You often see the same strategies being mentioned over and over, there are a few different ones that a lot of people use, or at least different variations of very similar ones. However, every now and then you come across a strategy that people are using which do not actually make any sense, more often than not there is a form of gambling involved, but those people are convinced that their strategy works and so they continue working with it.
We are now taking a look at a number of different strange yet very real strategies that people have been using to trade on the markets.
Allowing your pet to trade: This is a weird one and certainly goes into the realms of gambling. You probably see during most major sporting events, they will put food in two bowls to predict the result, whichever the bowl that the pet eats out of is the predicted winner. Some people have taken this into the trading world and put two bowls down, one with a buy and one with a sell, then let your pet decide. Now unless your pet is actually psychic, this method of choosing trades is certainly not a realistically long term process. It is all a gamble and not something that we could recommend, it could work for a few trades, but certainly won’t in the long run.
Use sports to trade: Sports trading is big business, but we aren’t talking about that, we are talking about people who use sport to work out what they’re going to trade on the markets. This can be a single match or an overall tournament, normally people will look at the super bowl or the world cup final, whichever team wins or scores next will determine the direction of the trade. Not the most scientific approach and certainly not a reliable one, yet it is something that a lot of people do, mainly for fun I am sure, but there is a good chance that one could go the wrong way. I am sure that you can see that there really isn’t a correlation between sport and trading in this sense.
Trading based on the weather: What could be easier than getting up in the morning, looking outside, and knowing exactly what the markets are going to do. Well, that is exactly what some people are doing, they are simply opening the blinds and trading based on the weather. If it is sunny, it will probably go up, if it’s rainy, most likely down, seems logical right? Well apart from the fact that the weather does nothing to the markets. It may change your outlook or your mood, but it certainly does not change the markets.
Trading based on the seasons: Pretty similar to the weather, but slightly easier to work out what the direction of the trade should be. This isn’t necessarily about deciding whether you go long or short, it is more based around the idea that certain investments are better in the colder months and others in the warmer ones. Strategies surrounding this can involve things like trading riskier investments and currencies from November to March before then switching to slightly less risky investments for the rest of the year.
Coin flip: You need to love to gamble on this one, it is not really a strategy when you think about it, it is more of a 50/50 gamble, flip a coin, heads go up, tails go down, simple really.
Home run: The riskiest of all strategies, you are simply going for a home run with every trade, if it is pulled off then you pretty much double your account, couple home runs in a row and you are laughing to the bank. However, unlike baseball, it is one strike and you are out. You need to be able to massively over leverage the account as well as risk the entire thing on a single trade, putting in a trade size larger than usual. Not the best strategy at all, but if you have $10 you don’t mind gambling, it could be fun.
So those are a few of the weirder strategies that people have been known to use. They aren’t ones that are going to make you rich, heck they probably won’t get you many wins compared to losses, but for a bit of fun, they could be worth a shot, of course, maybe use them on a demo account instead of on your actual account.