Articles

401(k) retirement plans typically allow employees to submit a trade order which will be executed at the end of the day at the closing price of the particular fund. If order is entered afternoon during the trading day, then some plans may postpone the execution of the order to the next day, when it will be executed at the next day’s closing price.

This makes it much harder to trade 401k funds compared to stocks in a broker account where you can trade real time during the day. Regardless, some of us like the thril or the hope of controlling their destinity via frequent trades with hopes of beating the market. However, it is often said that these frequent traders actually underperform. This also increases the expenses for the underying funds and adversely effects others who are invested in these funds.
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