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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: M CAHILL who wrote (1660)	7/8/1999 12:05:00 PM
From: -	Respond to of 18137

<re: IRA Trading> M Cahill, Yes, it's OK to short-term trade in and out of positions in your IRA, including intraday to your heart's content (staying within the IRA rules - no margin etc. per previous post). However, you have to be careful not to violate the buying-power rule, some brokers (Datek, Schwab seem to do well) enforce that better than others. With some web brokers (and even Schwab) you can exceed buying power (cash value of acct) if you don't watch it, then you'll get a call and have to deposit funds, which can really complicate things in a tax-deferred account. They may also punish you by restricting your trading activities in that account for a while. I don't think it's "illegal" per se, but it could cause you problems down the road, tax-wise... might want to consider a different broker, Schwab and Datek seem good for this (I've used Schwab, someone else posted positive experience with Datek). Good trading, -Steve

To: M CAHILL who wrote (1660)	7/8/1999 10:40:00 PM
From: Dominick	Read Replies (1) \| Respond to of 18137

MCAHILL: Day trading IRA accounts depends who the broker. Some say OK others say it's illegal. None can give me the specific regulation stating pro or con. Money Managers trade pensions and IRAs. Any mistake made in your account by you should be classified as an error for NASD purposes,(I believe that's a special account). You must notify your broker if your aware of your error so they can correct it immediately. Some brokers have programs that prevents you from making these kind of errors. Bottom line, you are responsible for your account. Here's an example that happened to me. I SOLD 1000 shares when I wanted to BUY 1000 shares. The stock went up 1 point. I quickly covered and notified my broker. It went into their error account and the mistake was cleared by charging me commissions of $500 to buy and $500 to sell to make up for the $1,000 loss. Whenever I had any gains they gave me free trades until I was even. As I said more brokers are implementing programs to prevent the above. Dominick