Hajimow. Live in the world you live in. You can't change it. You may not like the rules, but you will follow them or be penalized.
Buyers of stocks aren't required to even have the money in the account for 3 days. So after you sell a stock you have to wait 3 days to use the proceeds.
He can't grasp the concept that when he buys stock the money is immediately taken out to send to the seller. Under the rules it can take as long as 3 days for his former money to be credited to the sellers account. etc.etc.etc both ways. No one is EVER entitled to instant gratification. Unless you are in the missionary position doing hip thrusts that is. IMHO
Hajimow, Look into Interactive Brokers for your IRA. I believe you can setup your IRA account with them to get around the antiquated 3 day settlement rule.....
Just try to buy real estate and sell it 5 minutes later with the new cash in hand (not just a deal where you agree to not buy it and someone who wants it pays you, but you actually buy it and close it)! 3 days would be crazy good in real estate! For that matter just about anything that can be large amounts of money - there is always someone who is protecting their interests - in this case the brokers. Why can't you get paid every hour that you work for most jobs (I mean getting cash/a check each hour)? Demand that of your boss and see what they say. You did the work - why do you have to wait for the paycheck? It's not even that it will bounce or anything. JJacksET4
I always wonder why there are all these laws and we have to obey them. Maybe the Fidelity rep can explain that one to me?
Search for: settlement AND ira in this forum. There are a number of threads on this topic. Interactive Brokers seems to be the only one to offer their IRA clients the opportunity to trade around the 3 day rule. Best I can gather from reading the forum and given IB's ability to offer an alternative for several years now is that the rule allows brokers the OPTION to require a 3 day settlement. I'm not sure why, but apparently most brokers take this option even though it is a hassle to some of their customers. If more people moved to IB and told their broker why, perhaps more brokers would change their ways. My IRA accounts are still with Fidelity, but a friend has moved to IB and I'm thinking of switching to rid myself of this restriction.
the answer is because in a cash account you do not have the settled funds to purchase the stock. you are using the brokerage to pay for it. so doing it 3-4x over and over in a day you are risking/tying up more of the brokerages money prior to your cash settling. This is why they have margin accounts, not everyone is approved for margin trading for the above reasons, the brokerage will ask you income, asset, liquid asset information and make a determination of your eligibility. If your brokerage approves you for the margin account, you can do what you are looking to do.