Gen Z Trades Stocks Using 'Vibes': Astrology and Tarot Meet Wall Street
Gen Z is revolutionizing the way day trading is done, blending traditional stock market strategies with astrology and tarot. This generation, passionate about both financial freedom and intuitive practices, is now using celestial guidance for their market decisions.
Trading by the Stars
Young investors are turning skyward for insight. Stefaniya Nova, or @blonderichwitch on TikTok, illustrates this trend perfectly. At 25, she leverages astrology, tarot, and intuition for her trades in New York City. "After scanning the market from 8:30 AM until 9 AM and picking the stock I’ll be trading that day (today it was Amazon), I do a single card pull to confirm my decision or get guidance," she shared in a TikTok video. Today's pull, the Ace of Cups, represented abundance, giving her confidence in her strategy.
Nova's approach appears to be working. In one video, she revealed a $300 gain from trading Amazon shares, boasting a 21% return in just 8 minutes. Another video showcased monthly earnings close to $6,000. Nova's success story is one of many that blend spirituality with financial investment.
The Trend Tied to Financial Freedom
"It’s a new way of making money," Nova said. She recently quit her job as a tarot reader to pursue day trading full-time, now earning around $5,000 monthly. However, experts caution against this strategy.
Samuel Hartzmark, a behavioral finance professor at Boston College’s Carroll School of Management, highlights the pitfalls. "In financial markets, you shouldn’t be making decisions broadly based on perceptions of things," he noted. If these methods were indeed reliable, more market participants would be using them.
The Appeal of Control
The illusion of control, according to Hartzmark, can explain the allure of such methods. Young people finishing college and entering the adult world are particularly drawn to this. Over 70% of Gen Z owns stock, driven by FOMO and a desire to escape the corporate grind.
Joyee Yang, 25, a financial influencer with over $150,000 in assets and 131,000 TikTok followers, shares this sentiment. She turned to the stock market after being forced to find financial stability on her own.
The Risk of Misinformation
While influencers like Yang share success stories, WallStreetZen found that nearly two-thirds of StockTok videos are misleading. These videos, amassing millions of likes and views, often spread misinformation.
Historical Precedents
Interestingly, this isn't entirely new. J.P. Morgan and William Delbert Gann, historical figures in finance, also relied on astrology. However, Hartzmark cautions against over-attributing success to such methods, emphasizing that the success rate in day trading is inherently low.
Conclusion
While the psychology of seeking financial control isn't new, the manifestation in Gen Z's practices reflects a blend of old beliefs with modern technology. Whether this blend will stand the test of time in the financial markets, only time will tell.
Research by WallStreetZen suggests vigilance and critical thinking should be applied when navigating these waters.
Stay informed. Stay critical. Invest wisely.
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