Reader Questions Answered

VectorVest and Trading Forex in IRAs

Back in action after nearly a week off leading up to my 40th birthday!

It’s nice to see that the markets didn’t really do very much while I was away, which actually makes what I wrote about in my last post, Watching for a Market Explosion or Implosion, even more so. Now I’m stressing about getting my holiday shopping taken care of ASAP (don’t for get the The Trader’s Wish List). 🙁

I got a couple of quick questions while I was on break (along with several happy birthdays). The first was this:

Are you familiar with the market timing and analysis “system” used in/by VectorVest? If so, what are your thoughts about it as a research source?

I personally haven’t ever looked at VectorVest (coincidentally, one of the commercials was just running on CNBC). I encourage any reader of this post to share their views if they are or have used the service, however.

The other quick question was this:

Can you trade currency with a Roth IRA acct?

While you can certainly trade currency ETFs in an Individual Retirement Account (Roth or otherwise), actually trading spot forex, or even futures, is a harder thing because of their highly speculative nature. If you have your IRA account set up with a traditional broker or other financial institution then the answer is very likely to be negative. There are ways, however, to open IRA accounts which are less constrained (can invest in real estate, etc.). I forget the exact term for those accounts (self-directed IRA, or something like that).

By John

Author of The Essentials of Trading

Leave a Reply

Your email address will not be published. Required fields are marked *