Here’s How You Can Prepare for Muhurat Trading 2021
By now you must be aware of what Muhurat Trading is. But if not, you can read ‘Shubh Muhurat To Start Investing in Stocks’ to get an understanding of it. And if you have not started yet, you can read How To Begin Your Investment Journey During Muhurat Trading. In this article, we will dive deep into a few important points that will help you prepare for the Muhurat Trading session 2021.
Do’s during Muhurat Trading
Trading stocks during this auspicious Muhurat Trading session is thought to bring prosperity and fortune. Here are a few do’s of Muhurat Trading:
Learn before you venture
You don’t want to dive deep into the trend of who’s investing in what stocks. It’s a safer option not to go with the herd mentality. Instead, research the companies whose stocks you wish to buy. Ensure that their finances are sound, they hold good fundamentals and have the potential to give profitable returns in the long run. Talk to the advisors if need be and only then shortlist the stocks you want to buy during the Muhurat Trading session.
Long term investment
Investments made on this day are believed to bring good fortune. The stock market tends to be more on the bullish side during the Muhurat Trading session and hence stocks could tumble in the near future due to profit booking. This is why it is better to focus on long-term investment.
The key point to focus on is the sustenance through stock buys. The strong overall performance of the business may provide good returns in the future, in case you consider investing for the long-term.
Invest in blue chip stocks
Instead of taking speculative bets, you could consider investing in quality stocks because they will add strength and stability to your portfolio.
Blue chip stocks are one among this lot. These are stocks of mature entities that are financially sound. They are relatively less volatile and have high valuations. And these are also popular among investors.
Diversify portfolio
One thing that well-groomed investors vouch for is to diversify your portfolio. Muhurat Trading session is open only for an hour, so it is better to research the stocks that you want to invest in beforehand.
Make sure that the stocks you have added to your watchlist are diversified. Meaning, they belong to different sectors. This helps mitigate the risk in case you had put all your money in one basket.
Don’ts during Muhurat Trading
Below mentioned are a few points to avoid before investing during the Muhurat Trading session:
False impression
Don’t invest with the mindset that you will reap good returns if you invest during the Muhurat Trading session as there is no guarantee. Because the returns totally depend on the company’s fundamentals and historical performances. Instead, as mentioned earlier, do your homework regarding the companies and then make a decision.
Avoid options trading
Options are mostly used for hedging purposes and high leverage segments. They also have less trading time and liquidity constraints. Due to these challenges, you may keep them for some other day and trade in stocks during Muhurat Trading.
Continue to read the other don’ts during Muhurat Trading.
