“Yes, we are made for each-others, but it's not the correct time.” With this sentence, four years back, my hustle to time everything correctly began.
When I was exposed to financial markets, I got to know that, timing is everything here. You might be a great analyst or having strong knowledge of fundamentals, but if you can’t time your trade or investment, then those skills are of no use.
People who are active in markets always believe that it is really difficult and rather impossible to time the market, but they can create insane money if they would be able to do so.
And when there is a gap, mushrooming of solutions or (fake) solutions (with some hopes) is evident to happen. In this blog of FinBus, we will discuss some similar kind of solution, which is popular in markets, to predict the markets: Astrology based finance (or Astro financing, Astro investing, Vedic astrology etc.. )
According to practitioners of it, financial astrology is a field of astrology to relate movements and events of stars and planets to financial markets, including the stock market, commodity market, crude market, and forex market. Astrologers also predict economic trends, correct timing to buy shares, and correct industries.
Now let’s directly dive into its working relation with fundamental and technical analysis, which planets are favorites of astrologers to predict the market and in the end, we will check financial astrology’s relevance.
How does it work?
Different methods are used to predict short term as well as long term changes in financial markets, same as technical and fundamental analysis.
For long term
Astrologers check the birthdate of the business, which can be its incorporation date or the date when the company went public. According to that date, they prepare a horoscope (or kundali) for those businesses. They believe some incorporation dates, months and years are better for some industries, and this golden birth period varies from industry to industry.
They also check whether the name of the company is aligned with its horoscope or not. Also, try to overlap the horoscopes of companies with its founders, CXOs, chairperson, and other decision-makers.
For short term
Vedic or financial astrologers believe that change in degrees of different planets can bring change in financial markets. They determine the changes of planets from where the headquarters of markets are located.
Some of the popular planets and stars are:
Jupiter: It is believed to be beneficial for markets, and under its dominance, markets are predicted to rise. Every 15-degree change in the location of Jupiter is known to match the support and resistance of broader markets. However, according to astrologers, this might not be true of all individual stocks and scripts.
Mercury: It works as a catalyst, in situations of positive effect by other planets, it brings more benefit. And vice versa in the presence of Rahu, Ketu, Shani, etc.
Moon: It is used to predict the ups and downs of forex markets. Every 60-degree change in the moon is considered to bring resistance and support.
All other stars and planets affect markets positively or negatively, according to their nature, which is similar to “normal” astrology.
Is it trustable?
Before diving into it, I have a biased view of astrology as a whole. It's difficult for me to digest these theories, also they don’t provide any firm direction to markets. Their predictions are not considering economical and political volatility, and they are very vocal about it. Hence, it gives them an escape root, if their prediction went wrong.
A famous theory of Vedic astrology in Gann’s theory, which in essence says that stock markets face a crash after every 90 years. Perhaps, this is what the economic cycle looks like. There is little do with movements of planets.
No astrologer was able to predict 2008’s market crash and other such major events. Their predictions are close to accurate in normal market conditions, which is not anything normal technical and fundamental analysis can’t perform.
However, I want to conclude with a statement that, if at all you want to believe in financial astrology, "make sure a financial analyst is taking the help of astrological software to double-check his / her analysis, and not an astrologer advising you with your money."
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