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How to Reset Thinkorswim Paper Money: The Ultimate Guide

Let’s cut to the chase: You can directly reset your Thinkorswim Paper Money account to a specific balance. There is no explicit “reset” button within the platform. Instead, you’ll need to request a balance adjustment from TD Ameritrade’s support team. This usually involves contacting their Trader Services desk either via phone or secure message within the platform. Prepare to specify the desired starting balance for your simulated trading account.

Why Reset Your Paper Money Account?

Ah, the inevitable carnage of early trading! We’ve all been there. Paper money trading in Thinkorswim is a fantastic tool for learning and testing strategies without risking real capital. But let’s be honest: sometimes, things go south. Maybe you blew through your initial balance with overly aggressive trades, experimented with complex options strategies that backfired spectacularly, or simply want to start fresh with a clean slate. Whatever the reason, resetting your paper money account allows you to:

Learn from Mistakes: A fresh start allows you to apply the lessons learned from previous trading sessions without the psychological baggage of past losses.
Test New Strategies: Resetting provides a clean environment to rigorously test new trading strategies, position sizing techniques, and risk management protocols.
Simulate Different Account Sizes: You might want to experiment with how your strategy performs with a smaller or larger account balance to better prepare for live trading.
Refine Risk Tolerance: By repeatedly trading and resetting, you can dial in your risk tolerance and identify comfortable position sizes.

The Art of the Adjustment: Contacting TD Ameritrade

While a one-click reset button would be convenient, TD Ameritrade prefers a more controlled approach. This ensures accountability and prevents accidental resets. Here’s the process:

Secure Message Method

Log in to Thinkorswim: Access your Thinkorswim platform, either the desktop application or the web version.
Navigate to Support: Look for the “Support” or “Help” section within the platform. The exact location may vary slightly depending on your version of Thinkorswim.
Compose a Secure Message: Select the option to “Send Secure Message” or “Contact Support.”
Craft Your Request: In your message, be clear and concise. State that you wish to adjust your Thinkorswim Paper Money account balance. Specify your desired new balance. For example, “I would like to reset my Paper Money account balance to $100,000.”
Submit Your Message: Send the message and wait for a response from TD Ameritrade’s support team.

Phone Call Method

Locate Trader Services Number: Find the phone number for TD Ameritrade’s Trader Services desk. This information is readily available on their website.
Call Trader Services: Dial the Trader Services number and wait to be connected with a representative.
Identify Yourself: Clearly state your name and account information.
Request a Balance Adjustment: Explain that you want to adjust your Paper Money account balance and specify your desired new balance.
Follow Instructions: The representative will likely verify your identity and may ask additional questions before processing your request.

What to Expect: Patience is Key

Keep in mind that adjusting your Paper Money balance is not instantaneous. It may take a few hours or even a day or two for your request to be processed, especially during peak trading times. Be patient and check your account balance periodically to confirm that the adjustment has been made.

Avoiding Future Blow-Ups: Trading Wisely

While resetting is convenient, it’s far more beneficial to learn how to manage your risk and avoid blowing up your account in the first place. Here are a few strategies to consider:

Start Small: Don’t trade with the full balance immediately. Start with small positions to get a feel for the market and your strategy.
Use Stop-Loss Orders: Always use stop-loss orders to limit your potential losses on each trade.
Manage Position Size: Carefully calculate your position size based on your risk tolerance and account balance. A common rule of thumb is to risk no more than 1-2% of your account on any single trade.
Diversify Your Portfolio: Don’t put all your eggs in one basket. Diversify your portfolio across different asset classes and sectors to reduce your overall risk.
Track Your Performance: Keep a detailed record of your trades, including entry and exit prices, position sizes, and profits/losses. This will help you identify areas for improvement.

Thinkorswim Paper Money FAQs

Here are some frequently asked questions about Thinkorswim Paper Money to guide you.

1. Is There a Limit to How Many Times I Can Reset My Paper Money Account?

While there isn’t a strictly defined limit, excessive reset requests might raise eyebrows. Focus on learning from your trades rather than relying on frequent resets. Consistent requests may lead to a discussion with TD Ameritrade representatives about appropriate usage.

2. Can I Reset My Paper Money Account to a Value Higher Than My Original Balance?

Yes, you can typically request a balance higher than your initial starting balance. This allows you to simulate trading with a larger account size.

3. Will Resetting My Paper Money Account Affect My Real Money Account?

Absolutely not. Your Paper Money account is completely separate from your real trading account. Any actions taken in your Paper Money account will not affect your real money account balance or trading activity.

4. Can I Request a Specific Date and Time for the Reset to Occur?

Unfortunately, no. You can request the reset, but you can’t control the exact time it happens. The processing time depends on TD Ameritrade’s internal procedures and current workload.

5. What Happens to My Open Positions When I Reset My Paper Money Account?

All open positions in your Paper Money account will be closed before the balance is adjusted. Ensure you’ve closed any desired positions before requesting the reset.

6. Can I Reset My Paper Money Account Through the Thinkorswim Mobile App?

You can initiate the process via the mobile app by contacting support, but it might be easier to manage through the desktop or web platform due to the more comprehensive messaging and support features.

7. Is There a Cost Associated with Resetting My Paper Money Account?

No, resetting your Paper Money account is a free service provided by TD Ameritrade for educational and simulation purposes.

8. How Long Does It Typically Take for TD Ameritrade to Process a Reset Request?

Processing times can vary, but it usually takes between a few hours and up to one business day. During peak trading times or holidays, it may take slightly longer.

9. Can I Choose a Custom Starting Balance When Resetting?

Yes, you can specify any desired starting balance when requesting the reset, within reasonable limits. Requesting an excessively large or unrealistic balance might be questioned.

10. Will My Paper Money Account Data (Trading History) Be Saved After a Reset?

No, your trading history within the Paper Money account is typically cleared when the balance is adjusted. If you want to keep a record, make sure to manually log your trades before requesting the reset.

11. What If I Made a Mistake and Want to Undo the Reset?

Unfortunately, once the Paper Money account has been reset, you cannot undo the process. This reinforces the importance of carefully considering your desired balance before submitting the request.

12. Can I Automate the Paper Money Resetting Process?

No, Thinkorswim does not offer a way to automate the resetting process. It requires manual intervention through contacting their support team.

Paper money trading in Thinkorswim is an invaluable resource for traders of all levels. By understanding the process of resetting your account and, more importantly, learning from your simulated trades, you can significantly improve your trading skills and prepare yourself for the real market. Remember, the goal is not just to make money, but to become a consistently profitable and well-informed trader. Happy trading!