Muhurat trading is a unique trading tradition in India. It is a one-hour trading session that takes place on Diwali, the Hindu festival of lights. Muhurat means “auspicious time” in Sanskrit, and people believe that trading during this time is blessed by the goddess Lakshmi, the Hindu goddess of wealth and prosperity.
Muhurat trading is typically held in the evening on Diwali, and it is open to both retail and institutional investors. The trading session is for one hour, and it is governed by the same rules and regulations as regular trading. However, there are some restrictions on what can be traded during muhurat trading. For example, commodities trading is not allowed.
Muhurat trading is a popular tradition in India, and it is seen as a way to start the new financial year on a positive note. Many people believe that investing during muhurat trading can bring them good luck and prosperity in the coming year.
Why do people participate in muhurat trading?
There are a few reasons why people participate in muhurat trading. Some people believe that trading during this time is blessed by the goddess Lakshmi, and that it will bring them good luck and prosperity in the coming year. Others participate in muhurat trading as a way to celebrate Diwali and to start the new financial year on a positive note.
What are the benefits of muhurat trading?
There are a few potential benefits to muhurat trading. First, the trading session is typically very liquid, meaning that there is a lot of buying and selling activity. This can make it easier to buy or sell stocks at a good price. Second, the market is often bullish on Diwali, so there is a good chance of making profits.
What are the risks of muhurat trading?
There are also a few potential risks to muhurat trading. First, the trading session is only one hour long, so there is less time to react to market movements. Second, the market can be volatile on Diwali, so there is a risk of losing money.
Who should participate in muhurat trading?
Muhurat trading is not for everyone. It is important to carefully consider your investment goals and risk tolerance before participating in this type of trading. Experienced investors who are comfortable with trading in volatile markets may be more likely to benefit from muhurat trading.
