Everyone wants to earn a lot from the stock market as they find it a great way of generating outstanding intraday trading returns in a limited time.
Beginners who have just started trading often find ways of earning at least Rs 1000 daily from the stock market. However, they failed to do so because of a lack of financial knowledge and information.
Needless to say, the stock market is highly volatile in nature and if you want to invest money, you are required to do a lot of stock market research and some expert advice from the stock and trade analysts.
If you get a chance to deep down into the stock market, you will get to know that trading is not gambling, in fact, it become a source of income for many.
Now the question again arises: whether someone can earn Rs 1000 daily from the stock market. The answer is Yes. you can earn a small but regular income from the stock market.
1. Focus on Small Profit and Go for Multiple Trades
If you want to earn regular income from the stock market, it would be feasible if you make small profits and do multiple trades in a day. Here, one thing you should keep in mind is that it is impossible to churn out 2-3% profit from a single trade. Hence, it is required of you to perform multiple trades in a day.
This strategy will help you get good returns by enhancing the number of winners and sacrificing the size of wins.
Hence, it is important for traders to book profits if he gets any small opportunity.
2. Focus on Trades That Have High Volume
It is suggested to keep an eye on shares of high volume. Here high volume refers to the shares that pass from one day to another day. As in intraday trading, the position has to square off before trading hours end, the liquidity of the stock is what the profit depends on.
It is equally important to do a bit of stock market research before investing. See, if you feel that the stocks you have selected will give you profit, only then you should select stocks. Make a chart and make a list of 8-10 stocks and then invest in them.
3. Trade in the Stocks which are in News
Picking momentum is very important for a stock as it will give you outstanding stock trading returns. Recent news which is based on product announcements, FDA announcements, reports, orders, and economic data releases can push the stock market in an upward/downward direction.
4. Maintain Stop-Loss
If you want to book more profits, you need to implement stop loss in trading for each trade. Stop-loss can be applied according to the trader’s risk appetite and the volatility of a stock.
Stop-loss help traders in several ways which are as:
- Helps to make money faster which is crucial for uplifting profitability in stock trading.
- Allows a trader to maintain a lower concentration of risky stock positions for a longer length of time. As a result, the number of open positions that are exposed to market changes is reduced.
5. Minimizing Trading Cost
A trader needs to maximize his quantum of daily profit. An investor should think that every trade he does, should have minimum brokerage costs. Stock trading costs include commodity transaction charges, brokerage fees, SEBI, turnover charges, GST charges etc.
Investors who want to earn Rs 1000 from the stock market are advised to trade in multiple trades and make small profits from them.
It has been seen that many traders lose money as they aim at huge profit from the stocks which is not possible in day trading. For instance, if you buy a share worth Rs 300 and wait to go prices up by 2% viz 305, 306. It’s not possible in real-time.
If you expect 2-3% profit from a single trade, it would leave you dissatisfied and you will only lose money. Hence, it would be imperative, if you keep focusing on booking small profits from multiple trades.
Conclusion
Traders earn huge profits from intraday trading. If you are interested in short term trading and investing, the above tips and tricks will help you to get outstanding returns from the stock market.
