Becoming an Independent Analyst

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Jul 7, 2009 10:02 pm

I'm interested in becoming an independent analyst.  I've been trading for 6 or 7 years on my own and have done pretty well.  What I want to do is set up a part-time business to evaluate stocks for prospective clients.  I'd like to do this part-time on the side for a while until the income from that is acceptable to make the jump from my current job.

 
I have a solid career right now as an Engineer and make too much money to jump in full board right now.  I can't take the pay cut to quit and go work for an Edward Jones (or equivalent) just to get my Series 7. 
 
From what I can tell I need the Series 86/87 to be an Analyst (which needs the Series 7).  It seems impossible for me to get sponsorship.  Who will want to sponsor me given:
 
1)  I will only do it part-time
2)  I intend on being independent
 
First, I want to be sure my plans need the Series 7.  Can someone confirm this?
 
Second, does anyone have any recommendations on how I can obtain sponsorship given my situation?
 
Thanks.
Jul 8, 2009 7:15 am

iceco1d,

 
Thanks for the input.  I'll look into some of what you had to say.  I hardly think I'm invincable and know I don't know enough to compete right now... that is why I'm on this board to get advice to figure out what I need to learn.  While I build that knowledge/client base up I'll stick to "trains" like I said.
 
Very negative tone to this forum...
Jul 8, 2009 8:35 am

colaveca - you are correct. In order to sit for the analysts exam, you need the Series 7.



American Investment Training can possibly get you sponsored to take your 7 www.aitraining.com.



In addition, you can become a buy-side analyst without passing an exam. Just hang a shingle and say "Here I am". I would recommend you learn a little bit the basics of analyzing investments before actually doing anything.



If you are any good, you may be able to be hired as a contractor by an RIA firm.



What I would do if I were you, is study for the CFA exam, pass all three levels and then set up shop as an independent buy-side analyst.







Jul 8, 2009 8:47 am
colaveca:

I'm interested in becoming an independent analyst.  I've been trading for 6 or 7 years on my own and have done pretty well.  What I want to do is set up a part-time business to evaluate stocks for prospective clients.  I'd like to do this part-time on the side for a while until the income from that is acceptable to make the jump from my current job.

 
I have a solid career right now as an Engineer and make too much money to jump in full board right now.  I can't take the pay cut to quit and go work for an Edward Jones (or equivalent) just to get my Series 7. 
 
From what I can tell I need the Series 86/87 to be an Analyst (which needs the Series 7).  It seems impossible for me to get sponsorship.  Who will want to sponsor me given:
 
1)  I will only do it part-time
2)  I intend on being independent
 
First, I want to be sure my plans need the Series 7.  Can someone confirm this?
 
Second, does anyone have any recommendations on how I can obtain sponsorship given my situation?
 
Thanks.

 
I'm just trying to figure out how you will get clients.  My thought process when it comes to individual stocks is that if someone really knows what they are doing in terms of picking winners and losers, they will have no need for clients.
Jul 9, 2009 9:23 pm
colaveca:

iceco1d,

 
Thanks for the input.  I'll look into some of what you had to say.  I hardly think I'm invincable and know I don't know enough to compete right now... that is why I'm on this board to get advice to figure out what I need to learn.  While I build that knowledge/client base up I'll stick to "trains" like I said.
 
Very negative tone to this forum...
 
Colaveca
Don't be offended by the negative tone, some guys have a stick up their a#s on this forum.  Don't listen to anyone who says you will not be able to succeed in this business.  Some guys want people to think they have a special gift but all it takes is hard work.  I agree with the RIA idea and the CFA idea if you want to really put the effort, but the CFA is not easy and will take a few years.  I would focus on not just stock picks but portfolio construction, it will reach a broader client base.  Also, most who do well in this business are good with people, this is pretty important so make sure you are good at striking up a conversation with a stranger(a lot of engineers are not, that is why I mention this).  Gook Luck.
Jul 9, 2009 10:36 pm

Wow. 

