I wrote on investing in yourself last Friday. I wrote an article titled CFA - Worth The Effort which has generated more comments than any other post I have made. An anonymous commentator wrote that as an active trader of his own portfolio the only thing his bankers cared about was success. A CFA or MBA were superfluous.
My friend Bob H wrote a masterful response that is worth reading. Thanks Bob. I would like to use my bully pulpit to put two more of my cents into the equation.
I traded FX for 5 1/2 years in 132 currencies in 169 countries. I traded for Tom, Spot, and Forward settlement. I traded range forwards, caps, collars and floors. I traded digital or one touch options. I was generally very successful. I mention this only to say that I understand trading and a trading mentality.
What prepared me to trade FX?
When I was in graduate school to get my MBA I had classes in Corporate Finance. We learned about hedging future sales and exposures of different kinds. I also took courses in International Business and obtained a second concentration in that area. We learned about FX, purchasing power parity, devaluation and other factors important to consider in FX trades.
During my career at Chase I translated financial statements from one currency to another some at spot rates, some at average rates, and I learned why and when to do that. I sold dollar settlement services to large European banks and learned how FX trades settle. I settled Chase's position with the New York Clearing House where the US dollar side of FX transactions are settled. I also lived in 5 countries and dealt with the realities of FX every day.
So, when I needed to trade FX, I was prepared to do so, both by education and by working for a large corporation. These are both things Anonymous finds to be anathema.
My point in this ramble is that whether you are going to trade for yourself, or are going to work for a large corporation, education can help you do a better job and can get your foot into the banker's door when you are searching for capital or credit to do your thing. I reiterate a previous statement, get all the education you can afford and continue getting educated along the way. It is a more sure way to make your fortune.
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