Tuesday, 24 August 2010

THE MOON

There has been a theory going around for quite a while, according to which you could profit from the stock market by following the lunar phases. They have even devised an algorithm that purports to make it easy for you to do it or something to that effect.

What utter rubbish! I have never heard anything more idiotic! It stands to reason that, if everybody bought on new moon, there would be no sellers on the market at that point, and, if everybody sold on full moon, conversely there would be no buyers. For a market to exist at any time, there have to be two contrarians. You don't have to be Einstein to work that out. Human nature is not reducible to a mathematical formula, and, if it were, it would not be worthwhile being human.

As far as I can tell, full moon nights are only good if you can take your beloved for a long walk on the beach and whisper bewitching words into her ear. And if, at that point, you are at a complete loss for words, I'm afraid no algorithm can save you.