A good analyst may not mean a good trader

[henmark]

I think a good analysts can make better trading decisions because of his skills. He/she will be able to analyse the markets and study various factors which can make them take informed decisions. Yes, there will still be some analyst who might not be able to make profits even after spending hours in analysing the markets. This does mean that it is not really that easy to make profits even if you have the skills. Trading will always be difficult to the analyst as well as to the average joe. You can't always have guaranteed profits when it comes to trading.

But I am sure, a good analyst can find ways to reduce the losses and still wind up in profits. Good analyst will always prefer holding for longer duration as it gives them room to make their own study and not rely on market factors.

[_act_]

I think a good analysts can make better trading decisions because of his skills. He/she will be able to analyse the markets and study various factors which can make them take informed decisions. Yes, there will still be some analyst who might not be able to make profits even after spending hours in analysing the markets. This does mean that it is not really that easy to make profits even if you have the skills. Trading will always be difficult to the analyst as well as to the average joe. You can't always have guaranteed profits when it comes to trading.

But I am sure, a good analyst can find ways to reduce the losses and still wind up in profits. Good analyst will always prefer holding for longer duration as it gives them room to make their own study and not rely on market factors.

To be able to analyze the market, that does not mean the analyst will follow the trading plans or strategies. Analyses is totally different from trading. A trader need to make good analyses and which is just one aspect of trading but there is many more to trader. Although being a good analyst will increase the chance to win but not all analyses will be accurate, so the analyst need to have good trading plan so to make profit in long term.

[mindrust]

Depends on the analysis i would say. Technical analysis is mostly fugazi though I can agree with that. I dont know a single person who became rich by staring at the charts. None. For some reason, we have thousands of technical analysis experts but also for some weird reason, they are all poor. I used to be very big on ta, I can’t lie. It is fun too. Pretending that it is possible to see the future. Like having a superpower. No small time trader can guess what’s going to happen next. Only the whales can do that because they are the ones who draw the charts with their movements in the markets. The moment you wake up to this truth, you’ll depend less on charts and more on the fundamentals. Hence the name, fundamental analysis. If the fundamentals are bad, no amount ta can save an asset. It will eventually go to zero. That’s all you need to know.

[justdimin]

The situation of the crypto market now has almost moved from technical analysis to fundamental analysis, whereby economic news and crisis around the world (mostly on top countries and institutions) has made the direction of the crypto market to be totally unstable and unpredictable for technical trading analysis. Traders relying solely on technical analysis will face losses if they don't pay close attention to fundamental analysis, cause a channel I follow on telegram gave an analysis that before the hit on $110k, we will see around $86k, which didn't happen, not because he wasn't good in his analysis, but because news and speculations around the world made his analysis go void.

It does not always meant that a good analyst is just depending on the technical analysis. He can master the fundamental analysis as well and a combination of both technical and fundamental is what will make him a better analyst. We can't just call anyone a good analyst if he masters only the technical. I am sure that is important but is of not that use if fundamentals are not included.

As you said, recent markets are bound to follow more fundamentals instead of technical and anyone who solely depends on technical might end up in loss in such situations. A good combination of technical and fundamental will make anyone a good analyst. They also will posses years of experience before starting to make good profits so anyone with ample of practice can become a good analyst.

[bigimann]

I thought of this today few hours ago and I decided to also include it as one of the topics I will post today on this forum.

What if someone is good in analyses and he is an analyst, can such person be losing while trading?

Or a good analyst will prefer swing trading and holding than scalping and day trading which are the riskiest trading types?

If you can use some or more people as an example in your post, I will really appreciate that.

First of all, I would want you to know that there's no guarantee with trading, no matter how good of a trader you are. The only advantage a good analyst and a good trader has over a mediocre is a higher win proportion.

To answer your question, a good analyst can make a good trader quickly than you can imagine. And that's because trading is a game of analysis and accurate predictions.

Peace out ✌️

[dunfida]

The situation of the crypto market now has almost moved from technical analysis to fundamental analysis, whereby economic news and crisis around the world (mostly on top countries and institutions) has made the direction of the crypto market to be totally unstable and unpredictable for technical trading analysis. Traders relying solely on technical analysis will face losses if they don't pay close attention to fundamental analysis, cause a channel I follow on telegram gave an analysis that before the hit on $110k, we will see around $86k, which didn't happen, not because he wasn't good in his analysis, but because news and speculations around the world made his analysis go void.

It does not always meant that a good analyst is just depending on the technical analysis. He can master the fundamental analysis as well and a combination of both technical and fundamental is what will make him a better analyst. We can't just call anyone a good analyst if he masters only the technical. I am sure that is important but is of not that use if fundamentals are not included.

As you said, recent markets are bound to follow more fundamentals instead of technical and anyone who solely depends on technical might end up in loss in such situations. A good combination of technical and fundamental will make anyone a good analyst. They also will posses years of experience before starting to make good profits so anyone with ample of practice can become a good analyst.

