I like to hear opinions about financial education and how it applies to an independent trader. A trader that is not managing OPM. Below are links from Level I and II from the CFA certification. By reading trough the PDF my opinion is that this type of knowledge will be of big help to a trader. I have avoided links for ethical and corporate finance studies as they are probably less important to an independent trader. What do you think? Is this knowledge important? More or less important than the usual suggested books like from Mark Douglas, TA books etc... Are there two different worlds in finance, one with skillful but generally financially uneducated traders using their technical skills like market movement knowledge, order flow, TA, perhaps intuition, guts, discipline etc.. and a second world with financially educated workers like money mangers, financial analysts, quants etc...? Is it possible that Jesse Livermore, Pit Bull and such are just mythical legends used to promise success without the need of learning the complex field of finance? [Scroll down to the Learning Outcomes for each document to see the type of knowledge needed] http://www.cfainstitute.org/CFA Program Study Session/2011_l1_ss02.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l1_ss03.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l1_ss04.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l1_ss05.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l1_ss06.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l1_ss13.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l1_ss14.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l1_ss15.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l1_ss16.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l1_ss17.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l1_ss18.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l2_ss03.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l2_ss04.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l2_ss11.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l2_ss12.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l2_ss13.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l2_ss14.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l2_ss15.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l2_ss16.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l2_ss17.pdf http://www.cfainstitute.org/CFA Program Study Session/2011_l2_ss18.pdf
I passed CFA L1 and am working on #2. (and in an MBA program at the moment) This knowledge is great, but doesn't help speculate on charts. That said, I think you are probably spot on concerning two groups of traders. The ones that feed money to the market (your first group), and the ones that actually make a living/paycheck (second group.) I've never personally met anyone who makes a living from group A. This 'info' helps you get into the second group. And maybe it helps keeps you out of obvious trouble if you plan on staying in group A.
I can sum up the benefits of education in this industry in the following lines: ........ ................... ............................. You get my drift! Stop wasting your time and go make some money