How to earn money from share market

Investing in stocks is simple, but not easy. It requires passion, patience and discipline.

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Everyone who comes to the stock market comes with a desire to earn well. The stock market is one of the most attractive ways to make money, as it offers better returns than other routes. Most of the people coming to the stock market ask - how to earn 1000 rupees per day from the stock market? But, many of them fail to do so due to their lack of knowledge and experience.

Movement in the stock market is controlled by a wide variety of factors that are both domestic and international. These factors are situational, and are not under anyone's control. Since the daily movement of the market is difficult to predict, experienced traders aim to earn a certain amount of money in a month instead of trying to reach specific daily goals. Everyday may not provide an opportunity for trading, and if you earn from the stock market by trading every day, you may incur heavy losses due to this. If you still want to trade daily, then you should practice paper or virtual trading, and if you succeed in it, you can pursue real trading.

Intraday trading

There is no investment limit. You can start with Rs 1000 or with Rs 1,00,000. There is no limit in the capital. Since there are no restrictions, there is no limit in earnings. In theory, one can earn money from the stock market is unlimited.

How to earn 1,000 Rs per day from share market?

If you want to earn money every day, then you should join intraday trading. In intraday trading, you buy and sell stocks within a day. Stocks are bought not as investments, but as profit making by reducing the fluctuations of share prices.

How to earn 1,000 Rs per day from share market- what are the rules?

If you are wondering how to earn 1000 rupees per day from the stock market, then below are some strategies that can make it easier for you to make money from stocks, if you follow them closely.

Rule 1: Trade in Shares That Have High Volume

This is the first rule in intraday trading - always keep an eye on stocks with high volume or liquid stocks. The term 'volume' refers to the number of shares going from one hand to the other in a day. Since the position has to be closed before the trading hours are over, the liquidity of the stock depends on the probability of profit.

Always make sure of the stocks you plan to invest. You should pay the analysis and opinion of others only after you have done it. If you feel confident about certain stocks or indices, then only you should invest in them. List 8 to 10 stocks you want to target, and start your research on these. Pay full attention to how the prices of these shares fluctuate before investing.

Rule 2: Leave Behind Your Greed and Your Fears

In the stock market, there are two cardinal sins that you must try to avoid at all costs. Factors such as greed and fear influence the decisions that traders often make. It is best if you can take these psychological factors into consideration when you are making business decisions. They sometimes bite traders more than they can chew, which is never fair. It is important to finalize only certain stocks and positions concerning them. No businessman can earn profits every day. If you try to run after that mirage, you will only disappoint yourself again and again. When the wind is against you, you will have no choice but to book the loss. Therefore, as an intraday trader, you should always keep an eye on the boundaries, and try to stay within them.

Rule 3: Keep Your Entry and Exit Points Fixed

Now that we have talked about the two factors that you should never let influence your decisions, let us talk about the two factors that will multiply your chances of making a good profit. When you ask "How to earn 1000 rupees per day from the stock market?" Know that the answer lies in having a fixed entry and exit point in trading. These are the two major pillars of the stock market. As a businessman, you need to identify these points correctly. Only after you do this can you think of making a profit.

Always set a stock's entry point and price target before you place a buy order. The price target is the price at which it is properly valued, taking into account its history and projected income. If the stock is running below its target price, which is a good time to invest in it, because you will make a profit when the stock once again reaches its target price, or exceeds it. Having a fixed point for your entry and exit will also ensure that you do not sell stocks as soon as prices rise marginally. Due to this trend, when the stock price increases further, you can make a big profit. Keeping fixed entry and exit points will also loosen the grip of fear and greed as it will remove some uncertainty from the process.

Rule 4: Limit Your Loss by Using a Stop-Loss Order

One of the most important aspects of intraday trading is stop-loss. A stop-loss is an order designed to limit the losses an investor may incur. You can reduce your losses by using stop-loss, therefore, you should use this strategy often. Intraday traders should take a pledge of stop loss if they want to avoid heavy losses.

The stop loss you set should be proportionate to the target you have. As a beginner, you should set the stop-loss to 1%. An example would make this easier to understand. Suppose you buy the shares of a company for Rs 1200 and keep the stop-loss at 1%, which is Rs 12. As soon as the price falls to Rs. 1,188, you close the position, which prevents further damage. This can help prevent your loss, thus making it easier to achieve your financial goal. How does stop loss work? The stop loss is set in such a way that if the prices fall below the specified limit, the trigger stops and the stocks are automatically sold. So, this is an extremely beneficial method. If you start a sudden drop in prices, you want to stop your potential loss.

Rule 5: Follow the Trend

When you are participating in intraday trading, your safest bet is to follow the trend to ensure profit. How is it possible that trend reversal occurs within a period of one day? Making business decisions based on a possible reversal of trends can lead to periodic profits, but, in most cases they will not.

If you are thinking how to earn 1000 rupees per day from the stock market, then you can follow these guidelines-

  • Select some stocks you want to target
  • Track the movement of these shares closely for at least 15 days before you take any action
  • In this period, analyze stocks in various ways based on volume, indicators and oscillators. Some indicators that are most commonly used are the supertrend or moving average. You can take help of oscillators like Stochastics, Moving Average Convergence Divergence or MACD and Relative Strength Index.
  • If you follow your target shares regularly in market hours you will achieve a high level of accuracy in a few days. You will be in a better position to explain price movements.
  • Based on the indicators you used and your analysis, you can now fix your entry and exit points.
  • You should also decide the stop loss and your target before investing.
How to Earn 1000 Rs per Day from Share Market- From Multiple Trades with Small Profits?

Let us try to discuss the question how to earn 1000 rupees every day. Let us take a look at the options of day trading, resulting in a daily profit of Rs. 1000. Almost every broker's company currently makes a profit on capital. Therefore, investors can start investing with small capital. One strategy you should swear in is small profits from multiple trades. Lack of proper knowledge is the most frequent cause of a bad business. Suppose you buy a stock valued at Rs 200, and are waiting to go up to Rs 204 or Rs 205, there is a very low probability that it will ever happen over a period of one day. It is impractical to expect a 2% profit in one step, and you will only lose money if you wait for such a profit. Therefore, instead of waiting for a big break, focus on making small gains from multiple trades.

Synchronise Your Moves with the Market

Like a living creature, the market can never be predicted with 100% certainty. It is possible that there are times when all technical indicators point towards a bull market, but, the decline still occurs. Sometimes, factors are the best indication and provide no real guarantee. If you see the market moving in a direction different from your expectations, it is best to call it a day and make an exit to prevent further losses.

Returns from stocks can be profitable, but following the suggestions outlined above, earning a steady profit every day can be satisfying. Intraday trading gives you more profit, which gives you decent returns in a day. If your question is how to earn 1000 rupees per day from sharemarket, then intraday trading may be the best option for you. Feeling a sense of satisfaction will go a long way as an intraday trader. In the equity market, profit and loss are two sides of the same coin, and are inseparably linked. If you want to make a profit, you have to make losses from time to time. It is a part and parcel of stock market and intraday trading. But, despite all this, it is not always difficult to earn a steady income from the stock market, if you take the time to gather enough knowledge and expertise.
How to earn money from share market How to earn money from share market Reviewed by Digitaltech on May 26, 2020 Rating: 5

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