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Full Moon

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Definition of 'Full Moon'

A full moon itself hardly needs defining. What is interesting is that it appears in a trading/investment dictionary.

Many traders believe that the markets become more volatile and act more unpredictably during a full moon. For this reason traders may either stay away from the market completely or change their trading strategies on the day of the full moon or the day before.

If a sufficient number of traders believe that the full moon will impact the markets then this may just create a self-fulfilling prophecy and cause it to happen.

Traders who believe in the unpredictability of the markets at the time of a Full Moon often refer to it as a Fool's Moon because you would be a fool to trade on that day.

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