A Career in Commodities Training Takes Time to Build
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.
To become a CTA, there's no formal education process. Although its advisable to first work at a trading firm prior to starting a CTA career, it doesn't guarantee your success, nor is previous work with a firm required in becoming a CTA. Plenty of CTAs have no formal trading education and still have proven themselves successfully capable in this business However, first trying your hand with a trading firm can help determine whether you have a natural talent for the work.
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.
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.
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.
You should also take finances and personal circumstances into consideration. Beginning any business can be tricky, especially commodities trading. Unless your firm has a substantial amount of work already under management, you should count on never seeing a paycheck for the first year or two. Consider that a $1,000,000 account with a 2 percent management fee only earns $20,000 a year, just barely $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.
However, if you have the natural talent to invest, a successful career may await you. Even in rocky times such as these, CTAs play a valuable role in the marketplace. Learning to spot market trends early can lead to a sustainable career in the exchange of managed futures. - 23159
To become a CTA, there's no formal education process. Although its advisable to first work at a trading firm prior to starting a CTA career, it doesn't guarantee your success, nor is previous work with a firm required in becoming a CTA. Plenty of CTAs have no formal trading education and still have proven themselves successfully capable in this business However, first trying your hand with a trading firm can help determine whether you have a natural talent for the work.
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.
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.
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.
You should also take finances and personal circumstances into consideration. Beginning any business can be tricky, especially commodities trading. Unless your firm has a substantial amount of work already under management, you should count on never seeing a paycheck for the first year or two. Consider that a $1,000,000 account with a 2 percent management fee only earns $20,000 a year, just barely $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.
However, if you have the natural talent to invest, a successful career may await you. Even in rocky times such as these, CTAs play a valuable role in the marketplace. Learning to spot market trends early can lead to a sustainable career in the exchange of managed futures. - 23159
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posted by X - Men @ 5:06 AM
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