What do you do if you want to evaluate the effectiveness of technical analysts?

Track Performance: Keep a close eye on how accurate their predictions are compared to actual market outcomes. This will help us identify who consistently makes successful calls. Prioritize Risk Management: It's essential to pay attention to how well analysts manage risk in their recommendations. Are they balancing potential gains with potential losses effectively? This is crucial for long-term success. Encourage Continuous Learning: I would recommend encouraging analysts to stay updated on the latest trends and techniques. The more they learn, the better equipped they'll be to navigate the ever-changing market landscape

Start by defining clear performance metrics such as accuracy of predictions, risk-adjusted returns, and consistency over time. Compare their forecasts against actual market movements using statistical methods like backtesting or regression analysis. Consider factors like market conditions, trading costs, and the analyst's track record. Additionally, gather feedback from clients or stakeholders on the usefulness of the analyst's insights. Continuously monitor and adapt the evaluation process to ensure it remains relevant and comprehensive.

You need a good grasp of TA basics like support and resistance levels, trend lines, moving averages, and chart patterns. These are essential for evaluating whether an analyst's decisions are well-informed or just guesswork. TA is very important, but also don't underestimate the impact of significant news releases, economic data, and geopolitical events on market sentiment and price movements.

Core concepts of TA could be: Support and Resistance level Trend Lines Moving Averages Chart patterns These tools are fundamental to any TA specialist's toolbox. Without this knowledge, it's difficult to determine if an analyst's predictions are based on sound analysis

?? If a Trader / Technical Analyst wants to Evaluate his own Effectiveness let's say then he should have I think atleast 7 - 8 Trades Working out of let's say 10 Recommended by him / Traded by him . ?? And the Profits from the Winning Trades should be Greater than the Losses incurred from the Non - Profitable Trades . The Trades can be Swing / Intraday or both . ?? So , I think in my Opinion both the Winning Ratio and the Total Net Take Out corresponding to the Winning Ratio Matter .

Absolutely! I want to see a good history of trading and how profitable the firm has been under the advise of the technical analyst. If they manage trading accounts, I want to see 3 months to 6 months proof of work, and of being in the money.

If there is one thing you want to look at. This is it! Track record. Audited, Real and Trustful. Do not waste your time watching YouTube videos. If you have not worked with a coach, you don't know what it takes to beat the markets and make money consistently. This is 25 years of experience talking. You need to find someone who is educated, qualified and a regulated adviser. Trading is not different from learning any other skills that make money if it be a doctor, plumber or trader. Unfortunately, there are no universities that can teach trading. It takes time, effort and money and the biggest problem in learning to trade is to find someone who has a track record and is ready to coach you.

I we work on past record and performance to enable me work with present situation at hand, beside base on experience has show that moat time following past record on a project is not a good approach in some project due to economical and environmental increment.

One of the things I always test in interviews is the ability of the candidate to effectively manipulate a simple excel spreadsheet. Given the amount of time a technical BA is expected to spend in Excel, I have found putting them in front of a sample CSV and asking them to remove duplicates, find how many entries have a certain column filled with a certain value, or transform a date column from UK format to US format gives straight away a clear and impartial view on "how technical the BA is".

Increase your analytical skills and apply them. This will still not produce results! You need a plan to trade. This plan will include analysis, observation, decision making, planning, skill development, experience. It will take a life time if you don't find a coach with a track record. It is absolutely impossible to find one. Try google and YouTube if you don't believe me. None of these gurus have done anything concrete.

The technical analyst must be conscious of risk capital. Profit maximization is not the goal; the goal is risk adjusted capital/asset management for risk adjusted returns. The risk capital allowable per trade must not be exceeded and trades well timed and entered for success maximization.

Yes. Good one. This is important. Your strategy should fit your psychology or you have to build your psychology around your strategy. One of the hardest part of any trading system is to take losses. I have not seen anyone who has taken 3 losses in a row and was able to come back. This is a very difficult skill to learn. WHY? because there are 95% false promises and the reality how money is made in trading is hidden. It is not a knowledge that is available on YouTube or Google. You will know this statement to be correct once you trade for 10 years. Once you do , message me to thank me.

Absolutely! While there are foreseeable returns in the higher time frames and a good market structure, technical analysis must focus on the now, depending on trade disposition (swing or intraday). You want to see lower time frame confirmations and alignment with higher time frame structures, otherwise use adjustable stop losses and risk covers above entry points in already successful trades you are following the trend for further capital gains. You must also adjust trading strategies to suit market volatility, and know when to leave and stay on a trade. That's the discipline.

Aqui est?o alguns pontos a serem considerados: Clareza na Mensagem: A mensagem sobre a importancia da adaptabilidade é transmitida de forma clara e direta. Relevancia para o Contexto: O texto contextualiza a adaptabilidade dentro do ambiente dinamico dos mercados financeiros, destacando sua importancia para o sucesso do analista técnico. Exemplos Concretos: A sugest?o de avaliar a capacidade de adapta??o observando como o analista responde a eventos inesperados ou mudan?as no sentimento do mercado fornece um método tangível para avaliar essa habilidade.

This is not always straightforward to find, but is often a very good indicator of the candidate's effectiveness in a company structure. However, asking for the opinion of the previous manager, should they be a stranger, will lead to a subjective view (one way or the other). Summary: If I know someone who worked with the candidate, I will ask - otherwise not.

I recently experienced a CV being referred to me, leading to an interview. This CV unfortunately was (probably) written by ChatGPT or a similar tool, perfectly fitting the job description - almost too well. We very quickly identified this person to be a complete fraud, and stopped the interview. To mitigate this, I could root towards a simple screening phone call (5mins) with a (very) simple question - or simply work with another recruitment agency.