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

Thank you for your invitation. Analysts and traders are actually two completely different roles in the trading field. Although they all revolve around transactions, they have different functions, so the difference is still very big.

The good analyst mentioned by the subject, in fact, since I have been in business for so long, I have never come into contact with a good analyst, so that until now I don't know what the standard of a good analyst is.

First of all, the analysts we contact most often come from various social software, forums, and self-media. But these analysts basically talk by looking at pictures. What is picture talk? Just holding a trend chart, he can use a hundred ways to explain the rationality of this trend, no matter from the perspective of theory, shape, or basic information, there is absolutely no error, and it is 100% consistent with the trend. combine. This creates an illusion that he is God. He is invincible in the market, and you will never find a time when he makes a mistake. But this kind of flickering trading experience is actually not bad. Generally speaking, those who have been trading for a long time will gradually recognize this routine. So this type of analyst is definitely not a good standard.

What about the big names in the mainstream media? For example, a certain satellite TV financial consultant, or a well-known economic director, or a certain authoritative special analyst. Is this a good standard? I still find it hard to define. Because you can hear some things from their words, for example, a well-known celebrity said that "after analysis, the probability of gold will continue to rise in the future." or "The real estate industry may still be the main entrance of capital flow in the future" and so on. These words sound no problem at first, and roughly tell us that it is enough to be long on gold, and it is enough to hold real estate stocks. But what about when you think about it? These words contain some vague words such as "future", "high probability" and "possible". First of all, what time period is "future" after one month? one year later? Or ten years later, for example, gold is now 1800. According to him, as long as gold is higher than 1800 in the future, you can't say he is wrong, but what about the time? Ten years later, it will be higher than 1800. Wouldn't traders lose money in the tortuous market during this period? Then there are "big probability" and "possibility". He doesn't say dead. If gold falls in the future, he will at most say that the trend is not according to the analysis, but what can you do? People always say that this thing is not 100% , Therefore, these many ambiguous words are actually equivalent to saying nothing, and have no meaning for the judgment and reference of transactions. In fact, strictly speaking, they are meaningless in any aspect. So this type of analyst is not a good standard either. Then we have reason to doubt whether analysts have met this standard, or that this profession itself creates gimmicks and public opinion, and has no meaning in itself. Of course, this is just a personal opinion. Everyone has their own standards for what is good. Maybe I am a bit harsh.

Good traders, I have seen, at least by my standards, he is good, even very good. Let me share with you the appearance of this excellent trader I have seen. He is a futures commodity trader. I have seen his complete trading system, and then seen his complete six-year capital curve. In these six years He didn’t make money every year. He made a small loss in 2017 and kept his capital in 2018. The average annual profit in those four years was about 30%. This year, due to the trend of commodity futures, he has made a profit of 10% as of November. Sixty, the overall annualized rate for the past six years is 21%. This is the strongest trader I have ever seen in reality, and is currently a private equity fund manager.

When I mentioned this, many people were dissatisfied and made fun of me for being ignorant. I dare say that the profit rate is the strongest at this point. It is because I didn’t see my account, and it has increased five times a year, so you will be convinced. If you want to use this as a standard, I can only say that five times a year is too low. Not to mention, my colleague, with a transaction principal of 200,000 yuan, after one year, the account balance is more than 7 million yuan, which has increased by 30 Multiple times, this is 2015. But do you want to know the current situation of my colleague? I don’t know how much money he owes, but during the highest period of debt collection, there were more than ten calls a day, asking me where he was. These are the most real things that happened to me. matter.

So a good trader really has standards. First of all, the ability to control the risk of the account is by no means comparable to that of ordinary people, and the trader’s understanding of trading is also quite top-notch. It is written in the article that a trading system needs to have a positive expectation, and I am tired of talking about myself, but I still want to say it, because this is really the most basic threshold for a trader. An excellent trader told me a particularly vivid example. He said that a trading system is actually very basic for a trader. If trading is a war, then the trading system is the armor on the body and the weapon in the hand. A trader without a trading system is like a naked and unarmed person who is at the mercy of others. And even if you have a weapon, you can only say that you are a soldier. There is still a long way to go in terms of how to fight this war well, not to die in the war, to kill the enemy bravely, and to win the battle.

Finally, I would like to say one more thing. An analyst always claims to be the best analyst, but an excellent trader never easily says that he is a good trader. This may be the biggest difference.

Are you satisfied with this answer?