Userque,
This is interesting to explore. I knew it was not the usual day trading that requires a special software, but I think a pattern recognition system in order to scalp the market. Don't you think that this can be done in a recognized upside, without using margin, but by using sufficient funds in an IRA. Perhaps 1/3 of your available cash. Example, surprises aside; if a bounce is expected today and the major indexes open in a gap-up, you can weigh the possibilities of TNA coming down a bit (you buy in an intraday low, and you place a limit order to sell at a price where the daily patterns allow to get out within the probable range and reasonable 1% or 2% gain and then out).
This is sort of trading is based on probabilities. Yes, you have to keep watching and ready to pull the trigger. True, it is a ball park pattern recognition trading without using software, but watching the market with a real-time daily chart of TNA - "as flying by the seat of your pants style"; but based on the most likely probability that the bounce is occurring. Of course, you have to calculate the amount of cash that clears the fees and gives a profit. The bounce should be sustainable at least during the morning so that you can clear the deck, make a profit, and get out. Not saying that one should risk all the funds, but part of the funds; thereby, you can build the IRA over time, leaving the bulk of the funds in a more conservative mode, which may include Major indexes, stocks and bonds. All bets are off, if global issues or other unexpected surprise interferes with your assumption of the bounce being the more probable result. Please give me your opinion. Tia.
Even so, more correctly than I previously suggested, I believe it only refers to margin accounts, which IRA's aren't, typically. What I was actually thinking about when I mentioned it was 'Free Riding!'
