- Every individual or investor comes intending to make a profit in the stock market.
- If you are not making a profit, then earn money in the stock market.
- Every investor can earn money in the stock market, provided he has the required knowledge, skill, discipline, experience, and ability to time the market.
- Many people will fail here and blame the market for the same.
- Rather, the market is always right and will give the trader a chance to make a profit, irrespective of the direction it will move.
- Hence, trading is considered to be a strategy-based art.
Can I earn Rs. 500 daily from the stock market?
- The answer to the above question is yes, but only if the trader has the required knowledge, skill, discipline, experience, and ability to time the market.
- There are a few ways through which you can achieve this fundamental goal of earning Rs. 500 daily from the stock market.
The ways are as stated below:
Focus on entry and exit points
- Entry and exit points are considered to be the pillars or foundation of the stock market.
- Every trader will have to identify these points.
- Once the points are identified, it will be easy to benefit from the movements in share prices.
- Before placing any order, it is very important to determine the entry as well as exit points and the price objective of the stock as well.
- If the stock is trading below the price objective, it is considered a good time to invest.
- This is because traders will benefit when the stock touches the price objective.
- This will also ensure that the traders will not get carried away by the slight increase in the stock price.
Must Read: How to Earn 5000 Per Day in Intraday Trading?
Take small profits and do multiple trades
- The prime intention here is to make a regular income.
- Due to this, the traders will be able to concentrate on small profits and do multiple trades.
- Traders have to keep in mind that it is possible to make 2-3% profit on a frequent basis in a single trade.
- This strategy will help them achieve profitability by increasing the number of winners while also sacrificing the size of the wins.
This strategy revolves around the following three basic ideas:
Trade stocks in the news
- Momentum in either direction is very much essential for the stock to provide a significant intraday return.
- News that is based on earning reports, orders, upgrades and downgrades, FDA announcements, product announcements, economic data releases, and other micro and macro issues will push stock prices significantly in either direction.
- Tracking the daily news and also comprehending it will help the traders pick stocks with momentum and place trade bets accordingly.
- Trading in momentum stocks will also increase their probability of making profits, which will in turn increase their daily income.
Stop loss discipline
- One of the golden tips to maximize profits in the stock market is to stop trading for every intraday trade that you take.
- A trader will decide upon the percentage of the stop loss to be applied, and that too depends on his risk appetite as well as the volatility of the stock.
Application of the stop-loss will be helpful to the trader in the following ways:
Minimizing the trading cost
- This will help the trader to maximize his quantum of daily profit by reducing the trading cost.
- A trader should understand that every trade that he will take will come with a cost and are compulsorily incurred irrespective of the profits or losses made by them.
- The trading cost comes with several other charges.
They are as follows:
- Transaction costs will impact the day trading more as it usually involves huge volumes and a high number of transactions.
- Every trader should focus on reducing the trading cost.
- This can at times erode the profits that the trader will make.
- Thus, the broker needs to open a trading account with a discount broker as they tend to charge low brokerage.
Conclusion
If you follow the above principles, then you can achieve the target of earning Rs. 500 daily from the share market.
Frequently Asked Questions (FAQs)
Q1) Can I earn Rs. 500 daily from the stock market?
Yes, you can earn Rs. 5oo daily from the stock market by following the laid-down principles.
Q2) Can we earn daily by trading?
You can earn daily from the stock market by investing in good stocks.
Q3) Which trading style is best for beginners?
Day trading or intraday trading is the best for beginners.
Q4) What is the golden rule of trading?
Let profits run and cutting losses short is the golden rule of trading.
Q5) Which site is best for trading?
Zerodha is best for trading.
About Us
The Nifty Trading Academy is our institute for stock market training and technical analysis. We also provide in-house live market training. We also upload blogs for the same as well as other economic factors. Feel free to read our blogs and comment.