Knowing how to use hot keys is an important skill for day trading. Day traders are hunters of volatility. That volatility is the bread and butter of day trading. You need to be lightening quick when day trading and hot keys afford traders this ability. The video below goes into the importance of using hot keys and shows you how to use them with Interactive Brokers. Most brokers have the ability for hot keys, so you don’t have to use IB.
The foundation of the stock market is the fight between bulls and bears. In fact, each side vies for control all day every day. Day trading strategies allow you to be the one taking advantage of price action.
There are different strategies in day trading; whether getting in and out of a trade within seconds or following candlesticks patterns. There’s no right or wrong way. It’s all about preference.
How to Use Hot Keys
In learning how to use hot keys it’s important to define what they are. Hot keys are linked to your broker so you can buy and sell live market orders with the touch of two buttons.
In other words, you’re getting in and out of a trade in the time it takes you to hit two keys on your keyboard. That’s pretty quick trading. Normally it takes a couple clicks of a mouse as well as confirmation before sending the trade.
With hot keys it’s done in the time it takes to hit a button. The first fifteen minutes of the market open tend to be extremely volatile. Using the hot key strategy allows you the ability to make money on the volatility of the one minute candles. In order to make sure your trades are being executed in a timely manner you need to make sure you have a good day trading computer setup.
A slow computer will hurt hot key trading. Make sure you have the best laptop for trading to avoid having a computer that doesn’t mesh with hotkeys.
Even having something as simple as an adjustable standup desk can allow you to be fresh and ready to trade quickly. You’re trading at the speed of lightning hence the importance of being comfortable.
How to Set Them Up
How to use hot keys depends on how they’re set up. Most brokers have standard hot keys but they can also be customized. Customizable hot keys allow you to have it set up to trade what you want. Take our day trading course.
For example, if you want to buy 2,000 shares of a stock, you can can customize a hot key so that it automatically buys and/or sells 2,000 shares each time it’s hit.
Make sure not to have too many hot keys set ups. It can mess up other programs on your computer if they’re running at the same time. Having too many can also be hard to remember. That could having you place a trade you don’t want.
Brokers such as Interactive Brokers allow you to customize your hot keys. Read our Interactive Brokers review to see if it’s a broker you’d like to use.
What Are Hot Keys on a Keyboard?
- Keys on your keyboard you can use to get in and out of a trade as soon as possible. With just the push of a button a trade is opened or closed.
How to Use Hot Keys & Benefits
There are benefits to hot key trading. Probably the most obvious benefit is speed. Buy and sell orders are being executed at lightening fast levels. This is noticeable if you’re placing multiple trades at once.
It also allows for faster cancels. If you get a bad trade, you can get out quickly. Lets say you’re in 6 different trades. You notice the market is starting to fall which affects your stocks. You can hit 1 button and get out of every trade instead of going through each one to cancel.
This can save a lot of time and can save your profits as well as minimize loss. If you need more stock market training then take our free courses on our website.
Practice Before Going Live
You’ve learned how to use hot keys and want to try trading with them. It’s so important to practice before using real money. It may seem simple. You’re only hitting a button, but trading penny stocks is a very volatile strategy.
What happens if you hit the wrong hot key? Hot keys are used for volatile stocks. Money is made and lost within seconds.Without practice, you’re risking your brokerage account.
However, practicing allows you to work out the kinks. You get familiar with which hot key is which to say nothing of where they’re located. That might seem simple but in the heat of the moment anything can happen.
You’re most likely going to be staring at charts and not which button you need to hit. We teach how to use hot keys live in our trade rooms. Check out our trading service to learn more.
Get comfortable with the location of your buy and sell buttons. It needs to be second nature so you don’t have to think about it. If you’re still struggling with hotkeys, consider something like an Elgato stream deck. This handy little USB device connects to your computer and lets you bind hotkeys to each LCD button. Here you can label the buttons to say exactly what each button does, as well as launch your trading software, broker, saved URLS, and much more. This can cut down on errors, as well as simplify the process of day trading, which is already complicated enough!
The Bottom Line on How to Use Hot Keys
How to use hot keys is the ability to trade within seconds. Volatility is key for this style of trading. As any trader knows, volatility has price moving up and down quickly.
Hot key trading allows traders to take advantage of those spikes within seconds. The first 15 minutes of the trading day is the most volatile.