Fund Trading Restrictions

The system is fundamentally corrupt. Mr Strong knew that the best way to make money in his funds was to trade them - but he did not want us to trade.

Restrictions are not well specified - there always seems to be an escape clause that allows the fund company to do whatever it wants

Consequences can be drastic, such as the closing of your account by the broker

Psychological consequences can be costly - as you do not take an obvious sell because of fear of being banned.  Then when you do take it, you have lost money and you are going to be banned anyway.

Brokerage companies are not interested in allowing you to make money - they only want their rake-off

Fund managers, with a few exceptions, simply do not know how to time.

Bad attitude on the part of money managers - some quotes

Stocks always go up over time, so why should I short now?

The market is like a roller coaster - the only people who get hurt are the ones that jump off.

The disadvantage of this method (ranking mutual funds monthly, and picking the top fund) is that you have to access the accounts on a monthly basis.

Towneley Market Timing Study, "A study commissioned byTowneley Capital Management and conducted by Professor H. Nejat Seyhun, University of Michigan."

Is it possible to be too cynical about these guys?