IRAs -- New Rules
You wrote:
Starting sometime in Sept., same day trading will be no longer allowed and the "trade date plus three day settlement" rule will be applied to cash accounts.
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The 3-days to settle for reuse of the cash has always been the case at the brokerage where my IRAs are, but I can daytrade up to the amount of cleared cash in the account each morning. If no same-day roundtrips becomes the rule (and I believe it will as I have heard they do not like daytrading in IRAs as this was not the intent for which these accounts were originally created; IMO what they really don't like is us making so much tax-deferred or tax-free income!) it will severely impact anyone (like me) daytrading their IRAs.
Bad news can happen at any time, and I would be loath to put on a large trade in an IRA when I could not sell it again the same day -- another 9/11-type incident could cost my account thousands of dollars in minutes.
I would have to put on several small trades over several days to build a position and protect my right to sell most of it. Of course, if you are trading on a /trade commission schedule (as my IRAs are), this could be prohibitively expensive, which I'm sure the brokerages would like. If the rule does pass, I will have to move my IRAs to brokerages with /share commissions and stagger many small buys over several days to build a large position while still protecting my right to sell most of it at the drop of a hat.
Newly
AI
