Can I use roth IRA for day trading ? Or short term trading?

2

20092009

Someone told me "investment position can only be changed once every 12 months in roth IRA", I don't really know what it mean.

Also, can I claim capital loss on tax return form if I make bad investment in roth IRA?

Thank you very much!
 
Quote from 20092009:

Someone told me "investment position can only be changed once every 12 months in roth IRA", I don't really know what it mean.

Depends on what you are trading. USA - You can trade futures as much as you want in an IRA. But it must be established through a trust such as Millennium Trust Company - many brokers know this...

Also, can I claim capital loss on tax return form if I make bad investment in roth IRA?

Assuming you are not thinking some complex, non-obvious scenario --> Your profits are not taxed, but your losses are not deductible
 
An IRA is self-directed, which means you can trade as often as you want.
Yes, you can use an IRA to day trade, but different firms have limitations. IB is one firm that allows the SEC defined version of daytrading if you have $25K equity. Other firms will make you wait for settled cash from previous trades.
Watch your commissions also--not a deduction in an IRA like they are in a taxable account.

http://www.finra.org/Investors/SmartInvesting/AdvancedInvesting/DayTrading/p005906

http://www.cool-trade.com/education/howtochooseabroker.asp?server=195
 
Quote from daytrader117:

An IRA is self-directed, which means you can trade as often as you want. Yes, you can use an IRA to day trade, but different firms have limitations. IB is one firm that allows the SEC defined version of daytrading if you have $25K equity.

I think this only applies to stocks, not futures (and I assume, not forex). Futures trading is entirely the same in or out of an IRA, once your account is activated...
 
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