Financial freedom is a dream that many people in the United States share. Being free from the day to day whims of a distant boss or clients that are constantly changing their minds and their demands is a very desirable state to be in. The trick is how to get there. There is value in being frugal and saving your money, but that can only get you so far. You need to be able to earn more money.
That is what day trading and investing can do for you. And the be the best trader or investor you can be, you want to know how to pick the right tools. Capital One Investing can be the right tool for you, depending on what kind of investor you want to be. Do you you want to be a high frequency day trader? Or do you want to be a casual investor, building a base of savings that will grow and provide passive income in your later years.
Capital One Investing is well-suited for the casual investor. There is little that a day trader can accomplish on its trading system. The commissions are too high and the infrastructure does not lend itself to high frequency trading. The platform is limited to stocks, mutual funds, options and ETFs. Forex trading is not happening on Cap One.
The Capital One bank bought ShareBuilder in 2012 and has transformed it into an investing service that works for casual investors, looking to pick the right mutual fund. There is a lot of looking for a portfolio that you can set and forget. A digital tool on Cap One, called Fund Evaluator, allows investors to find the best fund for their needs. It is a far cry from the pressure-packed world of day trading.
Day trading is all about the hunt for volatility. The more stocks are fluctuating, the better it is for the traders that can quickly recognize trends and jump on the opportunities. There is not much more to it. The strategies and techniques to do it profitably can get complex, but the basic tenet is to find a hot stock and ride it for the exact right amount of time.
For beginning day traders, it helps to have a paper trading option, where you can trade virtual currency and make risky moves that really help you build your skills. There is no learning and growing from never failing. But you want to fail in a productive way that allows you to keep as much money as possible. That is easier to do with a virtual, paper trading program. That is not a strong suit for Capital One Investing.
For the office jockey that wants to take some control over their 401K and get rid of pesky broker fees, Capital One Investing can be a good alternative. But if you are looking to really get good at day trading and become financially independent faster than you could imagine, Cap One is probably not the place.