{"id":5359,"date":"2021-10-26T17:18:53","date_gmt":"2021-10-26T11:48:53","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=5359"},"modified":"2021-10-26T17:37:23","modified_gmt":"2021-10-26T12:07:23","slug":"harsh-voras-checklist-for-muhurat-trading","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/harsh-voras-checklist-for-muhurat-trading\/","title":{"rendered":"Harsh Vora&#8217;s Checklist for Muhurat Trading"},"content":{"rendered":"\n<p><em>This article is written by Harsh Vora Harsh Vora, a proprietary investor and day trader with more than 10 yrs of experience in financial markets. He is interviewed on ET NOW and his columns are published in reputed national financial newspapers like Live Mint.<\/em><\/p>\n\n\n\n<p>As you may have gathered, <a href=\"https:\/\/www.tickertape.in\/blog\/muhurat-trading-2021\/?utm_source=blog&amp;utm_medium=guestarticle&amp;utm_campaign=harshvora_mtrad\">Muhurat Trading is a special one-hour trading session<\/a> that is held during an auspicious time slot on Diwali. This year, the special session will be held on 4<sup>th<\/sup> November between 6.15 pm to 7.15 pm.<\/p>\n\n\n\n<p>While the fundamentals of short-term trading as well as long-term investing during Muhurat Trading remain the same as during the rest of the year, this one-hour session holds historical significance. It first started way back in 1957 in the Bombay Stock Exchange to commemorate the start of a new Hindu calendar year and has been held every year since. To welcome the new year, investors normally only buy a few quantities of <a href=\"https:\/\/blog.tickertape.in\/types-of-shares\/?utm_source=blog&amp;utm_medium=guestarticle&amp;utm_campaign=harshvora_mtrad\" rel=\"nofollow noopener\" target=\"_blank\">stocks<\/a> as a token. Why only a few quantities?<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/harsh-voras-checklist-for-muhurat-trading\/#Mind-the-trade-volumes\" title=\"Mind the trade volumes\">Mind the trade volumes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/harsh-voras-checklist-for-muhurat-trading\/#Checklist-for-Muhurat-Trading\" title=\"Checklist for Muhurat Trading\">Checklist for Muhurat Trading<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/harsh-voras-checklist-for-muhurat-trading\/#1-Stick-to-fundamentals\" title=\"1. Stick to fundamentals\">1. Stick to fundamentals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/harsh-voras-checklist-for-muhurat-trading\/#2-Consider-investing-not-trading\" title=\"2. Consider investing, not trading\">2. Consider investing, not trading<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mind-the-trade-volumes\"><\/span><strong>Mind the trade volumes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For one, the trading volumes during this hour are weak. This is because, in a very limited period of one hour, the traders may not get time to close the positions that they may take at the beginning of the session. Given this, they avoid opening a position in the first place. Also since Diwali is a <a href=\"https:\/\/www.tickertape.in\/blog\/tips-to-not-overspend\/\">holiday<\/a> the market participants are not as active as during regular days.<\/p>\n\n\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fwww.tickertape.in%2Fblog%2Fharsh-voras-checklist-for-muhurat-trading%2F&#038;text=Trading%20volumes%20during%20this%20Muhurta%20Trading%20session%20are%20weak%20because%20traders%2Finvestors%20may%20not%20get%20enough%20time%20to%20close%20positions%20that%20they%20open%20in%20a%20very%20limited%20period%20of%20one%20hour.&#038;via=TickertapeIN&#038;related=TickertapeIN\" target=\"_blank\" rel=\"noopener noreferrer\">Trading volumes during this Muhurta Trading session are weak because traders\/investors may not get enough time to close positions that they open in a very limited period of one hour. <\/a><\/span><a href=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fwww.tickertape.in%2Fblog%2Fharsh-voras-checklist-for-muhurat-trading%2F&#038;text=Trading%20volumes%20during%20this%20Muhurta%20Trading%20session%20are%20weak%20because%20traders%2Finvestors%20may%20not%20get%20enough%20time%20to%20close%20positions%20that%20they%20open%20in%20a%20very%20limited%20period%20of%20one%20hour.&#038;via=TickertapeIN&#038;related=TickertapeIN\" target=\"_blank\" class=\"bctt-ctt-btn\" rel=\"noopener noreferrer\">Click To Tweet<\/a><\/span>\n\n\n<p>Two, since this is considered an auspicious hour, both traders and investors avoid selling stocks unless the market fundamentals suggest so. The relative lack of active sellers in turn implies low liquidity in the market, which dissuades market participation.<\/p>\n\n\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fwww.tickertape.in%2Fblog%2Fharsh-voras-checklist-for-muhurat-trading%2F&#038;text=Trading%20volumes%20during%20Muhurat%20Trading%20are%20weak%20as%20traders%20and%20investors%20avoid%20selling%20stocks%20unless%20the%20market%20fundamentals%20suggest%20so.%20Lack%20of%20active%20sellers%20implies%20low%20liquidity%20in%20the%20market%2C%20which%20dissuades%20market%20participation.