there is a reason why more analysts arent succesful traders. This is mainly because they are cheating scoundrels. They have no more knowledge of what is likely to happen than your average guy in the street, but cunningly have bloomberg hidden under their desk and can therefore pretend to have an opinion on the economic releases of the day (sent round via emails), while at the same time as watching lots of porn online. In short, useless. Yours Analyst Hater
hummmm, analysts somehow didn't get picked to be in trading, or chose to go that route. pay is excellent, benefits, travel and the associated power that they have over their target companies is really something... why would anyone ever want to be one? ((uh,, where do I sign up?))
find me an analyst that makes money, and I'll find you a bear that reads the paper, smokes a pipe, tells involved jokes and sits on a toilet in the bathroom. Yours Sceptical Trader p.s I know at least one analyst who trades - not only is he crap at that job, I could probably write a list of at least 200 other jobs at which he would be equally useless.
I think the traditional "IB analyst" idea is a bit dated. I think the whole idea of the boutique firms (ie biotech.medical research) adds more value. Rather than have an MBA crunching nubers, and interviewing ceo's, these boutiques focus on that, PLUS have medical industry contacts in hosptials and clinics that give first hand info about new drugs, etc.... It gives them a major edge in timing and accuracy This is just an example..
Look at it this way... The infamous marketsurfer is one. He posts his analysis on this site and he's supposedly making money. ( Sorry to surf, for putting him in the spot ) Also, his figures he gives out are based on Cash Indexes which cannot be traded so it's an analysis and not a trade log. Also his "rare" ( How many stock picks would be considered "rare" ) stock picks are working well, which is basically the same thing as analyst recommendation... Before I ask for a bear that sits on a toilet with a newspaper (... LOL... ) what do you think?
I was once on a flight with an analyst sitting next to me from Dusseldorf to London Gatwick - this is true - and we encountered a small bit of turbulence. The plane rocked from side to side and shot up then nosedived down as the pilot fearlessly battled with the elements. I must admit, at one point I noticed that for just a split second, I felt something that can only be descibed as nervous. Just a second mind. The analyst however, started crying the minute we hit the rough stuff, weeping right into his drink, and blubbering on to me about how his life was a 'lie' and that he talked shit for a living and copied things he read in the papers. He raved about 'not wanting to die' before having done some 'genuinely useful' work. He told me that he and his colleagues mostly 'had their heads up their asses' and 'didnt know jack shit'. When I asked him if his skills were transferable to some other job he replied: 'no fuckin way, I have no skill'. I think that says it all. Yours A concerned Trader
I must say that I have to laugh at all of the posters on this thread that are so ignorant to think that equity analysts on Wall Street actually "trade". Give me a break.
Well, you can laugh your head off pal, cos I dont think anyone is suggesting that. Go on....laugh the damn thing right off your shoulders. Yours Disgruntled Trader