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Showing posts from March, 2021

What skills one should possess before enrolling into CFA program?

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Chartered Financial Analyst examination is considered to be one of the most prestigious and reputed designations in the field of finance. To become a CFA, one needs to clear all three levels of CFA examination. This post graduate program is offered by CFA Institute, California. The CFA institute accommodates more than 150,000 charter holders which are spread across 163 countries. What it takes to become a CFA- Passing the CFA exam needs a lot  o f preparation and self study. Clearing the examination isn’t a cake walk. It is challenging but like every other challenging thing in the world, it is totally worth the efforts. As per CFA Institute, the CFA charter is the most honorable and reputed investment management designation in the world. If you wish to earn this batch of respect, then some common questions must have crossed your mind such as “What skills should one possess before enrolling into CFA program?” To become a CFA, one must possess the following skills- Discipline- It is usua

CFA level 2 exam-

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CFA course- CFA Institute offers CFA (Chartered Financial Analyst) post graduate program. The CFA certification is known to be one of the highest distinctions in the field of finance and investment. The gold standard in finance industry is considered one of the most prestigious and reputed designations. The CFA institute accommodates more than 150,000 charter holders which are spread across 163 countries. To become a CFA charter holder, one needs to clear all three levels of CFA examination. CFA exam level 2- The eligibility criteria to give CFA level 2 examination is clearing CFA level 1 exam. Structure and duration- The CFA level 2 exam includes set of questions in a multiple choice answer format. Earlier, offline exams were held. However, due to covid-19 situation, the exams would be conducted through online method i.e computer based. The online mode of examination has a duration of 4.5 hours, divided into two sessions with an additional break if required. There are 44 multiple cho

CFA level 1 exam details-

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  CFA Course- In the finance domain, Chartered Financial Analyst is considered the highest distinctions. An individual with a CFA degree has an edge over other finance professionals in the investment management industry. CFA institute, California, offers CFA program. The CFA Institute comprises more than 150,000 charter holders which are spread across 163 countries. CFA exam levels- All three levels of CFA charter i.e. CFA level 1, CFA level 2 and CFA level 3 help an individual gain optimum exposure in various curriculum topics of finance such as quantitative methods, economics, financial reporting and analysis, tax analysis, equity investments, portfolio management, performance measurements etc. With every passing subject level, the difficulty increases. Without a doubt, CFA level 1 is less complex than the other two levels. Each level of CFA exam is a way to test one’s knowledge and expertise of the subject. CFA level 1 eligibility- Candidates who wish to pursue CFA level 1 must fol

CFA exam curriculum

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The prestige and value associated with earning a   CFA charter   is priceless. Passing the Chartered Financial Analyst exam and holding the charter isn’t an easy task. It is a very difficult and strain full process. A CFA exam not only tests one’s intellectual skills but also their dedication, determination and creative side. The program is built in a manner to check your passion towards becoming a certified financial analyst. The CFA program comprises the basic knowledge that companies require in the investment and finance domain. It also includes advanced management skills which are crucial to survive in the investment management industry. The CFA Institute, California, keeps updating its curriculum regularly to reflect their modern financial practices. One of the most astonishing facts about CFA candidates is that they can put their acquired skills through CFA program into real world scenarios. The CFA syllabus is designed through an Education Advisory Committee. Key players such as

CFA Scholarships

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Chartered Financial Analyst course   is a post graduate certification program conducted by CFA Institute, California which includes current practice, investment theory with ethical and professional standards to impart investment analysis and portfolio management skills. CFA exam covers curriculum topics like ethical and professional standards, securities analysis and valuation, international financial statement analysis, quantitative methods, economics, corporate finance, wealth management, portfolio management and portfolio analysis. Often people can be heard saying that CFA is a bit expensive course to pursue especially when you compare it with other courses that are indeed very economical. But the CFA Institute does have few scholarship programs through which they offer scholarships to eligible candidates every year. These scholarships cover the most part of course registration and exam fees making it durable for people from humble backgrounds. CFA Institute provides CFA scholarship

Ban on Crypto currency- Boon or Bane?

