CFA - Is it Worthwhile?

Churn4Fun · Nov 11, 2006

After a year and a half as a prop trader, I'm considering possibly going to back to school or adding a designation (or 2) in order to land a shot at one of the larger hedge funds.

My question is.....Will having the CFA designation truly help my chances of landing that big interview? For the CFA's on the board, has passing the tests proven beneficial to your career?

Furthermore, has the studying and knowledge gain from taking the tests actually made you a better trader? Has it made your trading more profitable?

I'm confident I can make a decent living as a small-time trader.....but never the type of money I'd hope or like to make...I need to do something to jump start and improve my situation. Do you think a CFA is the answer?

MadBulgarian · Nov 11, 2006

Quote from Churn4Fun:

After a year and a half as a prop trader, I'm considering possibly going to back to school or adding a designation (or 2) in order to land a shot at one of the larger hedge funds.

My question is.....Will having the CFA designation truly help my chances of landing that big interview? For the CFA's on the board, has passing the tests proven beneficial to your career?

Furthermore, has the studying and knowledge gain from taking the tests actually made you a better trader? Has it made your trading more profitable?

I'm confident I can make a decent living as a small-time trader.....but never the type of money I'd hope or like to make...I need to do something to jump start and improve my situation. Do you think a CFA is the answer?

Alot of the answers you will get from ET members fit in one of these categories

A.) Prop shop owners/group mentors that try to persuade young guys into thinking that the only way is to flip shares around until you become consistent

B.) Traders that are envious that they dont have the credentials like these guys to play with the big money http://www.baincapital.com/team.asp?b=3&l=11

I suggest you read over these bios and also go to other websites and you will see a reoccurring pattern of credentials that the big money shufflers have in common

Churn4Fun · Nov 11, 2006

Quote from MadBulgarian:

Alot of the answers you will get from ET members fit in one of these categories

A.) Prop shop owners/group mentors that try to persuade young guys into thinking that the only way is to flip shares around until you become consistent

B.) Traders that are envious that they dont have the credentials like these guys to play with the big money http://www.baincapital.com/team.asp?b=3&l=11

I suggest you read over these bios and also go to other websites and you will see a reoccurring pattern of credentials that the big money shufflers have in common

Good Post MadBulgarian

I think I already fit the profile of "Category A"....Used the old trader adage "churn until you learn" (hence my tag), until i became consistent. My goal, as i'm sure most here w/ any ambition, is to go beyond where I'm at. If it takes a CFA, MBA, or any other designation to get my foot in the door, so be it.

Batman28 · Nov 11, 2006

Quote from MadBulgarian:

Alot of the answers you will get from ET members fit in one of these categories

A.) Prop shop owners/group mentors that try to persuade young guys into thinking that the only way is to flip shares around until you become consistent

B.) Traders that are envious that they dont have the credentials like these guys to play with the big money http://www.baincapital.com/team.asp?b=3&l=11

I suggest you read over these bios and also go to other websites and you will see a reoccurring pattern of credentials that the big money shufflers have in common

thanks alot for that link.. they have a amazing team wow

rosy2 · Nov 11, 2006

Quote from MadBulgarian:

A.) Prop shop owners/group mentors that try to persuade young guys into thinking that the only way is to flip shares around until you become consistent

B.) Traders that are envious that they dont have the credentials like these guys to play with the big money http://www.baincapital.com/team.asp?b=3&l=11

IMO, category A guys give their money to category B guys.

Getting a CFA or other respected credentials does not hurt.

MadBulgarian · Nov 11, 2006

Quote from Churn4Fun:

My goal, as i'm sure most here w/ any ambition, is to go beyond where I'm at. If it takes a CFA, MBA, or any other designation to get my foot in the door, so be it.

[/B]

If you're somewhere in your mid twenties and can afford and get into a good MBA program I would definitely choose that over trading at a non salaried prop shop especially if your just scalping nasdaq or listed stocks. Later down the road you can always go and trade prop again (when the vix increases), but you will not always be able to get into a top MBA program.

IMO its foolish to waste your younger years day trading right now. I've been trading prop for a little over a year now and a few guys in my group have been trading for 10 years and they're having a difficult time making money lately and starting to fade out and pursue other ventures.

timmyz · Nov 11, 2006

two things:

1) whether a CFA will help you completely depends on the rest of you.

2) the #1 reason why the big name PE firms have the success that they have is because people who are not in them give them so much respect.

MadBulgarian · Nov 12, 2006

Quote from timmyz:

two things:

1) whether a CFA will help you completely depends on the rest of you.

2) the #1 reason why the big name PE firms have the success that they have is because people who are not in them give them so much respect.

1.) That could be said about many things in life. CFA is a well respected credential in the investment management community

2.) In order to continually perform as they have, they need to have a great team of investment professionals with the brain capacity to know where to allocate capital that will continue to bring an attractable ROI to thier clients so this causes them to manage more money as investors start chasing the funds that are performing so well.

Nana Trader · Nov 12, 2006

Quote from rosy2:

Getting a CFA or other respected credentials does not hurt.

You must have lot of free time. It really hurts to study 4-6 hours a day for at least 2 years

Churn4Fun · Nov 12, 2006

Quote from Nana Trader:

You must have lot of free time. It really hurts to study 4-6 hours a day for at least 2 years

You post really sums up the essence of my question.....Is it worthwhile in relation to the amount of work and time required to receive it.

It would be a shame and a devote valuable time to study (500 hours or more total), pay the test fees, and endure the stress and pressure of having to pass only to find out the designation isn't worth the paper it's printed on.