&#038;via=TickertapeIN&#038;related=TickertapeIN\" target=\"_blank\" rel=\"noopener noreferrer\">Trading volumes during Muhurat Trading are weak as traders and investors avoid selling stocks unless the market fundamentals suggest so. Lack of active sellers implies low liquidity in the market, which dissuades market participation. <\/a><\/span><a href=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fwww.tickertape.in%2Fblog%2Fharsh-voras-checklist-for-muhurat-trading%2F&#038;text=Trading%20volumes%20during%20Muhurat%20Trading%20are%20weak%20as%20traders%20and%20investors%20avoid%20selling%20stocks%20unless%20the%20market%20fundamentals%20suggest%20so.%20Lack%20of%20active%20sellers%20implies%20low%20liquidity%20in%20the%20market%2C%20which%20dissuades%20market%20participation.&#038;via=TickertapeIN&#038;related=TickertapeIN\" target=\"_blank\" class=\"bctt-ctt-btn\" rel=\"noopener noreferrer\">Click To Tweet<\/a><\/span>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Checklist-for-Muhurat-Trading\"><\/span><strong>Checklist for Muhurat Trading<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>So the question is, how should we approach this trading session and what checklist should guide our decisions?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1-Stick-to-fundamentals\"><\/span><strong>1. Stick to fundamentals<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For long-term investors, the most important thing to remember is to stick to the fundamentals of investing. During Muhurat Trading, it is tempting to fall prey to emotional exuberance and purchase stocks based on random tips. All said and done, over the longer term the stock prices respond to earnings growth. If the earnings growth of a company is low, for instance, then it may not help to <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> in the company.<\/p>\n\n\n\n<p>Similarly, other metrics to track to gauge a company\u2019s fundamentals are return on capital employed (<a href=\"https:\/\/www.tickertape.in\/blog\/capital-allocation-impact-on-stock-price\/\">ROCE<\/a>), debt to <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> ratio, <a href=\"https:\/\/www.tickertape.in\/blog\/pe-ratio\/?utm_source=blog&amp;utm_medium=guestarticle&amp;utm_campaign=harshvora_mtrad\">price-to-earnings ratio<\/a>, and more.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1101\" height=\"1479\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/checklist-for-mt-IG-3.png\" alt=\"\" class=\"wp-image-5372\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/checklist-for-mt-IG-3.png 1101w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/checklist-for-mt-IG-3-223x300.png 223w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/checklist-for-mt-IG-3-762x1024.png 762w\" sizes=\"(max-width: 1101px) 100vw, 1101px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2-Consider-investing-not-trading\"><\/span><strong>2. Consider investing, not trading<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The point is, it\u2019d be wise to use the auspicious hour of Diwali to initiate your long-term positions, either in stocks or <a href=\"https:\/\/www.tickertape.in\/blog\/mutual-funds\/\">mutual funds<\/a>, after assessing their fundamentals.<\/p>\n\n\n\n<p>Secondly, remember that a one-hour trading period is not conducive to <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-intraday-trading\/\">intraday trading<\/a>, especially given low volumes and liquidity. For <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-swing-trading\/?utm_source=blog&amp;utm_medium=guestarticle&amp;utm_campaign=harshvora_mtrad\">swing trading<\/a> (which means holding positions for more than a day), only trade when the setup is right and the market provides attractive opportunities. If it does not, then you may well use this hour to screen <a href=\"https:\/\/www.tickertape.in\/blog\/fundamentally-strong-stocks\/\">fundamentally strong stocks<\/a> using <a href=\"https:\/\/www.tickertape.in\/screener?utm_source=blog&amp;utm_medium=article&amp;utm_campaign=harshvora_mtrad\" target=\"_blank\" rel=\"noreferrer noopener\">Tickertape\u2019s Screener<\/a>, and researching the ones you may find promising.<\/p>\n\n\n\n<p>Remember, executing trades is only 1% of the work. The other 99% involves screening stocks, researching them thoroughly, or backtesting your strategies. Any research or back-testing you\u2019d conduct during this auspicious hour may turn out to be equally rewarding.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>To welcome the new year, you may buy a few quantities of stocks as a token. But given the very short session of one hour, it is best you get this checklist of investing in Muhurat Trading right.<\/p>\n","protected":false},"author":60,"featured_media":5371,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[9,1759],"tags":[],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/Checklist-for-MT.jpg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5359"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/60"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=5359"}],"version-history":[{"count":8,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5359\/revisions"}],"predecessor-version":[{"id":5379,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5359\/revisions\/5379"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/5371"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=5359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=5359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=5359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}