What does a Technical Analyst do?

Malcolm Tatum
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum
Technical analysts may help investors make decisions about what stock to buy.
Technical analysts may help investors make decisions about what stock to buy.

Technical analysts engage in the process of examining data that is relevant to a given situation and developing recommendations that are anticipated to produce desirable results. In order to accomplish this goal, the technical analyst will make use of the process of technical analysis, which is essentially a structured method of identifying and evaluating key factors and elements, and qualifying the most efficient use of resources on hand.

Technical analysts exam data that is relevant to a given situation and develop recommendations that are anticipated to produce desirable results.
Technical analysts exam data that is relevant to a given situation and develop recommendations that are anticipated to produce desirable results.

When it comes to the work of the technical analysts in the financial market, the technique focuses on helping investors to make decisions that will result in the greatest yield. The technician that makes use of this analytical approach will consider current and past market conditions and project a variety of different sets of future events related to the market. By developing these scenarios, the analyst can make recommendations about what stock to buy, when to buy it, and at what point the stock should be sold in order to achieve the highest return on the investment.

There are two schools of thought when it comes to the work of a technical analyst in the financial world. First, there are those that see this analytical approach as being grounded in simple facts and common sense. Thus, the technicians are understood to be following a logical thought process that has an appreciable chance of accurately predicting future market movements. There are investors all over the world who consider the technical analyst to be key in the task of making wise investments.

At the same time, there are those that dismiss this approach to market evaluation as being nothing more than a waste of time. The technical analyst may be considered to be a few steps removed from the status of a charlatan, with critics of the process even branding the methodology as being a pseudoscience or even comparing the approach to parlor magic. When this is the prevailing thought process, technicians that make use of technical analysis are considered to be non-essential to the investing process.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including PracticalAdultInsights, and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including PracticalAdultInsights, and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

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Discussion Comments

anon136491

financial marketing is only one "realm" of technical analyst can do. they can also be more of a computer forensics kind of person. especially a technical analyst that works for the federal government.

anon41068

Good answer, I really need it. Thanks!

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    • Technical analysts may help investors make decisions about what stock to buy.
      By: naypong
      Technical analysts may help investors make decisions about what stock to buy.
    • Technical analysts exam data that is relevant to a given situation and develop recommendations that are anticipated to produce desirable results.
      By: Arto
      Technical analysts exam data that is relevant to a given situation and develop recommendations that are anticipated to produce desirable results.