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Hello, new to the game and i have a question..

I have been led to believe that a IRA can be invested in individual securities, and then can be managed by you personally like any stock portfolio.

I really can't understand how this would work...

An individual is allowed a 2000 dollar contribution yearly, so say I buy 2000 of anything, ORCL and designate the fund as an IRA. I can understand that leaving that be, or say buying 2000 more next year works, but how can you actively trade within an IRA?
Because, say in a year, my initial contribution is now worth 4000, but I want to add another stock, so I sell 3000 worth of ORCL and buy INTC, and then in addition I contribute my annual 2000. Doesn't that add up to a 5000 dollar contribution?
thanks for your time, and sorry if this is a silly question
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