But, again, financial planners discourage this strategy because you are chasing funds that are currently the hottest. A cousin of day trading is daily adjustment. Again, with easy account access, the temptation can be high to micromanage your retirement portfolio. That's still a bad idea, financial planners say. And I'm not those losers.
Financial planners realize many investors do have the urge to trade.
So, they suggest opening a trading account outside your retirement plan. CPA Ed Slott has a client who likes to day trade his retirement account. When the client's wife told Slott she was worried that her husband might trade away their retirement nest egg, the three sat down and found a solution. That kept his wife happy. These guys don't buy or sell a stock on a whim.