Becoming a CTA Takes Time and a Savings Nest Egg
Money controls every function of the world, and commodities trading advisors play a key role in that exchange. The National Futures Association defines a CTA as an individual or firm that directly or indirectly advises clients on the selling and buying of futures or options contracts. As professional money managers, CTAs are required to be registered with the Commodities Futures Trading Commission.
Although there's no formal education process to become a CTA, it's advisable to first work at a trading firm prior to beginning a CTA career. Previous experience with a firm doesn't guarantee your success, nor is it a federal requirement. Many CTAs with no formal trading education prove themselves successfully in the market. However, first trying your hand with such a firm could indicate if you have a talent for trading.
While there's no formal training that's required, you still need to have the credentials. Before applying to the National Futures Association, you must first pass the Series 3 exam- a 120-question, 2.5-hour test that measures your understanding of the makeup and regulations of the futures market.
There are numerous professional study guides available to help you prepare for the test. You can benefit from tips and test-taking suggestions, as well as try practice tests to keep you from being blindsided on test day.
First, you must determine if you are ready to become a CTA. How much success have you had playing the stock market over a long period time? A certain amount of success may be fleeting and simply a luck of the market. Real talent can sustain such success over an extended period of time through a variety of 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.
Not only that, but you'll also face trading costs, technology costs, fees for traditional support as well as rent. It's important to have secure savings before you even 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. - 23196
Although there's no formal education process to become a CTA, it's advisable to first work at a trading firm prior to beginning a CTA career. Previous experience with a firm doesn't guarantee your success, nor is it a federal requirement. Many CTAs with no formal trading education prove themselves successfully in the market. However, first trying your hand with such a firm could indicate if you have a talent for trading.
While there's no formal training that's required, you still need to have the credentials. Before applying to the National Futures Association, you must first pass the Series 3 exam- a 120-question, 2.5-hour test that measures your understanding of the makeup and regulations of the futures market.
There are numerous professional study guides available to help you prepare for the test. You can benefit from tips and test-taking suggestions, as well as try practice tests to keep you from being blindsided on test day.
First, you must determine if you are ready to become a CTA. How much success have you had playing the stock market over a long period time? A certain amount of success may be fleeting and simply a luck of the market. Real talent can sustain such success over an extended period of time through a variety of 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.
Not only that, but you'll also face trading costs, technology costs, fees for traditional support as well as rent. It's important to have secure savings before you even 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. - 23196
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posted by X - Men @ 2:35 AM
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