Lately the market seems to be driven more by fundamental factors than pure technicals global events like inflation data geopolitical conflicts policy shifts from central banks and institutional behavior are now dictating short term market movements far more than chart patterns this has made it very difficult for technical traders who rely only on indicators and patterns because the market can easily invalidate a setup with one unexpected headline.

A strong analyst today has to be a hybrid who can interpret both the charts and the fundamentals technical analysis helps you find entry and exit points but fundamentals tell you the “why” behind price movement when an economy is unstable or when big institutions are buying or selling these actions create momentum that technical patterns alone can’t predict. This is why risk management and flexibility are more important than ever instead of trying to prove that one method is better traders should adapt to what the market is currently reacting to in times like these it’s safer to watch global economic trends regulatory news and institutional sentiment before trusting chart formations combining both aspects with patience and discipline is what separates consistent traders from those who get caught off guard by unexpected news.

[allthebitandbobs]

Depends on the analysis i would say. Technical analysis is mostly fugazi though I can agree with that. I dont know a single person who became rich by staring at the charts. None. For some reason, we have thousands of technical analysis experts but also for some weird reason, they are all poor. I used to be very big on ta, I can’t lie. It is fun too. Pretending that it is possible to see the future. Like having a superpower. No small time trader can guess what’s going to happen next. Only the whales can do that because they are the ones who draw the charts with their movements in the markets. The moment you wake up to this truth, you’ll depend less on charts and more on the fundamentals. Hence the name, fundamental analysis. If the fundamentals are bad, no amount ta can save an asset. It will eventually go to zero. That’s all you need to know.

I do not completely agree with this. I do not see technical analysis as a fugazi, instead it had made me earn some nice profits just by starring at the charts. Technical analysis is a game of patience. You might be able to identify multiple patterns on the same day but will all those patterns work out? I doubt so, but few of those can really work out because I know there are hundreds of other traders out there who believe in the technical and respect the patterns they see on charts.

We can't just use one or two indicators and state ourselves as a technical analyst. We need to combine a few indicators along with tracking volume and drawing some basic patterns on the charts. Even the basic support and resistance levels work for me sometimes and that is the reason why I still believe in technical analysis.

[Hamza2424]

Or a good analyst will prefer swing trading and holding than scalping and day trading which are the riskiest trading types?

If you can use some or more people as an example in your post, I will really appreciate that.

A good analyst can't resist the urge to invest all the time, he will trade, he will hold, he would do both, and if possible, other kinds of things too haha.

Because knowledge is power, but if a person has the knowledge and he can't hold it peacefully without getting burned, then that's really a disastrous thing for that person.

But it does not mean any analyst trading and holding or investing is a disaster, they just can't stay idle doing nothing, they love to trade.

[M47AK16]

First of all, I would want you to know that there's no guarantee with trading, no matter how good of a trader you are. The only advantage a good analyst and a good trader has over a mediocre is a higher win proportion.

To answer your question, a good analyst can make a good trader quickly than you can imagine. And that's because trading is a game of analysis and accurate predictions.

There might be no guarantee but with decent mindset and ability to reduce risk, one can manage to make good profits in trading by cutting losses. Trading is a complicated thing and earning money is not always that easy but a good analyst will know how to cut his losses so he can maximize his profits. It is not just about making profits but cutting down our loss because in trading not every position will be profitable.

Sometimes we need to take impulsive decisions to close the trade before it starts denting our portfolio. A good analyst will have good knowledge about managing his wealth so he can be considered as a good trader. We have seen a lot of people making a fortune out of trading and those people have made trading as their full time career.

[Rufsilf]

First of all, I would want you to know that there's no guarantee with trading, no matter how good of a trader you are. The only advantage a good analyst and a good trader has over a mediocre is a higher win proportion.

To answer your question, a good analyst can make a good trader quickly than you can imagine. And that's because trading is a game of analysis and accurate predictions.

There might be no guarantee but with decent mindset and ability to reduce risk, one can manage to make good profits in trading by cutting losses. Trading is a complicated thing and earning money is not always that easy but a good analyst will know how to cut his losses so he can maximize his profits. It is not just about making profits but cutting down our loss because in trading not every position will be profitable.

Sometimes we need to take impulsive decisions to close the trade before it starts denting our portfolio. A good analyst will have good knowledge about managing his wealth so he can be considered as a good trader. We have seen a lot of people making a fortune out of trading and those people have made trading as their full time career.

Being impulsive will not do any good in trading, that will only create a reason to lose due to wrong decisions. Its not being impulsive mate, its a back up plan that needs to be done once the trade turns into a threat and ruin our portfolio. But I have to agree that a good analyst can be a good trader in the making. They already have an edge towards making a successful and profitable trade, compared to those who are still learning the process.