  Recently, the government has initiated introduction of a new bill to ban   crypto currencies   like bitcoin, altcoin and create its own digital currency. The idea of ban on cryptocurrency has created a paranoid situation for industry leaders and entrepreneurs. This is not the first time that the topic of “cryptocurrrency ban” has come into limelight. The Reserve Bank of India (RBI) had prohibited the buying and selling of cryptocurrencies for two years before the ban was overruled by the Supreme Court in March 2020.  The bill drafted aims to “create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India (RBI)”. Governments from all over the world are working to regulate cryptocurrency and its working. However, there isn’t any major economy which has been successful in taking this bold move. The major concern of government includes illicit trading in cryptocurrency. The central bank has time and again raised its concerns regard

CFA Exam Schedule

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  Currently, the only question buzzing around student’s mind is “When is the CFA exam?” Every   Chartered Financial Analyst   aspirant who wishes to earn the gold standard in finance profession is curious to know CFA exam date and details. Due to coronavirus, the CFA exams which were scheduled to be held on June 2020 were postponed. Numerous CFA exam December 2020 sittings were cancelled due to exam center closures. In January, CFA Institute, California made a decision to provide the option of postponing the exam for February 2021 to one of these windows: May 2021, July 2021 or August 2021 with no additional cost.  This was in accordance with the increasing government restrictions and covid-19 cases. It implies level 1 candidates who enrolled themselves for June 2020 or December 2020 examination, have an option to register for a new march exam window which is exclusively available for them. The new July exam window is open to all CFA aspirants. The candidates who faced an issue of full

What are moving averages?

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Under  technical analysis , indicators have a crucial role to play. Indicators are pattern-based signals made through price, volume, and/or open interest of a security or  contract used by traders who follow technical analysis. Indicators are used to forecast price movements. Some examples of common technical indicators are- moving averages, moving average convergence divergence (MACD), relative strength index (RSI), Bollinger Bands and Exponential moving average (EMA). The moving average (MA) is an indicator used to find out the direction of a current price trend regardless of the short term price fluctuations. The moving average formula as a technical analysis indicator, finds out price data by updating a regular average price. When the moving average is showcased through a price chart, a single/ flat liner removes any differences caused due to changes in price. They do not forecast the direction of price, instead define the current direction in accordance with the past prices. There

Will CFA get me a job?

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CFA certification   is considered the highest distinctions in the investment management profession. After earning the CFA charter, one possess the required amount of knowledge and skill set required to excel in the investment industry. To obtain a CFA Charter, a student has to clear three levels of CFA exam. Passing the CFA examination is a difficult task but it is a fruitful process. Becoming a CFA Charter holder and enrolling for the CFA program paves a way towards your success in the investment domain. Portfolio manager and research analyst are the major professions opted by people who own the CFA designation. After owning a CFA charter, one can choose a lot of professional designations such as corporate financial analyst, accountant, auditor, consultant, risk analyst/manager, relationship manager/ account manager, credit analyst etc. After clearing CFA exam, one gets a renowned designation in the field of finance.  Companies and professionals in the investment industry help clients

Will cryptocurrency be the future?

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The journey of altcoin and bitcoin, forms of  cryptocurrency exchange , started in 2009. It was used for peer-to-peer transactions without the involvement of a third party such as a central bank. People who made transactions through digital currency in early times earned millions owing to value fluctuations. Thus, the price reached about $19.783 (around €16.17) per bitcoin in late 2017. This effect was called the  “ price bubble ”  by critics. This created a trend of buying, selling and trading bitcoin. New cryptocurriences were also introduced- Litherium in 2011, Ripple in 2012, Ethereum in 2015. Over the time span, digital transactions have created their way to success. A huge shift from traditional monetary system of exchange to digital currency has been seen. The significant rise in cryptocurrencies results from the failures in existing financial system. The new system of digital payments is not only easy to execute, but transparent too. The cost of financial transactions through c

How technical analysis works?

