I don't understand above part, are you saying that CFA teaches one make his investment decision based less on technical analysis and more on forcasting markets and general economy?
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Does the CFA Open Doors?
- Thread starter tanp21
- Start date
I don't understand above part, are you saying that CFA teaches one make his investment decision based less on technical analysis and more on forcasting markets and general economy?
I am taking the level III in June as well. I chose to do it as a backup to my trading career if it flops. (Some proprietary firms do like to see a CFA designation. It depends on their strategies.)
From what I can tell, the CFA designation plus even a little pertinent experience will make you a shoe-in for plenty of analyst I positions and potentially some analyst II position. This may not sound like much, but if you're scraping by as a beginning trader and blow out, the $60K or $70K (or more) you can make in those positions is a nice alternative to starving.
Getting the charter doesn't make sense if a) you have a backup plan outside of finance and b) you know that no firm you'd like to work at likes the designation.
From what I can tell, the CFA designation plus even a little pertinent experience will make you a shoe-in for plenty of analyst I positions and potentially some analyst II position. This may not sound like much, but if you're scraping by as a beginning trader and blow out, the $60K or $70K (or more) you can make in those positions is a nice alternative to starving.
Getting the charter doesn't make sense if a) you have a backup plan outside of finance and b) you know that no firm you'd like to work at likes the designation.
Quote from JSL_Capital:
I'm writing the CFA level III exam in June, and I am quite disappointed with the quality of the materials I've read so far for this level. I've learned more about alternative investments/strategies reading other books than following the CFA curriculum. The program as a whole will prepare you to become a decent financial analyst/mutual fund portfolio manager (whose major challenge would be to outperform their benchmarks), but it can be a huge distraction to your trading endeavors because you're constantly forced to read about how the market is efficient, and that technical analysis is bs blah blah. I'm doing it because I've already been working on it for 2+ years and it doesn't hurt to have the designation but I have to say that as I trade for a living, CFA program isn't useful for my daily work routine.
The only designation, that has direct relation and is useful for trading is FRM
http://www.garp.com/frmexam/examprep.asp
May be 80% of the study material can be used and is necessary to know also for independent trader working in any time frame. It is quantitatively oriented and needs good background in statistics to start.
CFA, as has been already mention, is for financial analyst who uses pure fundamental analysis. It's overloaded with accounting (how to read financial statements that are paintings of reality) and ethics is somewhere about 20% in each level.
CFA or CAIA are good for CV in seeking a job of a slave in corporate mess. For independent trader or hedge fund trader they are useless in daily business. But as any education, e.g. biology, physics it doesn't hurt.
CAIA wont help you in intra-day trading, but readings are actually very interesting, and give you great ideas on where to put money to work once you are ready to do so.
CFA is just too long, and too damn boring, but if you want to make a transition to investment management its a must.
CFA is just too long, and too damn boring, but if you want to make a transition to investment management its a must.
Quote from Nana Trader:
Sure CFA is more recognized than CAIA, they don't seriously do any good to your career if you can't trade, correct me if i'm missing somthing here?
CAIA is not competing with the CFA, therefore the recognition factor doesnt exist in my opinion.
If you want to be involved with Hedge Funds,FOFs, and other alternative investments, you are better off with CAIA.
Quote from BlueHorseshoe:
Copernicus is clueless on the matter.
I just looked at the CAIA. I think it makes sense and would agree with Copernicus that is has potential value. I don't know this first hand mind you, but it is logical that HF and others would want to broaden their investment options. Ie. spread beyond the typical stock market arena. This appears to be the point behind the CAIA.
I'm sure the CFA is more recognized, but you may not want those jobs. And HF's may have those people in droves.
I am going for my 2nd time attempting my level 1 exam this year. I learn some basic theories about how the financial world works. However, those theories are not that useful in a practical basis. The market is not so efficient and it would not be wise to ignore technical analysis.
Quote from JSL_Capital:
I'm writing the CFA level III exam in June, and I am quite disappointed with the quality of the materials I've read so far for this level. I've learned more about alternative investments/strategies reading other books than following the CFA curriculum. The program as a whole will prepare you to become a decent financial analyst/mutual fund portfolio manager (whose major challenge would be to outperform their benchmarks), but it can be a huge distraction to your trading endeavors because you're constantly forced to read about how the market is efficient, and that technical analysis is bs blah blah. I'm doing it because I've already been working on it for 2+ years and it doesn't hurt to have the designation but I have to say that as I trade for a living, CFA program isn't useful for my daily work routine.