A Career in Commodities Training Takes Time to Build
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.
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.
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.
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.
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. - 23199
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.
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.
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.
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.
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. - 23199
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posted by X - Men @ 5:05 AM
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