An activemark mechanism for a live parsing editor allows marks (labels) in text to be referenced or linked to any editor command, macro, or any external tool activated by the editor. The activemark mechanism includes a parsing mechanism which creates an activemark automatically when the document is loaded in the editor, and thereafter as a user enters information into the document by parsing the changes to the document as they are committed. The activemarks are dynamic in that their meaning and behavior are updated in the context of any external tool which is activated by the editor.