Advice for kid out of college....CFA or WHAT?

[newwurldmn]

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.

It should be obvious to you why you would want to further your education in some of the most basic elements of finance.

If you don't like financial statement analysis, you should reconsider your interest in finance and instead pursue a career in blackjack or poker as that's the aspect of the field that interests you.

 

[Soon2Bgreat]

Speaking of, it's that time of the year again.

Aside from the basic accounting and finance knowledge - the CFA also has a way of making you appreciate Memorial Day wknd.

If you're really concerned, do L1 and see how you feel about it, L2 is much heavier on accounting than L1.

 

[nemesis45]

so CFA helps for what positions exactly? sell side firms? curious
why are you cribbing about level 1 CFA ...

 

[elitetrader15]

any retard can trade,

it's the style of investment or trading.


for CFA, you need for pension funds who actually read the financial statements of companies and read the bond prospectus.

accounting is important in analyzing companies for real investments. to get intrinsic values of companies..

if you just hustling and trading. why do yo u need CFA, CMT for?

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

 

[elitetrader15]

for large institutional investors, they do financial statement analysis and read the investment prospectus and due deligence BEFORE giving any any money or writing a check. that is the real word.

big money don't just buy a stock without interviewing the CEO etc. and due diligence.

any retard can trade,

it's the style of investment or trading.


for CFA, you need for pension funds who actually read the financial statements of companies and read the bond prospectus.

accounting is important in analyzing companies for real investments. to get intrinsic values of companies..

if you just hustling and trading. why do yo u need CFA, CMT for?

 

[elitetrader15]

90% of the financial statements in some exchanges are non-profit companies.. welfare companies. always asking the market for money.

for large institutional investors, they do financial statement analysis and read the investment prospectus and due deligence BEFORE giving any any money or writing a check. that is the real word.

big money don't just buy a stock without interviewing the CEO etc. and due diligence.

 

[elitetrader15]

why the hell would you want to trade your own money?

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

 

[heavenskrow]

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.

Hey thanks man I really appreciate this advice.
I guess when I fail this test this saturday....I will have to sign up again....and actually try to learn accounting to pass even though it is full fledged torture and I'd rather master TA.....cry.
Reality sucks =[ Welcome to corporate world, working up the ladder, by first passing CFA level one.

 

[xandman]

Hey thanks man I really appreciate this advice.
I guess when I fail this test this saturday....I will have to sign up again....and actually try to learn accounting to pass even though it is full fledged torture and I'd rather master TA.....cry.
Reality sucks =[ Welcome to corporate world, working up the ladder, by first passing CFA level one.

Really, man. It's like your saying you would rather study Physical Education than go to Med School.

I have 2 dear brothers who went to college for Physical Education. I wan't to kill you, too. : )

 

[Daal]

Why you want to work for a bank? The hours are terrible and the pay (compared to trading your own $) is not great (for entry level anyway). I know quite a few folks who started with small capital bases ($10K) and run that up to hundreds of thousands. There is risk of ruin of course but at least if you make it you make your own hours and won't have to sacrifice your weekends to make someone else rich.
If you know you can't trade through, then by all means get that CFA and go work those 70-80 hours a week