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Muhurat Trading 2022 – Trading Time | Recommendations | Do & Don’t

Muhurat Trading 2022 - Trading Time | Recommendations | Do & Don't

In the series of Stock Market Glossary, today let’s learn about Muhurat Trading 2022-Trading Time. Without wasting much of our time let’s get straight into the topic.

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Stop Loss in the Share MarketInsider Trading in Stock Market

Muhurat Trading 2022

The word “Muhurat” means an auspicious or divine time. As per Hindu custom, this time is favorable to carry out rituals to ensure positive results. Diwali is known as the festival of lights and celebrates the victory of good over evil and darkness. That is why Hindu people across the country do Laxmi Pooja on this day. Lakshmi is the goddess of wealth and good fortune. As per Hindu tradition doing Laxmi pooja on this day brings prosperity, wealth, and goodwill into the home.

The trader communities do trading in the stock market for an hour to mark the beginning of New Samvat. Most importantly, muhurat trading on this day is thought to bring wealth and prosperity for the entire year. Our Gujarati/Marwari community initiated this because they had been actively engaged in trading for decades. In general, the Gujarati community begins its new year a day after the Laxmi Pooja (Muhurat Trading Day).

The transactions made on this day are more for traditional, religious, and sentimental reasons. Brokers and investors make token investments and generally hold the stocks for long period. However, there is no restriction on the type of trading you can book intra day profits as well.

Every year the stock exchange provides a one-hour special trading window to traders & investors to retain the old ritual. In case you’re a newbie to this market, then definitely you can start your journey on this auspicious day.

Also Read Lifetime Free Demat Account without AMC in 2022

Muhurat Trading Time

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There is no set time for Muhurat trading on Diwali, and it varies from year to year. This one-hour window is determined by Hindu Panchang. The timing of Muhurat trading gets publishes every year in advance by the Stock Exchange on their websites as well as in local newspapers.

Recommendations

I have a few recommendations for my fellow investors. This will be helpful if you’re planning to start your journey on this auspicious day or you have an experience. Let’s check out the Do’s and Don’t for this day so that we don’t repent later:

Do’s

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  1. Buy in small quantity: As a symbolic purchase you buy stocks in small quantity as market can be volatile and trading window is hardly of one hour. In case you’re beginning your journey then make a token purchase with long term horizon to deliver better returns. On the other hand if you have experience, then choose the stocks with good volumes.
  2. Buy Quality Stocks: Being investor you ensure you have the fundamentals of the company thoroughly before buying the stocks and just investing in muhurat trading will not guarantee returns. Instead the future performance will be basis the company’s fundamentals and macro economic factors.
  3. Avoid Intraday Trading: Traders have a tendency of booking profits from volatilty but keep in mind the window is only for one hourbefore which you have to square off your position. Therefore, try to avoid intraday trading on this auspicious day instead follow the above two points and enjoy the Diwali eve.
  4. Avoid Overtrading: The window will be open only for one hour so ensure you don’t indulge in overtrading.This is a common mindset among investors or traders to make a profit on this auspicious day as a indication of future substantial profits.

Don’ts

  1. Avoid Placing Large Orders: The trading window is for hour only therefore the liquidity will be less hence avoid placing large orders especially for intraday traders.
  2. Don’t fall prey to Rumours/Speculation: You may hear catchy and unreliable information hence don’t rely on such piece of information. Instead do your fundamental research & invest accordingly.
  3. Don’t lose your focus: Returns are not sure on this Muhurat trading so don’t lose your focus from the stocks you decide to buy on this auspious window.

To sum up, I would say don’t focus on profitability during Muhurat trading 2022 instead do it only for gesture purposes. Happy Investing guys with Us!

Also Read Best Dividend Paying Stocks in 2022 – What is Dividend in the Stock Market?

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