Diwali is a new beginning. It is considered to be an auspicious day that brings a lot of positivity, joy, and success. Businesses have started prepping for the Muhurat Trading session and so have the investors. If you don’t want to miss out, this trading session is an exciting opportunity to kick start your investment journey given it is considered to be lucky. And fret not, we’ve got you covered with all the essential information you need to know! Let’s start with understanding what the term means.
This article covers:
- What is Muhurat Trading?
- Why is Muhurat Trading lucky?
- Starting your investment journey on Muhurat Trading
- Things to keep in mind before Muhurat Trading
What is Muhurat Trading?
Muhurat Trading refers to a one-hour session on the day of Diwali and is considered auspicious for investing. This time, it is on 4th November 2021 from 6:15 PM to 7:15 PM. It is believed that if you invest during this time, there are high chances of amplifying riches throughout the year. Well, isn’t that something? Also, please note that this is true only in the Indian stock market.
Now that you have a basic understanding of Muhurat Trading, let’s dive into more details about this fruitful timing of investing.
Why is Muhurat Trading lucky?
This trading session is considered lucky because investors from across the country come together during this one-hour window driven by the faith to invest money during a festival like Diwali. This became a tradition a long time ago as traders would begin a new season by paying greetings to the goddess of wealth, Lakshmi.
Muhurat Trading is when the people come together to share the collective goodwill during the day of Diwali. New players make their entry into the stock market with a bang. Every investor’s eyes are on the developments that happen in the market hoping that investing during this time would bring them profits. However, as always, you should be careful when investing. Instead of blindly following Diwali trends, which could be mere speculations, it is best to do your research and invest accordingly.
Starting your investment journey on Muhurat Trading
Below are a few pointers to help you get started:
Step 1: Open a Demat account. This is to electronically store the shares you buy.
Step 2: Add funds from your bank account to your Demat account.
Step 3: Do a bit of research on the stocks that you would want to invest in. This would include looking at the stock’s historical prices, analysing the company’s financial statements, doing peer comparison, and more. For easy access to this, you can visit Tickertape. Make sure you pick stocks that have strong fundamentals so they are able to weather market downswings in the long run and give decent returns.
Step 4: After your research, you are all set to start investing in stocks.
Things to keep in mind before Muhurat Trading
Here are a few aspects to be kept in mind before trading. They are as follows:
- All the open positions will result in settlement obligations at the end of the trading session.
- For the Muhurat Trading session, the market will only be open for that one-hour window.
- Keep an eye on the market as it can be unstable during this session so you can make wise decisions.
- Make sure you stick with the fundamentals of the company before you invest in a stock for the long term. From the past Muhurat Trading sessions, it has been observed that the rumours tend to spread quickly due to the excitement during the session.
- If you plan to capitalise on the volatility in the market, make sure to select stocks that have good trading volumes.
As established in this article, Muhurat Trading is an auspicious time for traders and investors. However, don’t blindly follow your peers or the market trends. The one-hour long trading session is soon approaching. If you haven’t prepared your stocks watchlist, now is #dimaaglaganekamuhurat. Use the filters offered on Tickertape and screen stocks based on the metrics that suits you best. You can place multiple buy or sell orders to Basket. And link your account to your broker account to place stock orders via Transaction directly on Tickertape. Happy investing!
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