Traders tend to look for signs, patterns, and hidden messages in financial markets. Some of these theories are weirdly accurate, others are completely insane.
So, are trading superstitions real? Let’s test the 5 most-believed ones and find out.
1. “Sell in May and Go Away”
The belief: The stock market underperforms during the summer, so you should cash out in May and come back in the fall when things heat up again.
Fact-check: This idea actually has some statistical backing. Historically, markets tend to slow down in the summer because big institutional investors go on vacation. Less liquidity = weaker performance.
However, if this rule worked 100% of the time, every trader would just chill on a beach for four months. But markets sometimes rally during summer. Example: summer 2023, when the S&P 500 surged nearly 10% in June-July, with the Dow up 8% and the Nasdaq soaring 11% — defying the “Sell in May” myth.
Verdict: FALSE
______________________________________
✍️
Pro Tip: Instead of running away, use IQ Option’s price alerts to track when your favorite assets hit key levels.
______________________________________
2. The Market Follows the Moon Cycles
The belief: The moon affects ocean tides… so why wouldn’t it also affect financial markets?
Fact-check: Some traders swear that full moons lead to higher volatility. And there’s actual research showing that investor sentiment shifts with lunar cycles — people are moodier and more risk-averse during new moons, more confident during full moons.
BUT even if the moon does influence markets, there are about a million bigger factors at play (economic data, war, interest rates, etc.).
Verdict: FALSE
________________________________________
✍️
Pro Tip: Instead of moon-watching, check the IQ Option economic calendar — which, unlike astrology, is based on actual events that move markets.
________________________________________
3. The Markets Are Controlled by the Illuminati
The belief: There’s a secret group of ultra-wealthy traders (hedge funds, banks, and institutions) who manipulate markets to shake out small traders.
Fact-check: The concept of Smart Money is real. Big institutions do have better data, algorithms, and influence over price movements. They use liquidity hunts (shaking out stop losses) and fake breakouts to trap retail traders.
While institutions have more control, they don’t always win. Even the biggest hedge funds take losses (see: 2008 crisis, 2022 tech crash). Plus, if they were all in cahoots, why do so many funds blow up?
Verdict: TRUE-ISH (but no shadowy Illuminati meetings—probably)
________________________________________
✍️
Pro Tip: If you want to track Smart Money, watch price liquidity zones and set price alerts on IQ Option. If a level gets hit and immediately reverses, there’s a good chance institutions were lurking there.
________________________________________
4. The Skyscraper Curse: Big Buildings = Big Crashes
The belief: When a country starts building record-breaking skyscrapers, a financial collapse is just around the corner.
Fact-check:
- The Empire State Building (1931) → Great Depression.
- The Sears Tower (1973) → Stock market crash + recession.
- The Petronas Towers (1997) → Asian Financial Crisis.
- The Burj Khalifa (2010) → Global financial meltdown.
However, not every skyscraper predicts doom. (Otherwise, Dubai would be in permanent crisis mode.) But historically, overconfidence in real estate has preceded financial collapses — so the pattern isn’t totally crazy.
Verdict: TRUE-ISH (but more about economic cycles than buildings themselves)
5. The October Effect: The Scariest Month in Trading
The belief: October is cursed. Some of the worst financial crashes in history happened in October, making it the most statistically dangerous month for trading.
Fact-check: The 1929 stock market crash? October. Black Monday in 1987? October. The 2008 crash? Also had some wild October drops.
While October has hosted some legendary crashes, it’s not actually the worst-performing month. In fact, September tends to be weaker. October just gets a bad rep because people remember the big crashes more than the normal years.
Verdict: FALSE (but still spooky)
_____________________________________
✍️
Pro Tip: If you’re worried about October volatility, add key indices to your IQ Option watchlist and keep an eye on market sentiment before panicking.
_____________________________________
Final Thoughts: Are Trading Superstitions Real?
Most common superstitions in trading have some historical backing, but they usually crumble under real analysis. Markets are driven by data, psychology, and money — not magic.
That said, if selling in May, watching the moon, or fearing October makes you more disciplined, maybe these superstitions aren’t so bad after all. Just… maybe don’t base your trades on horoscope predictions.
