"What we want to do is to make sure there is no short-term trading of those funds."

The strategy depends on finding funds that do not charge a fee for short-term trading.

While such a fee might well discourage short-term trading, it would not help ordinary investors.

Just how good a thing is short-term trading?

That is why many fund groups have policies saying they try to prohibit or restrict such short-term trading.

To deter short-term trading, a 1 percent redemption fee applies to shares held less than one year.

Fidelity said it generally does not comment on short-term trading.

To discourage short-term trading, the fund will levy a 1 percent fee on shares held for less than 90 days.

Niederhoffer has been attributed to employ an investment strategy known as short-term trading.

Some analysts think the stock, while still a good value, has climbed too much and may be overpriced for short-term trading.