Trade short term mutual funds instead of stocks and options?

Given the current market volatility-would'nt it be more profitable to trade short term, no fee, mtual funds as opposed to stocks and options for steady income? Mutual funds that allow you to go in and out every 30 days without penalties. There are lots of them and the markets keep going down.

If you want to do this, & if you can find mutual funds that will let you WHY NOT?? However if your maket timing skills are so great, I tend to wonder why you are not doing this already with ETFs??

Market timing is very tricky business. You have to be right twice. You have to know when to get in & then when to get back out again. If you wait for the market to go down, and then get out, all you are doing is locking in your losses. Then you wait for the market to go up for a few days, and then get in. Now you've missed out on a few days gains.

Market timers increase their risk, while lowering their returns. It is really the worst of both worlds.

Personally I would rather take advantage of a down market, and buy my mutual funds and/or stocks at a discount.

Not necessarily. Mutual funds can be a good alternative to individual stocks in many circumstances. However, what advantage do you see that gives them an advantage during volatile markets?

Since funds usually include many companies, they are more likely to move in tandem with the overall market unless you're in some highly specialized niche fund. A well-chosen stock may decline less or even go up when the market is going down. For example, I own an oil drilling stock that is up 60% since March. Oil prices have been going up and earnings are strong, so the stock has gone up even as the overall market seesaws up and down.

You can also buy put options on stocks that you think will go down. You can't do that with a fund except for a few specialized "bear market" funds.

Funds actually come with one big disadvantage if you're trying to play volatility (which I don't recommend, by the way - most people who try to time the markets get burned). Funds are normally priced only once a day. Prices of stocks and options change continuously all day depending on demand for them.

In my opinion, buying mutual funds is not the best idea, because 80% of them dont even beat the S&P 500...

**Listen, do a little research on your own, a invest your protfolio in 3 to 5 different stocks and see them rise...I currently have in my portfolio MCO, CHS, EPEX, and MOT

Good luck!

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