What Does a Trading Analyst Do?

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  • Written By: Nick Mann
  • Edited By: Jessica Seminara
  • Last Modified Date: 31 March 2020
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Working as a trading analyst involves performing stock market research and providing investors with advice. Success in this career usually requires a person to possess excellent math skills and the ability to communicate well with others. In most cases, a trading analyst will have a degree in economics or a related field, and a full comprehension of how the stock market operates. Some common duties associated with this position include communicating with clients, performing research, creating reports, advising clients and writing company reviews.

Communicating with clients and identifying client needs plays an integral role in this job. For example, a trading analyst might discuss what types of stocks his client is interested in buying. He will also need to determine what a client's budget is and any other pertinent information. This practice is a critical first step that a trading analyst must take before any other work can be done.

Once he has identified a client's specific needs, a trading analyst must perform the necessary research. In fact, researching is usually what he will spend the majority of his time doing. For example, if a client is interested in purchasing stocks from an electronics company, a trading analyst might research current trends in electronics and the overall strength of the company. Getting up-to-date information is important for clients as it allows them to make the best investment decisions.


In many cases, a trading analyst will also create reports or visual aids for his clients. Basically, these reports are designed to provide a graphical demonstration of investment options and possible returns to clients before they make or change investments. While an analyst will usually have a full comprehension of stocks and the market outlook, his clients won't necessarily understand all of the details. These reports tend to make it easier for clients to understand the necessary trends and concepts.

Advising clients on which stocks to buy or sell and when to buy or sell them is perhaps the most important aspect of this job. Along with reports, a trading analyst must provide his clients with straightforward advice concerning the stock market. Since some stocks are bought and then sold in a matter of hours, he must have an in-depth knowledge of market conditions at all times. The quality of his advice will ultimately dictate the strength of his portfolio selections and often his future client base.

In addition, a trading analyst will sometimes write company reviews. In some cases, a company will hire him to write a positive review which is designed to encourage investors to buy stocks. Consequently, this position also calls for a person with reasonable writing skills.


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