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Why Superstitious Stock Traders Fear the Month of October

By September 12, 2016 No Comments

online trading schoolEven if you know nothing else about the stock market, you are certainly familiar with the devastating crash of 1929, which led to the infamous Great Depression.

Commonly known as “Black Tuesday,” October 29, 1929 was the fateful day on which billions of dollars were lost on the New York Stock Exchange. In the aftermath, the industrialized world spiraled down into the deepest and longest economic downturn in history.

This is a well-known story, but did you know that Black Tuesday was only one of several big stock market crashes that occurred during the month of October? Due to this weird phenomenon, the “Stock Trader’s Almanac” actually considers this month jinxed.

In October of 1907, heavy panic set in on Wall Street when what is now called the “1907 Bankers’ Panic” or the “Knickerbocker Crisis” led to a near total collapse of the New York Stock Exchange. The panic spread through the entire nation as many banks and businesses were forced to declare bankruptcy.

Black Monday was what they called the day in October of 1987 during which stock markets around the world crashed. It began in Hong Kong, spread to Europe, and hit the United States on October 19. The Dow Jones fell exactly 508 points that day.

The stock market actually rose to some of its highest levels just preceding these and other stock market collapses. In fact, just before the 2008 U.S. economic recession began, the Dow Jones added more than 900 points, which was recorded as the highest ever increase in the index.

Predicting the stock market is tricky, but with the proper education, one can become a skilled trader. By attending an online trading school, you can learn to trade the market alongside the best of them. Stock trading courses will teach you everything you need to know about the techniques and methods used by Wall Street professionals.

As a student of an online trading school you will get the support and experience you need to reach financial success, and you can do it all from the comfort of your home. You simply need a reliable Internet connection, a few hours of free time a week, and the passion and motivation to learn.