How to earn 1 Lakh per day in Swing Trading?
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Earn up to 1 Lakh per Day from Swing Trading Strategies
Dreaming to earn 1 lakh per day in the stock markets is possible through swing trading techniques when compared to other methods.
You may find it a mystery to earn 1 lakh per day until you break out from the myth that trading in the stock market is highly dangerous.
Please patiently, read out these below lines so you can form a rough sketch before you begin to earn 1 lakh per day consistently.
Basically, you must realize that swing means a turn in the direction of the share prices in the upward, downward, and sideward directions depending upon the trading.
Technical Analysis for Swing Trading
You can understand it better in candlestick patterns on the swing movements that define the entry and exit of your stock investments.
In a nutshell, swing trading characterizes short-term profits, low risks, more likely to be a part-time job with less emotional impact and more time to act on, in taking positions.
Hence, laying hands on swing trading is always comforting when you are a beginner rather than taking a deep dive into intraday trading or futures Options.
Let me expose you to a few techniques that take you closer to your earning goal.
Bear in mind, a few elements that shall cushion your conscience, such as remaining disciplined, keeping up a realistic approach, double checking your investments. Moreover, conduct extensive research before chalking strategies.
In swing techniques, you may introduce strategies like trend-catching strategy, Fibonacci retracement, breakout string strategy, trading off support or resistance, and fading trading strategy.
Using these, you can make decisions about when to buy/sell shares to make your 1 lakh rupees per day.
Identifying conducive positions and selling/buying stock is a skillful game and you can obtain it by good practice. However, if you apply other trading techniques like intraday trading, derivative trading, and delivery trading, it can also add impetus to achieve your daily targets effectively. In short, they are:
Intraday trading: You can earn high returns in a high-risk environment as the markets are absolutely unpredictable. You need to apply your thoughts quickly and act skillfully to make your dream come true.
Derivative Trading: Derivative trading is the inclusion of futures and options that yield a high risk-reward ratio, and these derivatives enable you to participate in more contracts than your regular trading. You can continue to trade derivatives by paying a nominal amount also known as a margin rather than making a payment of the actual amount of the stock investments.
Delivery Trading: It comes into the picture when you buy shares and they get credited into your demat account in a span of T+2 days. It means, your asset gets into account with a time delay of two days, and hence it is time-consuming.
Earn 1 Lakh Per Day in Swing Trading
You may have heard somewhere that you can earn 1 lakh per day in the stock market but it is possible in a hypothetical situation.
Let me first reply to your question, swing trading is a short term return on your investment where your money gets locked from a few weeks to few months. By keeping an account of the price of stock and the volumes it holds you can set a position to option put (sell) your option call (bought) stocks and earn money, say a 1 lakh but happening it every day is quite difficult, never fall prey to myth.
Although it may not be possible to earn 1 lakh per day in swing trading, you can still aspire to make 1 lakh money daily complementing other trading techniques as well.
Intraday Trading:
Intraday trading the option call and option put is completed in a day and whether you make money or lose money it gets decided on the same day of buying since the buy-sell trade is to complete on the same day.
Your earning in Intraday is absolutely dependent on your investments, market volatility. Moreover, you can make money to the order of INR 100 to INR 10,000 and can also lose money on your investment otherwise.
In intraday trading your investment is low when compared to delivery trading. Usually margin payments are encouraged to five times the trading capital by your stock brokers.
Delivery Trading:
In case you are losing money then you have an option to convert your stocks into different trading modes known to be delivery mode.
Delivery trading involves selling activity after one day, months, or years altogether. In the delivery trading, your trading account needs to maintain complete funds for its transactions.
Swing Trading:
If you are willing to buy shares in swing trading, you will be given a leverage by the stock broker to a certain amount known as margins. That means, you need not have a trading capital of your investment but only a part need to be paid and the rest of the funds are paid in form of margins by your stock broker.
In this way, you can reach your targets faster when your trading capital is low in a conducive stock market scenario.
Caution:
You must realize that a fall in stock values can cause you to lose money and make you go bankrupt because you have already taken a loan from your stock broker. Therefore your desire to earn 1 lakh is good but you need to trade craftily.