Stock Picker Training
A stock analyst (or financial analyst) is a person whose job is to analyze stocks. A buy-side analyst looks for stocks she believes will go up in value to buy, and a sell-side analyst looks for stocks she believes will go down to sell short.
Stock analysts enter the field with a wide variety of educational backgrounds. While most have a traditional finance background, in 2010, many analysts have a technical background in the sector they specialize in. A biotech sector analyst might have a degree in biology, or even be a medical doctor, for example.
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Educational Background of Stock Analysts
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Traditionally stock analysts entered the field with an educational background in finance, accounting or business management, and senior analysts often had MBAs, but more and more analysts with a specific technical background like electrical engineering or medicine are finding success. This is because the average analyst with a finance background could not make accurate assessments of new company-relevant data like new patents or clinical trial results.
In larger organizations, some stock analysts work as part of a team, with each team member being responsible for analysis of a particular area of the company, rather than an entire company or several companies.
Training for Stock Analysts
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Almost all of the major brokerage houses and investment banks have in-house training for their junior stock analysts--in most cases, both an initial training and a continuing education requirement. The extent and length of these trainings varies widely based on specialty and background.
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Becoming a Stock Analyst
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It is not easy to become a successful stock analyst, since the educational requirements are relatively high. However, according to the U.S. Department of Labor, it is potentially a growing career opportunity, and until quite recently the financial industry had been growing and hiring more people every year for almost a decade (as of 2010).
Getting Your Foot in the Door
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There are, however, a couple of things you can do to help get your foot in the door. First, consider studying for the Series 7 and Series 63 exams or undertaking the Chartered Financial Analyst (CFA) program. Passing these exams demonstrates an extensive knowledge of the financial industry and is regarded very positively by hiring managers. Second, highlight your technical background. Whether it is that biology minor back in college or your experience in writing software, focusing the hiring manager's attention on the technical skills you bring to the job will help you stand out from the crowd.
Pay and Promotions
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Salaries for junior stock analysts start from about $35,000 to $40,000, depending on qualifications. Senior stock analysts can make six figures, and it is not unusual to see a very successful stock analyst promoted to a more direct executive or management position in a company.
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References
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