Swing Trading with Little Money

Yes, you can start swing trading with 1000 rupees and make short term profit, say up to INR 500.00. Entertain yourself in the learning process by utilising this investment of INR 1000.00 as an opportunity to conceptualize and understand the stock market.

You must not dream of making huge profits with it, but utilise this investment as a learning process on stocks. You should find all the basic procedures involved that lets you understand the buying procedures of a stock. Along with, also learn about your demat account.

For a demat account, you must also line up with a stock brokerage company that provides effective stock services at a price affordable to you. In that way, Zerodha provides online services that charge only INR 20 per trade whether it is buying or selling a stock/stocks.

With this little investment, you must view the intrinsic value, how to pick a right stock, know the basic terms like stock liquidity, volatility (stock price fluctuations), strike price, stop loss. You must also learn when to buy a stock or sell a stock in the stock markets in swing trading and in it, everything gets finalized in a few days to few weeks, you win or lose money.

In the Indian National/Bombay stock markets, Monday, Tuesday you will make out a lot of buying activity. By the end of the week, say Friday, Saturday it is a sellers market, you can plan to sell your bought stocks in swing trading.

Now the question is, if you want to make INR 10,000.00 investment then with such a nominal amount where should you plan to invest. You should not get worried when company stocks keep on soaring higher and higher thereby making it impossible for you to make a purchase. Remember, there is space for everyone in the stock market provided you need to accommodate as per your trading account capital. So, check for a well to do company, buy a stock that starts at INR 100 and lies somewhere around INR 500. Once you are impressed with the stock price try to purchase at least 2 units of a particular stock.

You must select a company whose products and services are visible in physical form. They can belong to banks, automobiles, consumer durable products, etc.

Do not jump to conclusions, before you select a stock make a detailed study and research on the stock for at least a week or so.

In your research you must view all parameters like the company’s fundamentals and the financials such as profits, P/E ratio, ROEC, ROI, Growth rate, annual reports, performances of the company’s product and services and most importantly their business models.

Note:

Not to forget, this investment is just like a practice session and hence even if you lose it do not overreact emotionally in this scenario.