It’s that time of the year again when all of us are glued to our TV screens. No, India is not playing, the finance minister is presenting the FY 2025-26 budget. At the start of the year, we start all these assumptions and guesses around the budget.
Experts form their opinions based on previous budgets, their experiences, and society’s expectations. Although with all these speculations we forget about one aspect which is the stock market.
When the budget is being presented, the stock market usually experiences fluctuations, which can make trading difficult for beginner stock traders. As beginners the traders have just begun their trading journey and they are experiencing this major event.
We understand it can be difficult to navigate the stock market during such time. But you don’t have to worry about it. Here in this blog, we are going to discuss some of the key points that as a beginner trader, you need to know before your next trading session.
Starting From Basics
Before we get into the details, it is essential that you understand budget session can have a huge impact on the stock market and can influence your trading decisions as well. Hence, it is essential that you understand the market thoroughly before you start trading and investing.
The stock market in itself is unpredictable and with the budget being released, the market will react to the budget decisions. Hence, you should prepare yourself for some major, drastic changes in the stock market, and your trading as well.
As a beginner, it becomes difficult to assess the market during such times. Hence, it is essential that you avoid making any major decisions or taking new risks without any prior research.
Also during the budget announcement, since the market is reacting to all the changes, it is important to first observe the market, and take professional advice or help if required, instead of making any decisions and facing losses.
Leverage the Special Trading Session
On the 1st of February 2025, as the budget is being presented, the NSE has announced to hold a special trading session for all the stock traders. This session will commence before the usual trading session to allow traders to assess the market, place their investments, make any required changes, and react to the budget as well.
Once this session is over, the usual trading session will take place. These special trading sessions take place only on special occasions which is the budget session.
Moving forward, for beginner stock traders, this session will become a significant event to learn more about the stock market, and even try to put their knowledge into practice. However, taking unnecessary risks is not advisable during such time, as the market is already unpredictable.
Below are certain points that beginner stock traders should consider during the budget session trading.
- Clear Investment Goals
One of the first things that you need to know or do before you start trading on the budget session is to have clear investment goals. Having clear goals for your investment can help you plan your investments, and offer clarity on which stocks you should target.
- Stock Selection
Based on your assessment, and market trends, choose stocks carefully that are suitable for your portfolio. This can help to minimize the loss for your stocks and help you manage your investment effectively.
- Risk Assessment
Having a clear assessment of the market before investing in the pre-trading session on 1st Feb can help with easy risk management. This allows you to figure out how much loss you might bear and if you can manage that risk or not.
This further helps you assess all your investment risk and ensures that there are no surprises later in the day.
- Assess Investment
Have a clear understanding and assessment of all your investments, and make any necessary changes or adjustments required in the pre-trading session. This will help you modify your investments to be more suitable for the budget session market.
- Monitor and Review
Lastly, on the first day of the budget, the market might fluctuate so you are required to monitor all your investments throughout the day. Monitoring the stocks and market closely can help to prepare yourself for the coming days.
Review all your investments, profits, and losses at the end of the day to analyze the market trend and prepare a strategy for the coming days.
With all these points under consideration before making any investment decision on the budget day, beginner stock traders can ensure to make better decisions. Furthermore, you can learn more about trading with Strategic Alpha’s online courses.
These are specially designed to offer beginner stock traders the knowledge, and expertise required to manage their investments once they start their trading journey.
Conclusion
The budget day is going to be a significant event for the stock market as well. Beginner stock traders are required to not make any major investments before analyzing the market thoroughly.
For a clear understanding of the fundamentals of stock market trading, start your trading online courses which can help you learn details about the market.
FAQs:
Beginner stock traders are required to pay attention to the upcoming budget as the budget is going to have a significant impact on the stock market and might fluctuate the market as well.
Prepare yourself for the trading sessions around the budget announcement by analyzing the market thoroughly, following the budget announcements, and understanding what changes it can bring to your investments.
Some of the major sectors that are to be impacted by the 2025 budget include manufacturing, retail, real estate, healthcare, hospitality, digital technology, and finance.
