Say you sold something during trading hours today. Only those
funds take 3 days to "settle". You are free to do what you want
with any other funds that are already settled.
For example, I sold my SSO per the SPY sell signal at the open
this morning, Wednesday. Let's call Wednesday trading day zero.
Those funds are not settled until my broker does their settlements
during the after hours between trading day 2 (Friday) and trading
day 3 (Monday). That means technically I should wait until Monday's
open, the first time my funds will be settled during regular
trading hours, to consider using these funds for a purchase.
However, I will use them as early as the close of trading day 2,
Friday. When I hit the "Buy" button, I get a warning that I am
purchasing with unsettled funds (assuming I don't have other
settled funds available) and do I want to proceed anyway. I go
ahead and over ride the warning which just means I can't change my
mind and sell what I just bought in the after hours between trading
day 2 and 3, which I never do anyway.
So you can jump the gun by one day if you purchase with
unsettled funds at the close of trading day 2. That's the way it
works on my platform anyway.
If you want you can buy with unsettled funds on day 1, but if
you do you can't sell until the open of trading day 3. I personally
would never do that.
Others have posted on this forum that Sink or Swim has some type
of margin IRA (?) that makes sold funds available immediately.
You would only have the settled funds problem if you were
trading greater then 50% of your account i.e. if you traded say 20%
or 30%, well then you still have 80% or 70% of your funds left for
a new trade right away. Again for the guys trading their
whole trading accounts, then yes this would be a problem, but that
is NOT PRUDENT money management.
Now yes if you accidentally bought and sold that could be an
issue, but that's on you, and realize that I made this system
for people to use for their trading accounts and to trade the
S&P 500 in a systematic methodical way, it was not made for
restrictive accounts. However I'd say in > 99% of the
trades, this would not be an issue at all.
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If trading SPY system using IRA account, can you sell in the morning and buy in again after the close if you are using 50% of the money?
Posted by gram on 15th of Jun 2011 at 05:17 pm
Gram, Say you sold something during
Posted by dougmil on 15th of Jun 2011 at 07:16 pm
Gram,
Say you sold something during trading hours today. Only those funds take 3 days to "settle". You are free to do what you want with any other funds that are already settled.
For example, I sold my SSO per the SPY sell signal at the open this morning, Wednesday. Let's call Wednesday trading day zero. Those funds are not settled until my broker does their settlements during the after hours between trading day 2 (Friday) and trading day 3 (Monday). That means technically I should wait until Monday's open, the first time my funds will be settled during regular trading hours, to consider using these funds for a purchase. However, I will use them as early as the close of trading day 2, Friday. When I hit the "Buy" button, I get a warning that I am purchasing with unsettled funds (assuming I don't have other settled funds available) and do I want to proceed anyway. I go ahead and over ride the warning which just means I can't change my mind and sell what I just bought in the after hours between trading day 2 and 3, which I never do anyway.
So you can jump the gun by one day if you purchase with unsettled funds at the close of trading day 2. That's the way it works on my platform anyway.
If you want you can buy with unsettled funds on day 1, but if you do you can't sell until the open of trading day 3. I personally would never do that.
Others have posted on this forum that Sink or Swim has some type of margin IRA (?) that makes sold funds available immediately.
Doug
again this has been covered,
Posted by matt on 15th of Jun 2011 at 07:51 pm
again this has been covered, here's a prior thread
http://breakpointtrades.com/blog/post/156094/
You would only have the settled funds problem if you were trading greater then 50% of your account i.e. if you traded say 20% or 30%, well then you still have 80% or 70% of your funds left for a new trade right away. Again for the guys trading their whole trading accounts, then yes this would be a problem, but that is NOT PRUDENT money management.
Now yes if you accidentally bought and sold that could be an issue, but that's on you, and realize that I made this system for people to use for their trading accounts and to trade the S&P 500 in a systematic methodical way, it was not made for restrictive accounts. However I'd say in > 99% of the trades, this would not be an issue at all.