Difference between analyst and trader

Difference between trader and analyst is huge, it is like riding a bicycle and driving a car, although it is necessary for a trader to b good analyst, but alone analytical skills doesn’t define his success in trading.

Let’s talk about analysts first, well there are two types of analysts in the financial market, one is a technical analyst and other is a fundamental analyst.

Technical analyst

Technical analystís whole study is based upon pseudo-science, they use this methodology for predicting the direction of prices through the study of past market data with the help of charts so thatís why technical analysts also called as the chartist.

Fundamental analyst

Fundamental analysts do a wider research that is made up of the study of underlying forces and changes that can affect the current situation or productivity of an economy, a country, an industry or a single company.

So who is a trader?

A trader is who speculate on prices with the help of technical and fundamental basis and also gathering information by analyzing economic and political information which can affect the price of a particular asset and also by keeping in mind crowdís behavior. He/she trades on his study by analyzing his/her potential reward, uses a perfect money management system and keep check on his/her emotions during trade period and generate a maximum reward from a particular opportunity.


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So what is the difference between a Trader and an Analyst?

  • An analyst can give analysis at any given point of time on whereas a trader has to plan his trade, the right time to enter and exit considering the given circumstances.
  • Analysts are mostly diplomatic when it comes to giving opinions, they generally use such words (if, but, then, possible, in case), whereas trader is aware of the fact, if he doesnít get it right, he has to pay the price.
  • Analysts are mostly rational in their approach, whereas trader becomes irrational in their approach with a particular trade. Irrationality generally makes the suffer in trading
  • An analyst can pick up any stock or any other asset class and give his views but a trader has to choose best suitable stock or asset class
  • Ana analyst can have easy and relax life but limited as well, but trader has to go through lots of suffering but he can lead to mind-boggling and limitless life…

So the conclusion is

A trader can be an analyst but an analyst cannot be a trader.


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  • Adif Khan

    foresightedness is what i find in your articles . a fine work of intellect mind .

  • Shri Bhagwan

    every trader and analyst must read very useful

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