What are 'Technical Skills'
Technical skills are the knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as well as other specific tasks relating to technology. Those with technical skills are often referred to as technicians, such as audio technicians, electronics technicians or engineering technicians. Technical skills can also refer to the ability of a certain type of stock trader who uses technical analysis to buy and sell stocks.
BREAKING DOWN 'Technical Skills'Technical skills can refer to the ability to perform tasks that require the use of certain tools, whether tangible or intangible, and technology to complete them. In this regard, the knowledge in a technical skills area is seen as practical in nature as it allows a person to complete a designated task in a real, not theoretical, way. Given the growth of technology within the economy, the need for technical skills is likely to continue to grow.
Career Education or Training
The acquisition of technical skills requires specific education or training, often with a hands-on learning component. Technical skill requirements exist in most career fields, with the highest concentrations being employment in areas involving higher levels of scientific, technological, engineering and mathematical capabilities.
Within the stock market, trader participation in technical analysis requires the use of various technical skills. This includes the ability to determine what data is required and how it needs to be used to produce the required information. Most technical analysis regarding market activities is designed to take historical information and use it to predict future outcomes.
Technical Analysis in Finance
In finance, technical skills include an array of knowledge areas such as computing abilities, quantitative analysis and various stock market forecasting techniques. Technical analysis requires certain mathematical skills, some fairly advanced in nature, to produce charts and model trends to look at historical information to predict future movements. Technical skills in this context would refer to a person who possesses the knowledge and abilities to complete the tasks required to gather the data, produce a data model and perform analysis on the outputs.
For example, to produce a linear regression model for analysis, the analyst must have the skills and knowledge necessary to properly gather the data, perform any necessary calculations and use the data points to create a visual representation of the current and legacy data. Once the linear regression is complete, the analyst needs the skills necessary to extrapolate future activity based on the patterns identified in the model.