Quote:
Originally posted by mishak
Well, it is difficult to stay cool when one trades on his/her own money. So, some people choose the career of analyst, they are hired by financial institutions and/or have clients on subscribtion.
Therefore I would like to deal with analyst who does not trade himself and apply my judgement to his reports.
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Exactly right. There are analysts and there are traders.
Generally speaking, analysts have no bottom line - sometimes they are right and sometimes they are wrong - however it is not easy to quantify the sum. Their main value to the trader is reflecting the sentiment. Better they are at this, more they are paid by the banks.
Traders are ones making money (or loosing it). They have the clear bottom line. Opposite to the fixed salary paid by the banks to the analysts, traders are paid some performance based commissions (often on the top of the base salary). Successful trader is making at least 10-20 times of what good analyst is making at any bank.
Some people understand technical analysis and they make money of selling their reports. There is nothing wrong with it providing somebody finds it useful. They admit they don't manage funds and this is fine.
The signal providers we were talking about were claiming they manage funds and signals are their "an additional revenue stream".
Also they are not analysts - they don't provide any reports you could "apply your judgment to" - they represent the black box issuing signals which one suppose to follow blindly (I can't see how else could one use such services anyway).