So I got my bachelors in finance from a non target last May. Ended up getting a job at an investment advisory firm doing bitchwork and currently underpaid. I signed up for the CFA level 1 last December mainly to get my foot in the door at a reputable investment firm and am set to take it in a few days.... I've been reading previous threads on ET how relevant CFA is for trading and I agree with most comments, its the "gold standard" in the industry but it really has no use in trading. One major thing I realized while studying for CFA level one is that accoutning is 20% of the exam.....and I HATE ACCOUNTING. I always felt to be a good trader/investor, I should work on my fundamental analysis more.... For example if I was short Enron based on a technical pattern I saw, I want to understand the fundamentals as to see if there is an actual valid reason to hold the position. But then again....I just hate it, and don't want to learn the "rules" of accounting. So basically my dilemma is... I hate the material the CFA has you learn ....I'd rather study TA and improving on trading. However CFA is still looked highly upon many of the positions(PM/analyst jobs) I want to land....As much as I want to land those types of jobs...I'd rather be trading independently. I feel like to get there though....I should start off with analyst, then PM, then trader. If I were to drop the CFA, what do I do to get a foot in the door? I heard CMT is a joke but I am very curious in getting it. For example Elliot wave is something I don't believe in atm, but need to fully understand it before I make a firm comment on it and for that CMT could be beneficial. My interest is TA/trading, but I also need to break in and start building up a bigger capital to trade comfortably. I have no idea how to get there though
+1 Some men put on a uniform, go off to war and come home without their limbs. This kid has to learn accounting. Sigh....
You already learned all the accounting you need in getting that finance degree. CFA level 1 i is less than 1/3 in knowledge content. 20% x 33%= 6.6% (less than is likely) of the content is for accounting. If that accounting seems daunting, you can't make it to CFA 3, probably not even 2. Or you can just put your money into moving average crossovers. Hey, I waste brain cells everyday by not indexing.
Yeah but I only "learned it" for the test, but then forgot everything. Only thing I know by heart is A=L+E lol. Do all you sucessful traders know how to read a balance sheet???Do you guys actually know the fundamentals of what you are trading? It seems like its got its use, but then again I feel like all that matters is buying vs selling. As far as certifications/more education though what would you recommend to get more trading knowledge/experience for a firm? I feel like the most knowledge I can gain from is just reading various books on trading, but then I won't have any certifications to show to prospective employers.
I'll teach you to trade for $10k . Only a fraction of your great investment in college Honestly though .... "there is no free pass" - Mark Haines If you like TA read some work by. Edwards and Magee Peter L Brandt
Well I've been trading for over 5 years. Learned A LOT. In fact I feel like the stuff I discovered and the track record, I could do pretty well with bigger capital. However just getting out of college, my capital is low. I want to get my foot in the door where I could build up my capital, and also get the experience....and for this I felt like CFA would be great. However accounting and ethics being 40% of the exam, it is really not teaching me much in regards to trading which I am more passionate about.
You're young and your passions are likely to change over time. Maybe TA doesn't work for you, maybe you want to use fundamental analysis for some long term retirement type trades, maybe some day you become a corp exec or a business owner, etc, etc. Accounting will help you in all of these cases. I don't understand the reluctance to re-learn, or your distaste for, financial accounting and reporting, esp. given your undergrad degree. If managerial and the fine details of cost accounting aren't your thing, that makes sense, but I don't think they are the the focus of CFA preps and tests.
It all depends on what your end goal is. Do you want to become a PM or Desk Trader at a respectable firm, or do you want to trade your own capital from home? If your goal is to just be a full time independent trader, then the CFA isn't going to help you much in terms of knowledge. But in order to land a decent job in the industry, the CFA will go along way. My unsolicited advice is to stick with the CFA and put yourself in the best opportunity to succeed career wise, even if that is not your long term goal. ET is full of traders who are under the assumption that if they can just find the right strategy or indicator then they can eventually make it big time and start their own hedge fund. But in reality, the majority of hedge fund managers make their bones working in the industry before breaking off on their own, and many of their partners or initial investors are met through work relationships. So knowing accounting won't help you be a better daytrader, but it will help you pass your CFA, and your CFA will help you land a better job that pays more and puts you in working contact with other either successful people or future successful people down the road.