Trading the same mutual fund over and over?
Is there something wrong with buying and selling the same mutual fund over and over again to take profits? I just ordered a mutual fund at the start of this week and it made so money riding the rally of Wall st this week. Thinking of selling it at the end of today, then buying it again when the market goes back down, for the same price and doing it again. My question is, is this allowed? The fund has no load or transaction fee with my broker (Schwab). Will my account get flagged or something?
I know day trading with STOCKS is ok, but what about mutual funds?
- Go with the flowLv 78 years agoFavorite Answer
Are you 100% no load?
There might be a fee if you don't hold it for at least 3 months?
I copied this from their site:
Schwab’s short-term redemption fee of $49.95 will be charged on redemption of funds purchased through Schwab’s Mutual Fund OneSource service (and certain other funds with no transaction fees) and held for 90 days or less. Schwab reserves the right to exempt certain funds from this fee, including Schwab Funds®, which may charge a separate redemption fee, and funds that accommodate short-term trading.
Adding: When you buy and sell they tell you the details.
READ next time.
- Anonymous6 years ago
You should try with Penny Stocks Trading (you can find more info here: http://pennystocks.toptips.org)/
Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share.
I've been subscribing to this PennyStock web site for about a year now and have loved the objective advice they give. He really does look for quality stocks and I've made some pretty nice profits on a lot of his suggestions. Being still fairly new to investing I have been dabbling a lot in penny stocks to try and grow my account. I may not have a big account, but it's a lot bigger than it was a year ago. On just one of Nathan's picks this year I managed to make my investment back ten-fold! Be careful! Penny stocks are notoriously risky but if you follow the right method the risk is almost 0. I suggest to invest only little money first and then reinvest the profits. This is the site I'm using: http://pennystocks.toptips.org/
- underexposed...Lv 78 years ago
they don't like that kind of thing...the Mutual Fund managers. Mutual funds are supposed to be long term holds.
What you want to use is ETF's which are like mutual funds as they represent several stocks of the same type but are designed to be tradeable...
when I first started trading 20 years ago I tried mutual funds and I wanted to do what you suggest. It ended up they froze my account because of it, saying I was beyond my risk profile...I dropped that company and never invested in Mutual funds again
- Anonymous8 years ago
No there is nothing wrong with doing that. It happens in all markets but you may not want too for the reasons outlined in the above answer. Try changing brokers if thats what you want to do.