Stock Market Astrology

Stock Market Astrology: How it works? Is it effective?

Recently many of readers of this Blog has commented on my previous posts on Ganeshaspeaks.com, The Stock Market Astrologers. Some readers don’t believe in the concept while some do agree with the concept of Stock Market Astrology.

So I have decided to Google (Google is now the synonymous of ‘Search’) the web to know the truth. And surprisingly I have found literally hundreds of websites which offer this service. So I have digg it further. I searched that weather these websites are really making money or not?

And I came to know that most of these websites have a fairly large customer base and earning handsome Revenues by predicting the stock market futures.

After that I go to Wikipedia – Financial Astrology Article to know something more about it. But as usual, Wikipedia people don’t fall in any controversies. They simply give straight forward & unbiased opinions. So Wiki said that,

“The use of astrology in financial markets is not consistent with standard economic or financial theory, but might be considered heterodox economics. The scientific community considers astrology to be a pseudoscience.

The practice carries the implicit belief that astrology is valid and influences human behavior. Although astrology is generally regarded in mainstream Western thought as having no logical basis, advocates of the efficient market hypothesis would also make the same claim with respect to most forms of technical analysis.

Evangeline Adams was one well known practitioner of financial astrology. In 1929 she predicted that the stock market would continue to rise in price. On Labor Day, September 2, she told a reporter for radio station WJZ that "the Dow Jones could climb to heaven." The next day the Dow Jones reached a record high that was not reached again until November 1954”

But I was still not satisfied with the wiki answer. I really wanted to know that weather it really works or not?

So I came across the Article, The History of Stock Market Astrology by Bill Meridian.

I have found one another Chicago website - Astroeconomics which also predicts the Economic futures just like Ganeshaspeaks.com.

But again, I don’t get the right answer of my Question - “Is Stock Market Astrology Really Works?”

I have Google the Web very deeply for this answer but I couldn’t find the genuine & trustworthy answer of this question.

So I have finally decided to Check the prediction of Today’s (17th June 2009) from Ganeshaspeaks.com – Predictions of Stock Market with Today’s Real time Stock market Movement on Sharekhan.com

Here was the prediction of Ganeshaspeaks.com for “Market (Nifty) Prediction of 17th June 2009”.

• Ganesha advises B.T.S.T and P.T.S.T traders to be alert. If you are not careful at the time when profitable price prevails in the market, you may not be able to get that price again. Nifty may remain on the negative side till 10:30.
• Nifty may move upwards during 10:30 to 11:30.
• Nifty may follow an up-down-up trend. Hence, it is advisable to trade only if you have the strength to take delivery. This phase will prevail from 11:30 to 13:30.
• From 13:30 to 15:30, FII traders may buy from the bottom side. Hence, Nifty may climb.

Now let us compare the above prediction with the real time Nifty Movement.

- During 10:30 to 11:30, Nifty was totally flat instead of going upwards according to predictions. So if you have bought stocks at 10:30 pm by following the above predictions than at 11:30 it will be flat.

- During 11:30 to 13:30, Nifty was almost flat. (From 4475 to 4455). So no gain on your Investments.

- From 13:30 to 15:30, Nifty Suddenly went down and end at the level of 4342 (At 10:30 in the morning, the Nifty was 4477). So again in contrast to the prediction, Nifty went down.

In short, Today’s Stock Market Prediction by Ganeshaspeaks.com was totally wrong. In fact, if you had followed this, than you would have suffered a great loss.

So I think that Stock Market Astrology doesn’t work that much effectively. I don’t blame to Ganeshaspeaks.com or stock market astrologers for this. But I personally feel that it doesn’t work.

Buying the stocks of Fundamentally strong companies and holding it for a longer time horizon (More than 5 years) will only let the compound interest work in favour of you. And I think all of us should follow this age old Investment strategy only when it comes to Stock Market Astrology.