Traders’ Superstitions: Should you be Afraid?
One might wonder whether superstitious traders ever lose money in the trading markets. Just like any other field, the trading sector has some superstitions that have meaning but might sound ridiculous as well. Since rituals may be healthy to some people, it is not right to judge those who believe in the trade superstitions. Below are some of the prevalent trade superstitions.
Never Trade the First 30 Minutes
Traders at the stock markets have a superstition that inhibits them from participating in trade for the first 30 minutes. Although the current exchange markets are very busy, some superstitious people may not risk trading their shares in the first 30 minutes for fear of bad luck. It may sound humorous considering the fact that rates may drop as one waits for the 30 minutes to pass while as on the other hand, it may work for the better if the “waiting time” finds an increase in the rates. Either way, some people have no problem with this superstition, but try it the next time you visit your favorite Forex broker!
Never Go Back into a Stock the Third Time
If you have never heard of the old saying that goes “Avoid sticking your hand in the cookie jar too many times”, well, now you know never visit a stock for the third time. This superstition warns the traders that one trick cannot work repeatedly. Change of plan is critical especially when trading in the highly volatile stock markets. Although some people still regret for missing their opportunities given that some people have pocketed huge moneys from playing the same cards repeatedly, now you have a choice to believe in the traders’ superstition or hope for the best on the third time.
The Maiden Sacrifice to the Volcano
Even for a superstition, could you believe in the practicability? Some people still hold the belief that in the times of market turmoil sacrificing a maiden to a volcano will please the market gods. As absurd as it sounds, there are those who believe that the sacrifice spares them of wrath but to their surprise, the stock rates still rally. The primitive thinking does not help anymore in the modern corporate world especially if one has luck of finance trading.
Never Sell a Stock Crossing $90
For the superstitious traders, despite their desire to convert their stock into cash, they may not sell their stock crossing $90 per share for fear that they always raise to $100. This belief is similar to that of options expiration that inhibits a trader from selling stock at the monthly stock options expiration dates especially if it rhymes with the third Friday of a month. No matter the returns of the stock at such times, superstitious traders will not risk selling their stocks hitting the $90 mark.
Personally, I do not undermine the applicability of traders’ superstitions because nobody has real proof that they actually work (after all they are just superstitions) but I may not waste my opportunity for their sake. Although they may seem silly and surreal, some traders out there still treasure them dearly.