 
Thanks LA Broker.  Yes I see your point about engineers not having the best of communication skills.  I work with many of them.  Maybe it's not just engineers though?
 
Thanks for all the advice.  I've found the details of what I need elsewhere. 
Jul 10, 2009 9:02 pm
iceco1d:

Colaveca,

 
There you have it.  You've now received advice from the all knowing LA Polesmoker.  Surfboard waxer in the morning, assistant to a REAL FA in the afternoon, and make-believe big hitter, million dollar producer, by night. 
 
Please find one quote where I have claimed to be a big hitter, million dollar producer.  I have always been honest and stated facts on this site.  MBA, CFP, 30 million AUM.....Anybody knows that does not make me a million dollar producer, it makes me a successful 27 year old in this business.  I am working my as# off every day, 6 days a week trying to be the million dollar producer.  I never got into this petty war of words with a select few until they started up acting like a bunch of 22 year olds right out of college.  Besides, why would I be offended by being a surfer?  Have you ever tried it?  It's not very easy and you have to be a good athlete and have the balls to sit in cold pacific ocean water for several hours. 
Jul 11, 2009 8:56 am
LA Broker:
iceco1d:

Colaveca,



There you have it. You've now received advice from the all knowing LA Polesmoker. Surfboard waxer in the morning, assistant to a REAL FA in the afternoon, and make-believe big hitter, million dollar producer, by night.


Please find one quote where I have claimed to be a big hitter, million dollar producer. I have always been honest and stated facts on this site. MBA, CFP, 30 million AUM.....Anybody knows that does not make me a million dollar producer, it makes me a successful 27 year old in this business. I am working my as# off every day, 6 days a week trying to be the million dollar producer. I never got into this petty war of words with a select few until they started up acting like a bunch of 22 year olds right out of college. Besides, why would I be offended by being a surfer? Have you ever tried it? It's not very easy and you have to be a good athlete and have the balls to sit in cold pacific ocean water for several hours.





You are not a surfer - you wax surfboards.



Also, you have said in the past that you are "struggling" with the ups and downs. $30 million wrapped is not struggling. You can at least buy some Ramen.



You sir... are a liar.







Jul 12, 2009 7:00 am

Colaveca,

 
I want to address your original question, because you reminded me of someone that I know.
 
I met a engineer in a CFP class that I attended. He was in a similiar situation: Good job as an engineer, but wanting to use his "analytical" skills to be an advisor. He was working 40 hours a week and taking classes to be a CFP. (One thing that he knew up front was that if he passed the CFP, he would not be able to use the CFP marks for 3 years until he was in the industry for that time period: a CFP requirement.)
 
I have a different background from most of the posters here. I am a bond trader with around 11 years experience in Investments, so I do not work as a financial advisor. As an Analyst for a PUBLIC company normally the CFA is required. The CFA will take you about 3 years to get and is extremely challenging.  I don't believe this is the route you want to go.
 
I interpret your post to mean that you want to be more in a financial ADVISOR role where you manage people's money. You want to study something to get yourself qualified and have a client base starting out part time. I don't KNOW exactally of a way to do this. There really isn't a model for you. I believe that is why you received some of the comments that you received. As an advisor, it is a SALES job that could only be accomplished traditionally working full-time by a sponsored firm.
 
The engineer started his own RIA and has a Series 66 and a CFP. He is a retired engineer with mostly engineer clients. It is his "retired guy" job. I would not say he is wildly successful, but his clients like him: After all, he is as hyper-detailed as them.
 
Hope that helps.
 
Jul 29, 2009 10:38 pm
iceco1d:

Colaveca,

 
There you have it.  You've now received advice from the all knowing LA Polesmoker.  Surfboard waxer in the morning, assistant to a REAL FA in the afternoon, and make-believe big hitter, million dollar producer, by night. 
 
Ice,
 
You are one funny mother F*er!