Some traders believe that Lunar Cycles affect market volatility, and this can have an effect on risk management. They tend to trade more during certain moon phases and stay out of the market during other phases. The idea is that the different phases of the Moon can impact market sentiment and investor behavior. For example, the full moon is associated with increased volatility in the market, while the new moon is associated with calmer markets. Many stock exchanges tend to experience more volatility than normal during a full moon. This is believed to be a result of the increased amount of light at night affecting investor sentiment. Some also believe that the moon can have a calming effect on the markets as well if it interrupts investors’ sleeping patterns.