How To Earn Money In Share Market

If you are stuck in a 9-to-5 job then you will not get sufficient time to explore any other activity to generate additional income. Your wealth would be limited to what you can save from your salary. 

If you want to make money every day, you should indulge in intraday trading. In intraday trading, you buy and sell stocks within a day. Stocks are purchased not as a form of investment, but as a way of making a profit by harnessing the fluctuations of the stock prices.

Making money from share markets requires just a few things

• Initial investment (can be as little as Rs. 10,000)
• An internet connection
• A trading account 
• The right investment knowledge.

Take small profits and do multiple trades

Scalping is a day trading technique where an investor buys and sells an individual stock multiple times throughout the same day. The goal of a scalper is not to make an enormous profit with each individual trade they make, but rather to make a small profit over many little trades.

Trade stocks in the news

Momentum in either direction is very much essential for stock to provide a significant intra-day return. This is usually fueled by news flows, which have a direct impact on the price of a stock.

News based on earnings reports, orders, upgrades/downgrades by brokerages, product announcements, FDA announcements, economic data releases, geopolitical factors, and other macro and micro issues can push stock price significantly, in either direction.

Tracking daily news and comprehending the same will help the traders to pick stocks with momentum and place their trading bets accordingly.

Stop-Loss discipline

Stop-loss discipline is one of the most talked-about things in the stock market and holds immense importance for trader inequities. Stop-loss is an automatic order that an investor places with the broker or agent by paying a certain amount of brokerage.

Minimizing trading cost

This will help a trader to maximize his quantum of daily profit. A trader should keep in mind that every trade that he places comes with a cost and are incurred irrespective of profits or loss made by them.

Trading cost includes brokerage fees, Securities Transaction Charges/Commodity Transaction Charges, Turnover charges, GST, SEBI charges, Stamp charges, and AMC (Annual maintenance charges) among others.