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What Does a Research Analyst Do?

Posted on November 14, 2018 11:12 am;

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Within the financial investment industry, there are many positions and business types that utilize the skills of a research analyst. The position is aptly described by the title as in “research” and “analysis” which is basically what the research analyst does. The position calls for the collection and analysis of data appertaining to public companies and corporations that have securities on the stock exchange.

Doing the business

The actual work of the research analyst and their team involves investigation of the businesses in question with the aim of predicting how their share prices are likely to perform. Historical data, current and predicted political decisions, and a whole raft of other data may influence these values, so the task isn’t always a straightforward one. A good research analyst is one who digs deepest and leaves no stone unturned because the quality of the data they collate is likely to have a direct effect on the desired outcome.

A fine balance of technical skill and creativity

Along with a wealth of financial skill and a sharp analytical mind, a good research analyst is one who is able to apply a certain amount of creativity to their recommendations. Their remit involves taking the raw data and applying it to the market with the best financial effect. This is a big responsibility especially when we consider that they will literally be “playing with” other people’s money.

Ethical individuals and analytic research teams are more likely to communicate realistic and minimum risk recommendations to investors looking to make their gains over the longer term.

Being thorough

Due to the huge number of variables and factors that can impact on market values, successful research analysts need to be among the most thorough and diligent individuals in the industry. A huge amount of accountability and responsibility accompanies the trust that is invested in them. To make a successful career out of research analysis, individuals need to work more on average performances over time than spectacular short-term gains.

Riding the learning curve      

No one is going to get it right every single time and expertise in applying data research and analysis can only come through experience. Mistakes will surely be made by those who enter into the industry on the lower rungs of the career ladder. The ultimate success stories, however, will belong to those who first owned and then learned from the mistakes that they made. One way to speed up career progression is arguably to undertake a professional finance qualification – and you can find out more about the range, of course, we offer on the Morgan International website.

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