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  Stock market technical analysis   implies the study of historical market data, such as price and volume. Through the help of market psychology, economics and quantitative analysis, individuals use technical analysis to forecast future market behavior based on past performances. Chart patterns and technical analysis indicators are two common forms of it. Traders make their decisions based on technical analysis to know what is likely to happen in the stock market.  Traders may use simple trend lines, volume indicators, chart patterns, technical indicators to make their decisions.  Candlestick chart is the most commonly used chart pattern. Each candlestick chart denotes different price action in different time periods. For example, every candlestick on an hourly chart shows the price action for one hour, while every candlestick on a 4-hour chart showcases the price action during each 4-hour time period.  Support and resistant levels are used to find out the price points on chart pattern

Is CFA exam tough?

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Clearing the   CFA program  needs discipline, focus and extensive studying hours. One must have a proper plan and the right kind of guidance to pass all three levels. The exam consist of different topics such as economics, finance, ethics and professional standards, corporate finance, equity, derivatives, portfolio management etc. The preparatory books provided by CFA institute are a bit complex for the students to understand. That is why students find it difficult to study for CFA exam and look for alternative preparatory materials. Getting the right assistance is essential to clear Chartered Financial Analyst Course easily.  The test material for CFA exam is extremely difficult. The questions in the examination are designed to trick the candidates. Therefore, it is important for the students to give mock tests so as to stay updated with the similar type of questions offered and feel confident to clear the exam in the first go. It won’t be wrong to say that CFA exams are very difficul

What are Ethereum and Ripple in Cryptocurrency?

  Cryptocurrency  is a digital method of payment that can be used to buy and sell goods and services. Cryptocurrencies function through a technology known as “Blockchain”. It is a technology spread across many computers that analyze and record transactions. Ripple and Ethereum are cryptocurrencies that work through blockchain technology. It helps people make easy transactions without physically being present at a particular place. It removes all geographical boundaries and makes the transaction process accessible.  Ethereum was launched in 2015 and founded by Russian-Canadian developer, Vitalik Buterin. It is the first blockchain ever to enable the creation and entering of smart contract agreements by people. A smart contract is a kind of agreement which works on some pre-conceived conditions and proceeds with the transaction after those conditions are fulfilled. The Ripple cryptocurrency was first produced in 2012, three years prior to Ethereum. Ripple Labs, located in San Francisco,

What are technical analysis indicators?

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Indicators are an important element of   technical analysis.   Indicators are pattern-based signals created through the price, volume, and/or open interest of a security or contract used by traders under technical analysis. Traders who follow technical analysis use indicators to forecast the movements in price. Some examples of common technical indicators are- the Relative Strength Index, Money Flow Index, Stochastic RSI, MACD and Bollinger Bands. Technical indicators are used by analysts and chartists to study price data and understand when to enter or exit the trade in stock market. It is an instrument produced to study investments and know best trading opportunities, like the volume and price movement. It can be useful for any historical trading data such as futures, stocks, commodities, fixed income, currencies and different securities. Active traders commonly use indicators because they analyze short-term price movements through it.  Indicators in stock market are divided into 2 m

How CFA course works?

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Completing a CFA course and earning a  Chartered Financial Analyst (CFA)  is one of the respected designations in finance. CFA charter is considered gold standard in the field of finance. This globally-recognized professional program is conducted by CFA Institute (USA). To achieve CFA Certification, one needs to clear three exam levels which cover areas, like FRA, economics, ethics, equity fixed income etc. Enrolling for a CFA course provides a lot of benefits to the candidates such as education benefits. CFA helps you learn a lot and add a major credential to your CV. People in the business understand the time and dedication it takes to earn the charter, which makes it one of the most reputed designations in the world. A lot of financial benefits are also attached to it. You get a better hike in salary in comparison to other programs or reach a better designation after you become a CFA.   CFA course serves as a golden ticket in the field of investment. CFA program opens the door for a

What are candlestick charts?

