How to Earn 500 per Day in Swing Trading

Your question on earning 500 per day in swing trading is pretty logical in nature. But, let me tell you, I would like to elucidate the essentials that should be kept into consideration. Just to earn a profit of at least 5 percent per day on an investment of INR 100,00.00 daily.

For instance, you need to set a monthly target of at least 25 % profit. If you sum up the small profits on the invested amount of Rs. 100,00, it shall provide a return of Rs. 1.45 lakh in a year. And, if you spread the earned money (Rs. 1.45 lakh) it will make a daily profit of Rs. 500 over a year.

Below you will notice information that can serve your purpose in maintaining INR 500 as your daily earnings.

1. Research for swing stocks for short term profitability.
2. You must maintain swing trade returns (5% -10%) gain every week.
3. Follow a strategy 3-to-1 profit loss management portfolio.
4. Identify breakout volumes for shorter time frames.

Research for Swing Trading Stocks:

For obtaining an objective of earning INR 500.00 per day, swing trades need fundamental analysis for a short period.

You will have to adopt recent, upcoming events, and tactics. You must calibrate certain parameters that turn out to be the significant indicators such as sales growth, new product launches, new strategy announcements by the companies, quick ratios, etc.

5% to 10% Gain Every Week in Swing Trading:

Swing trades never focus on gains developed over months, or even years. Its trading period is normally 5 to 10 days and if managed properly you can make a lot of small wins. And, when you sum up those wins it will give out good returns.

The ideal return on swing trades is up by 20% in a month or about 5% to 10% gain every week that leads to a noticeable profit level.

3-to-1 Profit loss Portfolio Management Strategy:

Experts suggest portfolio management to succeed in your attempts to earn decently, often referred to as 3-to-1 profit-to-loss ratio.

The funda of earning is that you can make small gains and create a growth in portfolio provided you are attentive in keeping losses small.

If you keep a stop loss of 7% to 8%, then the losses on stocks can reach a maximum level of 3% to 4% quickly. If such a situation continues then this kind of loss can reduce the accumulated small gains considerably.

Identify Breakout Volumes for Shorter Time Frames:

Observe for the shorter time frames with a token, and you can find volume characteristics of a breakout. Also find the volume of shorter consolidations areas for clues.

If you can sense that the breakout volume can surpass the recent activity then it means the stocks have strength on trade. And you can opt for such stocks.