What SEC or otherwise rule says that you may not sell unsettled trades with IRA money?

Question

What if you want to sell to avoid losses? Does this mean you cannot use trailing stop losses to sell?

Answer 1

It is the rule that governs T+3. If an account is a cash account, trades may not occur within three days until settlement. You cannot day trade a cash account, it is simply impossible.

Margin accounts are not subject to this rule.

If you have a cash account IRA, the presumption is that you are a long term investor. You do not get to use trailing stops and so forth. You need to be a Benjamin Graham style investor, or get a margin account.

Answer 2

Hi. I've recently been suffering from anxiety which has lead to restrictions in my life. I am just getting over it but have been told that those of us who are let us say 'a little on the nervous side' are prone to become like this in middle age. This is certainly confirmed by the therapy group I attended. So getting older often brings up problems that have been submerged since childhood. It may be true that 'money isn't everything' but the lack of it can certainly make you feel more vulnerable. I once had the hope that something would change my life. I now feel that nothing will; that I am going to stay much the way that I am.

Answer 3

I dont remember the rule but i know that its part of SOX and its one of the basic rules.

ex: inside trading.

but i would suggest going to the SEC rules and regulations to investigate.