Celebrations and investing make an unusual pairing, which is exactly why risk deserves extra attention on festive days. Every year, thousands of people take part in the stock market Diwali Muhurat trading session, and most do so with good intentions and light hearts. Sensible risk habits make sure that cheer is not followed by regret. For planning purposes, the Muhurat trading 2026 date and time has been set for Sunday, 8 November, from 2:20 PM to 3:30 PM, and the following ideas will help you approach it with composure.
Recognising That Risk Does Not Take a Holiday
1. Just because it is a good day does not mean that the underlying nature of the equities has changed. There are vast reasons why price moves may occur and there will be no protection from these due to there being a short period. Whilst many people will get involved but place small mock orders, some will make larger trades. This often causes some volatile movements.
There are varied types of risks within the markets. Being aware of them can help you prepare:
Market – whereby prices in general fall
Company – whereby a company does not perform well
Liquidity – your ability to sell at a good price
Behavioural – which can cause you to make unwise decisions.
How much to Invest?
One of the best ways to mitigate risk is to limit how much you want to invest. Before trading decide how much you want to invest and what percentage of your overall portfolio this will account for. Many conservative investors will invest a small percentage of their portfolio into any one investment.
Try to think about what would happen if the investment lost 25% of its value. If you would feel stressed or worried then you are investing too much. Never risk any money which is needed for rent/school fees/medical costs or loan payments.
Do not use any debt. Although margin or personal loans can boost profits they will also cause profits to increase. You could end up having to sell at a bad time. Only invest the money that you truly have.
Limit orders
These can be used to help limit your risk. If you place a limit order you can specify the max price you want to pay or the min value you want to receive. As opposed to market orders where you will be sold/bought at whatever price is available.
Large highly liquid stocks generally have a lower spread (difference between buy price and sell price) so are a good option for new traders. Low liquidity stocks can be volatile so may be difficult to exit. The short period will increase this.
Become familiar with the process, taking note of when the market opens and when the short period is (refer to exchange circulars). Also when you make trades, they will actually settle meaning that you need to ensure you have cash and sellable stock. This can be avoided through being prepared.
Diversify
To further decrease the effect of any one company failing within your portfolio, invest into different companies, sectors and asset classes. If you are only buying one stock for the festivities ensure that it is part of a diversified portfolio (index funds, balanced funds, debt, gold etc).
Look at quality. Invest into companies with stable earnings, moderate debt and transparent management. Look at recent results, comments from management and look at how they compare to others in terms of valuations. A financially strong company is more likely to be able to withstand shocks.
Avoid investing into risky areas. Avoid very low priced stocks which get heavily promoted online. Stocks which have increased sharply without any clear reason behind it can quickly fall so could leave you at a loss as you’re buying late.
Mindset
Stay disciplined. Before trading, write out a plan for what you want to invest in, how much, at what price and what you would sell. This can act as a reminder whilst you are feeling excited or anxious.
Do not be put off by short-term movements. It is normal for a stock to fall a little shortly after you’ve invested. Do not focus on the price movement but look at why you made the decision and how the company has performed over the years.
Be wary of scams. Scammers will push you to invest with them in the festive season with promises of guaranteed returns, inside tips or exclusive festive deals. Only invest through registered intermediaries. Ensure your passwords are kept safe and do not give out your one-off codes.
End of Day
Once you have finished trading, look back on your trades. Download your contract note and take note of why you invested. Get off your computer and enjoy your evening with your family. Rarely will constant monitoring improve results and can cause more stress.
In the coming days look at how much risk you have overall. If you haven’t already, create an emergency fund, ensure you have sufficient insurance and set up regular investments. This will give your portfolio a solid base.
A relaxed investor will be a resilient investor. By keeping your position sizes small, investing into quality stocks, using smart orders and staying in control of your emotions, you can get involved within the festive tradition. However, it is best to be thankful, cautious and think long-term as we start Samvat 2083.
