Myths in stock trading

I have decided to list down some of the more common myths in stock trading. For purely entertainment purpose, you might wish to note it down and observe whether is it relevant.

• The market usually plunge when it is raining heavily on that day
• Stock price usually drop on Fri as trader do not want to hold over weekend position
• Stock price is at its highest during the 1st two hour of trading
• When stock price close high, the next day would most likely be bullish
• Sept is traditionally a bad month for stock trading
• Dec is usually a bullish mth
• When there is a holiday on fri, the market will usually rally on the holiday eve
• 5 days before company release their result, the stock price would usually be on an upward trend. However, once the result is out, it will usually drop. Classic case of buy on anticipation and sell on news
• Stock price would usually be appreciating before CUM dividend date due to buyers buying for the sake of dividend. However, price would usually drop after ex-dividend.

Hope the above might be of certain use to you. Again, do trade with care as the stock market is very dynamic. No one can be a master when it comes to trading stocks. We can only increase the probability of winning and certainty is always the definite myth. Good luck!!