What is the essential difference between a good analyst and a good trader?

The difference is huge!

Analysts are like talking on paper, pointing out the country with their mouths,

Blame Fang Qiu for being "irresponsible"

Often the market is like a vegetable seller in the rivers and lakes

After the game, after the game, the cannon

As far as the transaction itself is concerned, it is almost meaningless

What is a trader? It is a general who leads soldiers of different ranks. He arranges troops on the battlefield and will fight himself when necessary.

Advance when you should advance, retreat when you should retreat,

Rewards and punishments are clear, dare a strong man cut off his wrist

never sloppy

After all, there is a chance to become a small prince and have a little fiefdom of his own

While chatting and laughing, I watched the talkative "military division" bragging with the "leeks", talking about a past that did not belong to me

There are two kinds of people in the financial industry: analysts and traders. So which of these two types of people are ordinary investors? What is the difference between the two?

The difference between an analyst and a trader

Analysts are the spokesmen of the forecasters, who believe that the future trend of stock prices can be predicted . Their focus is the relationship between past prices and future prices, and their goal is to predict future price trends or future price predictions. The philosophy pursued by analysts is to try to be as accurate as possible in every prediction, and they like to exaggerate their analytical skills. Those who belong to the theoretical school are often powerless when faced with the fact that the prediction does not match the reality. Analysts do not have a good psychological quality to withstand market pressure , and good analysts are often frightened by the fluctuations of the trend in actual operations.

The trader is the spokesperson of the trading school. The trader never predicts the future trend of the stock price. The focus of the trader is to study the distribution characteristics of the price and establish orderly trading rules from the disorderly market . The investment philosophy pursued by traders is: mistakes are inevitable, as long as risk prevention and capital control techniques are strengthened, trading mistakes can be reduced and mistakes can be controlled in a small range of losses. Traders are pursuing the maximization of profits on the premise of minimizing risks. Traders pay attention to analyzing technical defects and constraints, and can quickly implement countermeasures that are beneficial to transactions according to stock price fluctuations. Traders have a good psychological quality , and they will not be surprised in the transaction. Analyzing buying points has almost become the entire work of analysts, but this is only part of the work of traders .

We often hear remarks like "Look, the XXXX I said has risen, haha, I didn't buy it myself". This is the true portrayal of analysts. However, in order to conceal their lack of psychological quality, many analysts often show a "god" image in front of the public, often exaggerating the successful cases of prediction, and pursuing the failure of prediction cases. "Escapism" keeps silent, they need to maintain an "invincible" image in front of the public.

In the eyes of "God", there is no concept of losing money and no concept of risk. Now that you have reached the state of "invincible", of course you will not lose money. Just imagine, is this possible? In fact, anyone who has done transactions knows: Everyone All have the experience of making money, but also have the experience of losing money. "Invincibility" is simply not possible in financial markets. Having the experience of making money does not mean having the ability to make money, and having the experience of losing money does not necessarily mean that you have no ability to make money.

Analysts often equate the experience of making money with the ability to make money, and analysts "can't leave their mouths" about the experience of making money to magnify their ability to make money. And traders dare to face mistakes and failures. In the eyes of traders: every transaction that conforms to the trading rules (losing money) is correct, and every transaction that violates the trading rules (making money) is wrong. Traders face the market with an objective attitude. Traders believe that market risks exist and are inevitable. Only by daring to face up to risks can they skillfully resolve risks and finally overcome risks.

I often see such people around me. When there is a problem at work, the first thing to say is "I didn't do it!" The purpose is to shirk responsibility. But there are also such people around me. When there is a problem at work, they don't say anything, but immediately start to analyze the cause of the problem and find remedial measures. The two different attitudes correspond to the life philosophies of analysts and traders.

After understanding the difference between an analyst and a trader, shouldn’t you reflect on it? Are you an analyst now? The last signal sent by the market is what you must follow, not what you expect, and it will work s things.

Expectations don't work in this business, it's reality to follow the market action and react at any time. Once you learn to trade with reality instead of hope, you will break through the boundaries and become a successful trader. Come on, analysts! Being a trader is the only way for you!

Analysts and Traders

The capital market is full of charm, and there are so many words to describe the attractiveness: wealth, fanaticism, humanity and huge profits. And in the capital world, there are two roles that often fascinate "all beings": analysts and traders. There are also several words to describe them: mysterious, calm, intelligent and big money.

The Chinese capital market often imagines "analysts" as an important role that can lead investors to make a fortune, and is often "mythical". Should it be so? The answer I give is no.

So what exactly is the role of the analyst?

First of all, the role of analysts is definitely very important. Some people say that analysts are like the lubricant of the capital market, keeping it running at a high speed. The author thinks it is very appropriate. In addition, analysts also provide investors with investment information, thinking methods, and analysis methods, and play the role of educators and guides. Still, investors should not go to the other extreme. Using analysts as investment nanny, you cannot "invest on your own" without analysts. There are many investors who can't live without "calling orders" and don't know "what to do". This should not be the case. From analysts' articles and explanations, investors can understand the capital market, learn analytical ideas, interpret economic phenomena, master capital management, and control investment mentality. This is the value of analysts.

Let's talk about calling orders. After calling out an order, it may be very reasonable if it is based on the analyst's own operating cycle. For example: an analyst who pursues the medium-term trend may make a profit after 2 weeks for the order he calls. But in the middle, this order may be baptized by various market conditions. For example, it may lose 20%. But analysts themselves make money. Another example: an analyst is good at ultra-short-term, and after opening a position, he will close the position within 20 minutes. At this time, he has no time to tell you, or because you just went out to drink a cup of tea, and when you come back, you will be notified 5 minutes ago that you should close the position. Now The situation has already reversed to a disadvantaged loss.

All of the above situations are lessons like blood, sprinkled in every corner of the capital market. What's more, many analysts themselves are not profitable, and it is already very powerful to achieve 7 wins in 10 games. Even some profit systems may have to endure 7 losses and 3 wins in order to achieve overall profitability. It just so happens that you missed the 3 times you were supposed to win, and did not follow up.

In addition to analysts, traders are even more mysterious roles. A trader who uses large funds to do various lines is a legendary figure.

In fact, these are two different concepts. Some traders can be analysts, and some analysts can also be traders. However, traders may not understand macroeconomics or technical analysis, but they may make money; analysts may analyze everything with reason and evidence, but they are always talking about it on paper. Traders will not take on the role of educating investors, and may strangle ordinary retail investors in the capital market. Although analysts have an educational role, if you follow him to make orders, he does not care about the risks, so "traders" will not do it Too much introduction.

The main purpose of this short article is to help investors understand the roles of analysts and traders, and correctly position these two roles. Avoid blind investment and fuzzy financial management.