The Retirement Trader
I just thought of something a few days ago: What if I use my Roth IRA at my online discount broker to trade in and out of volatile "good" stocks? Using my experience at Marketocracy, I could set limit orders to cover trading costs with comfortable profit margins, and hold a minimum amount of each stock to capture sudden, unforeseeable upside (and then take the uninvested portion and put it to work elsewhere).
Does anyone know any reason not to do this? Is it illegal? Is there any mathematical unfeasability with $7 commissions and trades of around $400-$600?
As my faithful readers know, I've been following E*Trade (ETFC) and investing in it as it dropped to around $4, bounced back to $5.50 or so, fell back to about $4, then bounced up to about $5.25 as of today's close. If I'd had limit buy orders at $4.10 or so, and limit sell orders around $5.15, and no tax liability, would that not have been great?