Wednesday, April 18, 2007

IRA game: the constraints

  • free trades are allowed during first 45 days since funds get rolled over from my other institution; means there may be about 32 trading days
  • need to space trades to avoid day trader qualification (4 in- and out trades of same stock in any 5 consecutive trading days) that will lock lots for 90 days, as the amount of the account is WAY below $25000 margin requirement; this means 3 days in a row purchases should be performed in the morning of one day but sales can occur the next day only
  • will still avoid penny stocks; will try to select from stocks I'm a little familiar with
  • will only be able to place trades in the morning or in the evening after market close, so use of limit trades would be used to close a position, and probably sometimes to open one as well
  • will not be able to track the stock price during the day
  • short sales are still a new thing for me, so probably out of the question
  • this is not a marginable account
  • comments to this blog are moderated
Update: money from my Traditional IRA has not been deposited into broker's account yet, so no trades today, another day of idle research.

0 Comments:

Post a Comment

<< Home