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Traders use   candlestick charts  to know the possible price movement as per their past patterns in the share market. It is an important aspect of technical analysis. Candlestick charts are popular due to the wide range of trading information they provide, in accordance with the easy design to read and interpret. A lot of algorithms are made on the same price information as portrayed in candlestick charts. On the chart, each candlestick represents the open, high, low, and close price with the time period chosen by the trader. Candlestick also represents the current price in the process of formation, irrespective of whether the price moves up or down over the period of time or the range, the asset covers during that time.  There is a wide part in the candlestick called “body”. This body shows the range of price between the open and close of that day’s trading. A body filled with red symbolizes that the close was lower than the open in the share market. A green body indicates that the cl

What is Bitcoin?

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Bitcoin   is a popular form of cryptocurrency exchange which came into existence in 2009. Through it, transactions are made with no mediator or banks. Bitcoins are useful to buy merchandise anonymously in an exchange organized market. It makes international payments easier and cheaper because bitcoins are not confined to a particular country or subject to regulation. Bitcoins are also brought by people as an investment, in hopes of increased value in the future. Bitcoin provides less transaction fees than old online payment methods. There are no physical bitcoins, rather only balances which are accessible by everyone. Bitcoins are not provided by any bank or government. Bitcoins have gained immense popularity, and has laid the foundation of a lot of virtual currencies collectively known as Altcoins. A lot of marketplaces such as “bitcoin exchanges” ensure buying and selling of bitcoins using multiple currencies. The transfer of bitcoins is quite easy as people can send bitcoins to each

What are all the changes to CFA level 1 exam in 2021?

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The   chartered financial analyst (CFA)   is a globally recognized designation given by the CFA Institute, California. To earn the CFA charter, you are required to pass three levels of CFA examination. If you wish to become a CFA or hold the gold standard in finance profession, it is important to know every detail about CFA exam patterns and its schedule. Candidates are required to pass three levels of exams covering areas such as ethical and professional standards, quantitative methods, economics, financial reporting and analysis, corporate finance, equity investments, fixed income, derivatives, alternate investments, portfolio management and wealth planning.  As of currently in 2020, there are more than 167,000 CFA charterholders worldwide in 163 countries and regions. The designation is handed out by the CFA Institute, which has nine offices worldwide and 156 local member societies. Post covid-19, there have been some changes to CFA exam criteria in 2021. A major update incurred in

Is CFA relevant in modern times?

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Chartered Financial Analyst  is known to be the highest distinctions in the investment management profession. The CFA program provides the real world skills and expertise to survive in the finance domain. A CFA charter is given to the one who clears all three levels OF CFA exam. The exam tests a student’s knowledge in the core areas of curriculum topics such as investment analysis, asset valuation, portfolio management, wealth management etc. Relevance- The first thing that comes under the minds of people after coming to terms with CFA course details is- Does CFA still hold relevance in the current time? Becoming a CFA Charter holder isn’t an easy journey. The time and efforts needed to clear CFA examination cause some major questions in the minds of people. Questions like is CFA really worth it? Or should I pursue CFA course? Do the efforts pay off in the end?  Let’s put an end to all your questions by understanding the relevance of CFA in the modern scenario.  - Without a doubt, th

Why is CFA important?

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Becoming a CFA charter is a difficult process. One needs a lot of preparation and hard work to clear all three levels of CFA exam. But, the benefits of   CFA course   make the whole journey worth it. Whenever a student thinks of opting CFA program as a career choice, the first question that comes up in his/her mind is- What makes taking CFA worth it? There are a lot of advantages of being a CFA charter holder. Some of them are as follows- 1)      One of the most reputed designations makes your CV stand out- The globally-recognized professional certification program is one of the most reputed career choices in finance industry. A Chartered Financial Analyst course clearly stands out on your CV. 2)      A better choice than an MBA program- Getting a CFA certification is considered more time and cost effective than an MBA program. There are a lot of career options wherein a CFA Charter holder is given preference over an MBA graduate such as investment banking, portfolio management, stock