Dive into Stock Market Superstitions and Stay Ahead!

Discover the Myths: Dive into Stock Market Superst

Feb 26 2023

Dealing in the stock market is not recommended for people who tend to get stressed. This is an area where it is impossible to predict what the day will bring and what the color of the screens will be at the end of the trade. Investors' only hope is that their financial analysis and gut feelings will work in their favor - and their investments will bear fruit.

All over the world the people who trade in the stock market - whether they are independent traders with their own money or investment managers - know that the goal is the big money, the mecca. Therefore, one of the common characteristics of Wall Street and the local market, besides the desire to make big money, is a variety of metaphysical methods that are supposed to influence the higher power, and help make money.

Here are four metaphysical beliefs that investment traders and investment managers use - from opening computer systems in a certain order, to complicated mathematical calculations.

There is almost no football team that doesn't have its mascot - whether it's chickens that run around on the field before the game, or special socks that the players wear. It turns out that some of the stock market people also have mascots - for example, the lucky shirt.

Superstitions represent a failure to distinguish between the physical world and the psychological world. The understanding that it is not possible through will and other spirit to bend events that do not depend on us, is considered part of our maturation as human beings. Despite this, we still hope that there is some magic in the world that will allow us to control and steer the outcome of events as we wish. One of them is a successful issuance of shares, or building an investment portfolio that will not lose money at all.

This is where statistics come to our aid. When we experience a series of positive events that all have one common denominator, such as wearing the same shirt, we begin to believe that by using that item of clothing we have been able to bend the events to our will. We believe that the IPO was successful not because of the quality of the company being issued, but because of the pink shirt the CEO wore. You can understand why we tend to think that way. It makes our lives easier - we don't need to be good and professional, just wearing a certain shirt is enough for our wish to come true.

During the time of Federal Bank Governor Alan Greenspan, traders perfected the method and tried to reach a high level of significance regarding the American economy. Thus, there were those who tried to estimate that if the governor showed up on the morning of the interest rate announcement wearing a yellow shirt, this means that he does not intend to raise the interest rate, or if his document portfolio was in his left hand, then his economic speech should be optimistic. What a shame that statistically it only worked in some cases, and in most of them the forecasters were deceived.

A few years ago, a senior investment manager agreed to reveal to Def. The page was handwritten and dates appeared on it. "These are not good days for trading," he wrote. In other words: these days it is really not recommended to perform any action in the stock market, as the only result will be losses.

There are some dates you should stay away from the stock market. The first to recognize the dates was Willem Gunn. Gunn was 24 years old when he started trading stocks and commodities. In 1908 he moved to New York and opened his own brokerage firm. He failed in his early trading many times, and lost all his money several times.

In the early 1950s, he stopped trading and began writing instructional books on technical analysis. According to these analyses, Gunn claims that there are some dates where there are only losses. These books brought Gunn much publicity, but many disagree with his predictions, including his son. However, the debate as to whether Gunn was a legendary clairvoyant or a publicist who made his fortune selling books and lectures remains unresolved. Gunn himself claimed to have earned more than $50 million from trading in the stock market.

The theory of technical analysis is already widespread in the stock market - the technicians are the ones who try to predict how the rates will look in the future according to trends from history, based on mathematical calculations. But there is another mathematical calculation, somewhat surprising, that some believe is the key to the million dollar question.

The golden ratio, or golden ratio, is a number (1.6180339887) represented by the Greek letter Phi (Fi). This mathematical constant appears in nature in many independent places, and it represents the relationship between measurements and sizes. For example, the angle of the arrangement of the leaves around the stem is a golden angle, as well as the location of the seeds in the apple and even the ratio between the bees in the hive. According to many, his high presence in nature is the proof of the act of creation.

So if we have the golden number, why wouldn't it also bring some money? With the help of the mathematician Fibonacci, who invented a mathematical series of numbers, some people in the stock market try to predict how the prices will look in the stock market, and even estimate what the correction rate will be after the increase.

It is important for all of us to have a little order in our lives - to know when we wake up, what tasks are assigned to us at work, when we eat lunch and what time we go to bed. But is the particular order in which we operate each day of any importance? There are those who think so.

A more modern superstition deals with a sequence of events that affect everyday reality. The most dramatic sequence of events, at least according to some people's belief, is the order in which computer systems are opened after turning it on. According to them, the systems should be uploaded in a certain order, and God forbid it should not be changed. This order will ensure an active and profitable trading day, otherwise it is doomed to failure.

The construction of the order is individually suitable for each merchant. One of the traders once claimed that the basis of this belief is the insight that "a positive thought creates a positive reality", and by raising the computer in the particular order he promotes the positive thought.

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Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.