CMT is also known as Chartered Market Technician. As the name suggests, this certification has everything to do with the analysis of the markets. This professional degree proves one’s mettle in the technical and investment analysis. The CMT Association is a global credentialing body with nearly 50 years of service to the financial industry. One can become an affiliate member with an annual fee of $325.
CMT curriculum keeps evolving keeping in view the job survey requirement and to keep CMT designation competitive. Better use and application of technical analysis forms the basis of any change in the curriculum. CMT is a value proposition and should be considered by people who are interested in the technical analysis of the market. This designation enhances both traditional and non-traditional career paths and boosts competitive appeal in many fields.
Eligibility for the Exam:
Aspirants who are looking to increase their knowledge base in technical analysis and financial analysis should pursue this degree. Eligibility for this degree is to have bachelors degree in finance. Many also pursue Masters in business administration prior to getting this degree. CMT or Chartered Market Technician requires you to give 3 levels of examinations administered by the accreditation committee i.e. CMT association.
There are three levels in the CMT exams:
- CMT level I
- CMT Level II
- CMT Level III
Materials that are covered by the CMT program spans a wide variety of statistical and technical analysis of price patterns, volume history and measures of trend, momentum and volatility.
Timing of the Exam:
CMT examination is conducted twice a year in the months of April and October. CMT level I exam date is from 9th April-14th April. Registration dates are between 18th December-14th January. If you’d register during the dates mentioned above, you will be able to save the extra registration fees that one would need to shell out if you register at the later dates which are 15th January- 11th March and 12th March- 31st March.
CMT level II exam dates are between 9th April-14th April 2018 as well and the registration dates are also similar.
CMT level III exam will be conducted on the 12th April’2018, and it’s registration dates remain the same.
Who Should Consider CMT:
If you are a finance professional and want to be differentiated in the field, CMT would provide you an edge. One can undertake this program to hone your skills. You could be a securities dealer, market or a research analyst, trader or a broker, fund Manager etc. CMTs are hired by stock brokerage companies, mutual fund, investment banking and hedge fund companies. According to US bureau of labor statistics there is 12% growth between 2012-2024 for all financial analysts. Currently top employers of the CMT’s are large investment banks such as Morgan Stanley, Wells Fargo, Bank of America, Charles Schwab, Fidelity, Wellington Management, Bloomberg , Barclays etc.
The Chartered Market Technician (CMT) designation marks the highest level of training within the discipline and is the preeminent designation for practitioners worldwide. Acquiring a CMT charter exhibit the mastery of core body of knowledge of investment risk in portfolio management which includes quantitative approach to market research and rule based trading system and design. CMT charter holders are recognized globally as knowledge facilitators and value generators.
CMT exam Preparation:
CMT program is a self-study program and is self paced, therefore you must focus on what topics need most priority. This way you can schedule and review your study activities. CMT preparation needs to be extensive . A candidate appearing for the exam requires approximately 400 hours of preparation divided among three levels contributing 100 hours for level I, 140 and 160 for level II and level III respectively.
Let’s look at the composition of each level in detail. How are the various levels different from each other and how can an aspirant prepare for them.
The curriculum covered in this level is pretty straight forward and assesses the aspirant on the basis of the fundamental terminology and the analytical tools required for technical and market analysis.
Some of the topics that are covered in the curriculum are the basic principle of technical analysis, the DOW analysis, history and construction of charts, moving averages, bar chart patterns, wave principle etc. As we can see from the above chart, major emphasis is on chart development and analysis and technical investment strategies. Once you are aware about the weight age of each section, you can focus and divide time according to the weight age of the section.
If you have a month’s time, you would have to strategize your preparation schedule accordingly. You might want to keep the last week only for test bank questions, and divide the 100 hours in 3 weeks which comes out to approximately 33.33 hours each week. It is not recommended to leave any topic rather study the book cover to cover.
Once the syllabus is completed within the time frame, you can move on and allot as much time you need for practice questions. The more the better.
One also needs to keep a tab of number of questions in the Level I exam. There are 132 multiple choice questions that need to be answered in 120 minutes; which essentially means that you have less than a minute to answer each question.
CMT curriculum was updated in 2017 as per the job-survey analysis. This was updated due to the needs that were uncovered by the survey of better integration with other disciplines and better discipline in applying technical analysis.
Wiley publications is the official partner of CMT association and you can find the best material on the bookshelf of the CMT website, once you enroll for the CMT exam. You will find the book by Charles Kirkpatric and Julie Dahlquist on technical analysis. You can also purchase the test banks from the Wiley efficient learning to excel and crack the CMT exam. The passing score for this exam is 70%.Hence broad knowledge of each topic is required.
Curriculum includes Market indicators, construction, chart and pattern analysis, confirmation, cycles, system testing and money management and ethics. As you can see from the chart above, major weight age in the exam is given to chart pattern analysis, trend analysis and to selection and design.
Again, division of number of hours depends on your situation and expertise. If you are a working professional, you’d need to understand the time to be devoted per week and how many months would be sufficient. Typically a total of 140 hours of study is recommended.
To fast forward your studies, you can purchase guides recommended by Wiley and the test banks. This would be of great value generator to any aspirant striving to clear the CMT level II exam.
This level has 160 multiple choice questions which need to be completed in 4 hours (240 minutes. An aspirant would have 1.5 minute to attempt each question, this is considerably higher than level I.
CMT level III curriculum comprises of volatility analysis, asset relationships , portfolio management, behavioral finance and ethics and standards of practice. As shown by the chart above major and equal weight age in this level is given to risk management and classical method.
This level deals with the practical applications and trading decisions based on wide research of charts and portfolio analysis. This paper is a 4 hour exam and it has an essay based format.
By this time you would have already cleared the two levels, candidate would be quite confident. This exam typically requires preparation of around 160 hours. Exam consists of 240 points and have 4 hours, i.e. 240 minutes to complete the test. Each response should be of the quality of technical research as published by the CMT charter holders.
Since, this is an essay based paper, it is checked by the CMT charter holders typically who have written the textbooks.
All three levels judge the candidate on ethics. Therefore studying for this section cannot be overlooked. Level I and Level II exam has a fixed passing score of 70%. This is the default pass percentage but the actual score may vary by 1-3% points. CMT level I and II exam results are generally declared within 3-4 week’s time while CMT level III results take longer and are usually declared within 6-8 weeks.
Wiley efficient learning curriculum offers both print material and e-books as well. It has the complete coverage of the required body of knowledge. It has concise and easy to follow format. It also provides test banks for one to practice and crack the exam easily.
After clearing the levels, be rest assured that you are equipped with the invaluable knowledge and skill. Have full faith and confidence on your abilities to crack this exam. All exams are tough and complex and so is the CMT exam, but with the right kind of preparation and attitude, you are sure to conquer it. Consistent studying and practicing will help you achieve your goal with ease. Keep your eyes on the price for extra motivation and inspiration.
Wiley had partnered with MTA in 2015 to bring CMT candidates the ideal study experience. It is now the official partner of CMT association.
Wiley Online Training is among the global leaders in international training for CPA, CMT, CFA, FRM, Data Science & Analytics. It has helped over 500,000 professionals across the globe. With Wiley Online Training, 9 out of 10 students pass their exams. Want to find out more? Call us at 0120-6291100/01 or drop us a quick message here.