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Anxious Investors Day Trading With Retirement Accounts
Many brokerages impose 3-6 months holding period on mutual funds, at least those which are on no-transaction-fee platform.
Trading stocks, ETFs, and stock options are okay since one pays the transaction fee.
What trouble me is the idea of frequent trading will lead to better performance. This is no different from gambling and the end results are generally not pleasant.
Good link by Ted & agree with Sven that this sounds like gambling - as I think trying to predict short term market moves a fool's game. Some may disagree. Stats on the large % who never touch their holdings and also the meager amounts in 401ks pretty much in line with past figures I've seen. Both should raise eye-brows. Re trading & perhaps worth noting - one large MF house, T Rowe Price, recently softened their frequent trading regs from the old "one round-trip every 90 days" to a ban on repurchasing a fund you sold within 30 days. However - still monitor total trades and I don't know what the "magic number" is per year before a warning is given. Have never received one - must have tried their patience few times. (-:
Comments
Trading stocks, ETFs, and stock options are okay since one pays the transaction fee.
What trouble me is the idea of frequent trading will lead to better performance. This is no different from gambling and the end results are generally not pleasant.