In India Diwali is the biggest festival of all, especially for North Indian families. While the main reason for celebration is to celebrate the return of Lord Ram, prince of Ayodhya back to his home town after spending 14 years in exile. (In the process he killed the demon Ravana who had kidnapped his wife Sita).
Diwali is also the day when people worship the goddess of wealth Luxmi. Since Diwali is also the day when business people start the accounts for the next year, I also take a stock of my portfolio and try to find out how I have fared against the general market. As Diwali is also the day of Muhurat trading on BSE, I also buy a few stocks that I have fancied for some time but have not bought due to some reason. Most of these purchases are more for the good omen and less after any serious research. But there is a method in madness. I buy stocks that I have liked for some time but either the price is not right or I do not have enough money to take a serious position in the stock. These Diwali pickings are more of experimental/pioneering steps in the company that I fancy. These small positions since become part of portfolio they are in front of my eyes every time I login and keep on getting automatic updates on the same. So whenever I feel the price and time is right I can build my position in the stock.
Here it is prudent to add that Diwali is also the day most of Indian business men start their fresh accounts. This is irrespective of their legal financial year which normally is April to March cycle.
I also do a stock taking on the Diwali day of my portfolio and see what all have been doing good and what needs to be done in future.
What I also do on this day is I will buy a few of the stocks that I have been tracking and want to add to my portfolio. As Diwali day is muhurat (Auspicious opening) trading on BSE I typically buy just a small amount of stock/s that I like. This is my way taking my chances on the Diwali day and burning my cracker money instead of burning real crackers and polluting the environment.
So far things have been good and most of the stocks that I bought on Diwali day have given me decent returns. Now pleas remember this is not a stock picking strategy that I am recommending. This is more of a personal belief that buying on Diwali day is auspicious is what I am following.
I will update the blog once I buy something on this Diwali in the Muhurat trading.
So happy Diwali to all of you J
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