Supermoon Style: Will August’s Moons Impact Investor Behavior?

August will bring with it two full moons, two supermoons and a blue moon. Throughout history, the waxings and wanings of the moon have been thought to have positive and negative effects on moods, decision-making, and overall lives of individuals. Does it affect investment decisions? August this year will be a busy month for the moon, so it’s possible that some investment decisions will be influenced by the lunar cycle.

There is some belief among traders in using the phases of the moon cycle, particularly the full moon, to time the market and make profitable trading decisions. This belief has led to the development of trading strategies known as Full Moon/Moon Phases/Lunar Cycles Trading Strategies. These strategies involve analyzing the phase of the moon and making trading decisions based on that information, with the assumption that the moon’s phase can influence market behavior and certain moon phases may be more favorable for making trades.

While there is no scientific evidence to support the idea that the moon and its phases directly impact financial markets, some studies have explored the potential correlation between lunar cycles and trading performance.

A 20-year study conducted by the University of Lausanne showed that trading strategies based on the full moon and lunar cycles outperformed the overall market by an average of 3.3% per year.

Another study conducted by the University of Zurich found that trading strategies based on the lunar cycle outperformed the market by an average of 6.8% per year over a period of five years.

Despite these findings, it is essential to note that many experts consider the idea of lunar cycles directly influencing financial markets to be a form of superstition. The financial markets are highly complex and influenced by numerous factors, such as economic indicators, political events, and global developments. Relying solely on lunar cycles to predict market behavior may not be a reliable or scientific approach.

In conclusion, while there are some beliefs and studies suggesting a potential correlation between lunar cycles and trading performance, it is crucial for investors and traders to base their decisions on rigorous analysis, research, and established market principles rather than superstition or unproven beliefs. Investment decisions should be made with careful consideration of relevant data and market dynamics, rather than solely relying on lunar cycles or other non-scientific factors.

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Supermoon Style: Will August’s Moons Impact Investor Behavior?

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