Becoming a CTA Takes Time and a Savings Nest Egg
Money is the bloodstream of the world, and commodities trading advisors play an important role in keeping the money flowing. According to the National Futures Association, a CTA is any individual or firm that directly or indirectly advises clients on the trading of futures or options contracts. CTAs must be registered with the Commodities Futures Trading Commission in order to be professional money managers.
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 there is no formal training process required, you still need the credentials. Even before applying to the NFA, you must pass the Series 3 exam. This 120-question, two-and-a-half hour test measures your understanding of the futures market, including its makeup and regulations.
Like any other test, you may benefit from tips and suggestions on test preparation, as well as strategies to take the test. There are many professional study guides specifically aimed at the Series 3 exam. Practice tests can keep you from being blindsided the morning of the test.
Deciding to become a CTA takes careful consideration. How much success have you had investing in the stock market, and was it continual through a variety of market conditions? Some success may be blind luck. Real talent sustains itself over time through all types of market conditions.
It's also important to consider personal finances and other life situations. You should have a considerable savings in the bank, as chances are you won't see a single paycheck the first year or two, unless your CTA firm already has a substantial amount under management. Even handling a $1,000,000 account with a 2 percent management fee only brings in $20,000 a year, or $1,600 a month.
Not only that, but you'll have to pay trading costs, technology costs as well as fees for traditional support and rent. Building a successful career as a CTA takes not only time, but also a substantial savings in the bank to sustain you those first years starting the business.
Yet, if you have a natural knack for investment, your career may pay off considerably in the end. Even in rocky financial times like these, CTAs play a vital role in the marketplace. Learning to spot changes and trends ahead of the curve is the key to sustaining a career over time. - 23200
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 there is no formal training process required, you still need the credentials. Even before applying to the NFA, you must pass the Series 3 exam. This 120-question, two-and-a-half hour test measures your understanding of the futures market, including its makeup and regulations.
Like any other test, you may benefit from tips and suggestions on test preparation, as well as strategies to take the test. There are many professional study guides specifically aimed at the Series 3 exam. Practice tests can keep you from being blindsided the morning of the test.
Deciding to become a CTA takes careful consideration. How much success have you had investing in the stock market, and was it continual through a variety of market conditions? Some success may be blind luck. Real talent sustains itself over time through all types of market conditions.
It's also important to consider personal finances and other life situations. You should have a considerable savings in the bank, as chances are you won't see a single paycheck the first year or two, unless your CTA firm already has a substantial amount under management. Even handling a $1,000,000 account with a 2 percent management fee only brings in $20,000 a year, or $1,600 a month.
Not only that, but you'll have to pay trading costs, technology costs as well as fees for traditional support and rent. Building a successful career as a CTA takes not only time, but also a substantial savings in the bank to sustain you those first years starting the business.
Yet, if you have a natural knack for investment, your career may pay off considerably in the end. Even in rocky financial times like these, CTAs play a vital role in the marketplace. Learning to spot changes and trends ahead of the curve is the key to sustaining a career over time. - 23200
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posted by X - Men @ 2:17 AM
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