Being a forex analyst is no simple matter. One has to have a lot of knowledge about the financial world and enough experience. So, what does the job of a forex analyst constitute and which areas does one need to be proficient in?
In the world of finance and forex, there is no career as lucrative and coveted as that of an analyst. An analyst should be well aware of the developments taking place in his/her specialized field and may even produce models to predict the value of currencies or do technical analysis of the data.
No doubt, it is no walk in the park to break into this field but with some understanding and education, one can better prepare oneself for this career. In this article, we take a look at what a forex analyst does and how one can groom oneself for the job.
Background and Education
Those who are looking to have a career as an analyst should be well versed in economics, mathematics, business, and accounting. Additional completed courses, like CFA, ACCA and others is a display of high competitive knowledge. Some other subjects that could also be of help include engineering, computer sciences, and physics. When most firms hire junior analysts, they look at these backgrounds and educational fields.
What makes an Analyst?
Those traders who have had a successful trading career of their own would have what it takes to become a professional analyst. Hedge funds and currency mutual funds are used to make forex trades for which they are always in need of account managers and traders who can make trading decisions. Forex analysts are also hired by central banks and international corporations that need to hedge against fluctuations in the value of currencies.
Based on the clients’ tolerance for risk and financial goals, some analysts also manage accounts individually and execute trades. One thing to note is that the position of an analyst involves high stakes. They have the responsibility of handling huge sums of money. The reputation of analysts and those that hire analysts depend on how well they can handle those amounts.
A forex analyst is required to meet some profit targets and work with a reasonable risk level. Analysts have to be well acquainted with trading platforms and some work experience in finance. Some analysts have to be effective not only when trading forex but also other financial instruments such as commodities.
What to expect as an Analyst?
An analyst has to be on their toes when it comes to acquiring information about specific indicators, currencies, trends, and news. They are required to do a lot of reading to keep up with the news. An analyst may also have to take on a bit of travel.
Analysts have to be proficient in reading and understanding statistics, spreadsheets, graphics, and charts. They are also expected to make presentations and reports about the financial market, which include historical analysis of data, forecasting, and results’ analysis.
The career of a forex analyst may be quite alluring from the outside but it is a profession that requires equanimity, enough financial education, some experience with the forex trade, and the ability to assess data. A headstart with core financial education lays down a good foundation for a later career. Analysts are always high in demand because of the nature of the work they do and the need for them in firms and financial institutions.