Portfolio Manager VS Day Trader motivation, possibly, previous, question, studying

eagles_dare13

This is my first forum topic here and if this has been discussed in the past kindly refer me to the previous link(s).
After writing all 3 levels and spent countless hours on studying, like many other candidates/ charterholder, I question my motivation behind studying for CFA. Yes, it is probably too late as my effort has become sunk cost now and I can’t possibly get the time back, but since many people have already established the fact that 1) CFA doesn’t guarentee you a job, and 2) you need to be a super star (beyond and above being a CFA charterholder alone) to make top dollars in finance… I couldn’t help but wonder, if I am THAT good with stock-picking, do I have to work for a big investment firm to make the big bucks?
Here’s the thing, over the past couple years I’ve met many entrepreneurs and day-traders who, most of them, do not even have an undergraduate degree, and yet, they make at least as much (most often more) than an average portfolio manager.
Take one of my friends as an example, he started trading as soon as he’s old enough to open a trading account with couple thousand dollars from his part-time job. He barely made out of highschool and was self-educated, by 22 years old he was already making 6-figures and day trading full-time. If you were to take the investment banking route (finance degree –> CFA/ MBA), you would mostly likely still be a starving student participating in an online stock game at that age.
What I am trying to say is, if you are purely money driven and truly keen on beating the stock market, which A LOT OF people who study finance think they are and possess superior skills than others, would it make more sense to spend the time making money early than focus so much on going to top schools, studying things that may not benefit you at all, and go through hours of reading and mastering exam-writing strategies?


For those who are wondering… I am not bashing one profession over another, because quite frankly, I am neither. I don’t think I would be a successful banker rubbing shoulders with billionaires in private jets even if i have all my CFA, MBA and master in finance. And i don’t believe i have the smarts and discipline to make 700% return a year as a day trader. I am asking only because a lot of people ask me what’s my take on the CFA program and i have a mixed feeling because I am unsure if it’s really worth the time and energy. If i am already in the industry and my company sponsors me to take the CFA exam because it’s a requirement, fair enough, you’ve got to do what you’ve got to do. But as a university student thinking of a career path, if i’m just an average student it would certainly be easier to get employment by becoming an accountant and still make decent money.

PalacioHill

I know several people who tried day trading and can say that only one can be called relatively successful. The advantage for this person is that his wife makes very good living working in health care, and that is his safety net. I don’t know if would have made it without such support system in place.
As for making money from trading - it’s up and down for him, it will not make him rich for sure.

joehogue

I think making a successful trading career takes much more effort than that. I think it takes somewhere 5-10 years before you find the method which suits your personality and statistical edge and lets not even consider the emotional pain with losing money, though there are exceptions. Took 8 years, 10000s of books, lost MONEY . I think its much much  more psychological than anything to do with have an “edge”. It all depends what you love to do and how bad you want. I see a nice “Insurance plan” on my trading plan because I fail. Atleast I wont die hungry.
-“Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.” Ed Seykota

LBriscoe

This thread highly reminds me of this short video.  
One cartoon character uses the F word towards the end.  Watch this alone, or use headphones

pennyless

I’ve read somewhere that George Soros used to say to a roomful of portfolio manager hopefuls that in 5 yrs time more than two-thirds of them will get washed out of their careers (by the markets)

eoin

You are probably still very young (i’m assuming) with limited experience. I think accountants in developed markets like singapore should offer accounting jobs at least at 60-70K range?

tarunajwani

The golden rule in trading is 4%.  Those in that category absolutely kill it.

justin88

100% of asset managers make thier salary, 50% of (professional) day traders break even

Andreas42

i’d say the 60-100k range is pretty average and is attainable by almost anybody with the CFA charter over their lifetime. BUT, in addition to that 60-100k, you get to manage your portfolio at a professional level versus having to pay for it had you chosen another field. take 1-1.5% mgmt fee over 60 years and you’ve got plenty in additional unrealized income. plus, you have the opportunity of discovering investments that would otherwise go undiscovered and the opportunity to make crazy alpha that you would otherwise be unable to make.
personally, i enjoy finance content over sciences content. i’ve been doing TVofM calcs in my head since i was 12 just for the fun of it. i can be a blabbermouth so i need to be in either finance or law versus the sciences or tech, and finance involves much less study than law. i chose the CFA route because i enjoy it. CFAs may aim to make more than 100k, but very few do or will make much more than 100k. this is especially true in the “new normal”.
CFA makes you much more employable than some biology MS. going the CFA route is incredibly cost effective for the job opportunities it creates. at least i’m not an accountant.

dvilayphet

Thanks Matt,
That opens another discussion, if you’re only aiming to make 60-100K year (i’m assuming USD), there are many professions that make at least that with a less rigorous education process - why become a CFA?
Most CFAs probably aim to make a lot more than that i assume?