01-01-1970 12:00 AM | Source: .
Muhurat Trading Strategies for Smart Investors
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Each year, the Indian stock market observes a symbolic ritual - Muhurat Trading - at the stock exchanges. As per Hindu tradition, this is an auspicious time when the Goddess of Wealth and Prosperity - Lakshmiji - is worshipped. It is widely believed amongst traders that placing a trade during this one-hour muhurat brings good fortune in abundance.

However, many traders are a little wary about how to approach this special occasion the right way. So, here is a strategic course of action to help you be prudent and make the most of Muhurat Trading.

Things to know about Muhurat Trading

* Most auspicious time of the year for investment

As muhurat trading is conducted at the time of worshipping the Goddess Lakshmi, it holds a special importance. Investing during this auspicious time is considered to be a sign of good fortune.

* Ideal for long-term investing

Typically, long-term investors add some shares to their portfolio as a token of luck. You can make use of this opportunity by adding Angel One’s Shagun Ke Shares to your investments. These research-backed Muhurat Trading top picks make a perfect way to do Investing ki Smart Shuruaat for the new year. 

* Trendy momentum for intraday trading

The intraday traders who buy and sell the shares on the same day look to gain from price momentum during Muhurat Trading. They believe that making a profit on this auspicious day will keep them profitable for the rest of the year. However, it is considered high-risk trading and should be exercised with utmost caution.

* Things to do

Here are certain things that you must do during the Muhurat Trading session of 2022.

* Purchase token shares

As Diwali marks the beginning of new year - Samvat Vikram - you can take part in the symbolic event of buying token shares and seek prosperity throughout the year.

* Focus on value shares

Carefully buy quality stocks of fundamentally strong companies trading at reasonable  valuations. You can refer to a list of Shagun Ke Shares exclusively catalogued for Muhurat Trading here.

* Aim for diversification

If you plan to invest ?5,000, then you can consider breaking it down and invest ?1,000 in 5 companies of different sectors. With diversification, you can reduce the risk factor.

* Be aware of the market position

You must track the market activity a few days before the Muhurat Trading to know if it is in oversold or overbought territory. Make use of technical indicators to understand the market performance.

Things to avoid

Now that you are aware of the things you should be doing during Muhurat Trading, it’s time to look at what you should specifically avoid.

* Do not trade in high volumes

Muhurat Trading offers a thin window of one hour to place trades. Therefore, you must keep away from placing big trades and avoid liquidity problems.

* Avoid intraday trading

Though the market trend may remain strong during Muhurat Trading, intraday trading can be tricky. It is in the best interest to focus on long-term trades rather than placing short-term bets.

* Ignore rumours and hot tips

With increased retail participation, numerous rumours and speculations tend to make rounds during this period. Avoid such news and hot tips at all costs.

* Do not get carried away

It is easy to get distracted in the high festive spirit. While placing trades, stay calm and have a realistic mindset to avoid getting carried away by the expectation of huge wealth.

To sum up

Muhurat Trading is an auspicious time that opens a promising chapter of your financial career. With all the strategic guidelines mentioned above, you are all set to make the most of this year’s special session. There is no better way than celebrating Diwali and New Year by doing Investing ki Smart Shuruaat.

Explore Angel One’s Shagun Ke Shares, an expert-curated list of top stocks for Diwali 2022. Pay homage to the Goddess Lakshmi by initiating a long-term investment in these value stocks and unleash the power of compounding.


Disclaimer: This blog is exclusively for educational purposes only. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit.  https://bit.ly/2VBt5c5

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