Superstitions

 I have been talking to one of my friends today. He said he is going to close all of his shares before Friday the 13^th.

I have asked the reason.

I was expecting to hear things like the following items:

• ·         The factory data in the US is not as good as predicted. ( $GM stock? )
• ·         The China-US relationships. ( #BABA stock? )
• ·         Slower economy recovery. (#OIL price )
• ·         Cryptocurrencies regulations. ( #DOGE )

But he continued, I will reopen the next Monday.

I asked the reason and he said he saw a dream. Also, it is Friday the 13th!

How superstitious are you in trading?

This question is important because if too many people believe in the same thing, then this may cause an impulse wave or corrective wave. This is the main logic behind the Eliot wave and other harmonic trading analyses.

How superstitions can affect the stock markets?

1.      Friday the 13th

In the old days, the effect of superstitions was too high as on Friday 13^th we may have seen fewer trades and fewer returns/losses. But nowadays trading is automated, So, I say don’t worry about it.

2.      Witching hours!

Really! Between 2 and 3 PM is witching hours?

But we are trading globally how this even works? A witching hour here is not a witching hour in the US. So again, Not a chance we listen to this.

3.      Sell on the first day of Jewish New Year and buy on Yom Kippur

I am not sure about this one either. My Jewish friend says it works most of the time to sell on Rosh Hashanah!

My question is, what about Christmas? Oh, wait are the markets open on Christmas? At last, we can sell our Cryptocurrencies. #BTC

The list goes on depending on different cultures.

Some believe their lucky number or days is 7. Chinese say it is 8. Many people call 13 bad luck for trading.

The effect of Superstition in online trading is getting less and less due to the global village phenomenon. But for the individuals who are believing in it. These days will be days with a fewer turnaround.

So, what should we do?

Educate yourself, learn different types of trading styles e.g Technical, Fundamental.

By "Nina" eToro username: Trendchaser