Becoming a CTA Takes Time and a Savings Nest Egg
Money makes the world talk, and commodities trading advisors play a key role in that conversation. According to the National Futures Association, a CTA is defined as an individual or firm that directly or indirectly advises clients on buying or selling futures or options contracts. As professional money managers, CTAs must be registered with the Commodities Futures Trading Commission.
There's no formal education process to become a CTA. Although it may be helpful to first start at a trading firm prior to beginning a CTA career, it doesn't guarantee a successful career nor is it required by federal regulations. Many CTAs have had little to no formal training and still proven themselves successful. However, working first for a firm can help you decide if you really have a knack for trading futures.
Although a formal education process isn't required, credentials are. Before applying to the NFA, you must first pass the Series 3 exam that measures your understanding of the makeup and regulations of the futures market.
Many planning to take the Series 3 test first practice with online study packages that provide sample tests as well as test-taking strategies. Having an idea of what to expect can keep you from being blindsided on test day.
First you must ask yourself some important questions. Are you really ready to become a CTA? How successful were you in investing in the stock market, and was this success proven over a variety of market conditions? Some success is simply market luck. Real talent can sustain itself over many market conditions.
Also, consider your finances and personal situation. Starting an investment business is risky, and timing is everything. Unless your CTA firm has a substantial amount under management, you can pretty much count on not seeing a paycheck the first year or two. Even managing a $1,000,000 account with a 2 percent management fee would only earn you $20,000 a year, or $1,600 a month.
Plus, you'll also face trading costs, rent, technology costs and fees for traditional support. Establishing a successful CTA career takes time. Be sure you have money in the bank before you begin.
If you have a natural eye for investment, however, you should do pretty well in the long run. CTAs are a vital to the marketplace. Learning to spot the changes in the industry before they happen is the key to a sustainable and lasting career. - 23221
There's no formal education process to become a CTA. Although it may be helpful to first start at a trading firm prior to beginning a CTA career, it doesn't guarantee a successful career nor is it required by federal regulations. Many CTAs have had little to no formal training and still proven themselves successful. However, working first for a firm can help you decide if you really have a knack for trading futures.
Although a formal education process isn't required, credentials are. Before applying to the NFA, you must first pass the Series 3 exam that measures your understanding of the makeup and regulations of the futures market.
Many planning to take the Series 3 test first practice with online study packages that provide sample tests as well as test-taking strategies. Having an idea of what to expect can keep you from being blindsided on test day.
First you must ask yourself some important questions. Are you really ready to become a CTA? How successful were you in investing in the stock market, and was this success proven over a variety of market conditions? Some success is simply market luck. Real talent can sustain itself over many market conditions.
Also, consider your finances and personal situation. Starting an investment business is risky, and timing is everything. Unless your CTA firm has a substantial amount under management, you can pretty much count on not seeing a paycheck the first year or two. Even managing a $1,000,000 account with a 2 percent management fee would only earn you $20,000 a year, or $1,600 a month.
Plus, you'll also face trading costs, rent, technology costs and fees for traditional support. Establishing a successful CTA career takes time. Be sure you have money in the bank before you begin.
If you have a natural eye for investment, however, you should do pretty well in the long run. CTAs are a vital to the marketplace. Learning to spot the changes in the industry before they happen is the key to a sustainable and lasting career. - 23221
About the Author:
If you're interested in learning more about the profession would like to become a CTA the author recommends going here to learn more.
posted by X - Men @ 5:05 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home