money, you will not get filled at the exact current price. This is especially true for assets like less than ideal liquidity, such as low-volume stocks and cryptocurrencies. 

Failing to account for slippage will make your strategy perform much better than it will with real money. Therefore, TradingView paper trading should NOT be the main deciding factor when testing your strategies. 

2- Lack of emotions

When you are paper trading with fake money, it is impossible to feel the real emotional impacts of losing or making money. Losing a lot of your actual money can cause you to make much different decisions than “losing” fake money. Therefore, that is why it is crucial to backtest and develop a trading plan that you can follow.

3- Breaking your strategies rules

When paper trading, it is easy to break your rules. Say your strategy calls for a -1 % stop-loss. If you decide to break this rule and let a trade go to -2 %, and it recovers and becomes a winning trade, you have effectively broken your rules and built a bad habit, thanks to paper trading. 

4- Building false confidence

If you decide to paper trade a strategy, and every trade plays out perfectly, this doesn’t necessarily mean your strategy is flawless. Continuing paper trading until you have seen losses and wins is optimal to ensure you don’t build a bias that negatively impacts you. 

tradingview banner

Transitioning From Paper Trading to Real Trading

When you have become comfortable after backtesting and paper trading, you may continue to implement it with real money. To ensure you have a smooth and profitable transition, ensure that you follow these tips:

1- Assess your readiness

Ensure you have analyzed your backtests and done enough paper trading so you know exactly what to expect, even in the most volatile market conditions. 

2- Start small

Sizing is a crucial aspect when it comes to trading your strategy, as it lowers emotional decisions and limits your loss potential while you are just starting out.

3- Stick to your plan

After spending hours paper trading and backtesting, it would be counterproductive to break your rules. Always stick to your plan even when your hunches tell you to deviate.

FAQ

Does TradingView paper trading support options?

No, TradingView paper trading does not currently support options trading.

TradingView Paper Trading – Bottom Line

Paper trading on TradingView is a great way to test your strategy, given you are aware of its limitations. It is a great way to simulate the trading experience, but failing to account for common paper trading pitfalls such as slippage and commissions can give you unrealistic expectations. 

If you haven’t already, I highly recommend you sign up for a free TradingView account so you can try out paper trading yourself. Using our link to sign up, you can also get a free trial of TradingView’s premium subscriptions!