Rules of 401k. Can you short sell? Buy and sell ETFs? What are the penalities that are applied to 401k with regards buy and sell?

Lawd have mercy, even if you could, would you seriously short sell with your 401k? Seriously Clark?

Short selling is limited to covered calls and cash secured puts. Short selling equities is verboten. ETFs are fair game. I’m not sure what you are getting at WRT penalties, the only costs are regular trading commissions.

yeah I didnt mean short sell. I was trying to ask if you purchase a stock/etf and basically do day trades. Didnt know if the stock in 401k had to be held with a minimum duration.

that’s the only place to do it. Option ETFs, while underperforming the market, have more otherwise taxable transactions.

but I wouldn’t do it until retirement when I needed the cash flow.

You can’t day-trade with our Fidelity Brokerage Link. No matter what time of day you buy a stock, the deal doesn’t close until 4pm. And then add 2 calendar days before you can sell it. So you an week-trade 🥸.

But you can day trade with Robinhood. And it’s free.

ahh ok thanks

Well....assuming they have the liquidity to cover your GME trades 😁

More accurately, RH doesn't charge you to place trades. But it does sell your order information to other entities like Citadel (payment for order flow), so maybe not entirely "free." And I've heard that sometimes RH won't let you purchase a particular stock -- only sell.

A5S

Yep, nothing is free. You pay them with a less efficient fill. Sometimes no problem. other times big deal. Never use a market order with RH.