How to Earn 1000 per Day in Stock Market: Earning INR 1000 per day is tough in highly fluctuating stock markets but it is never impossible. You will have to make calculated steps while investing in shares, and commodity markets to earn good money and take all countermeasures to avoid failures.
Before getting into the earnings process in stock markets, let us try to understand the functioning of stock markets, and the kind of share markets opened up for trading.
Follow the below-given practical strategies to earn Rs. 1000/- per day with low risk and less investment.
How to Earn 1000 per Day in Stock Market?
Before learning about earning 1000 per day, let us understand the functionality of the stock market.
How do Stock Markets Function?
Company stocks are listed in the stock markets and based on their price movements you are recommended to perform safe trading to make money on your investment.
The trading process does involve buying and selling of shares either at the stock exchange or over-the-counter markets. Depending upon your preference to trade on public stocks or private stocks you are advised to act accordingly.
That means, you can conduct trading on the public stocks listed on the National Stock Exchange, NSE, or Bombay Stock Exchange, BSE. Alternatively, you can also conduct trading over the counter mediated by the dealers.
With two kinds of trading made available in the Indian stock market, you are permitted to begin trade on the IPO primary market or trade in the secondary market. As an investor, you can buy/sell shares through an intermediary agency such as a stockbroker or brokerage firm.
Knowingly, people begin to invest in share markets when markets show instantaneous price fluctuations. The reason is clear you will want extra income besides your regular income earned through your regulated profession.
Now, say, the share market follows a simple principle, the higher the risk, the greater the income, and vice versa. If you hold patience then holding a share for a long can result in good returns when sold out.
The listed shares provide dividends based on the company’s performance which is an additional income for you. Hence, purchasing blue-chip company shares can generate good returns on your investment. The underlying advice to an investor is to maintain a diversified investment.
So that the losses if incurred in one sector can be nullified by profits obtained in the other invested sector. If you plan to sell out your bought share/shares then by employing the stop-loss principle you will eventually end up in not making a loss beyond your offered selling price.
Why do you need to plan properly to earn INR 1000 per day?
When you observe stock prices in stock markets they keep varying up and down inconsistently it is due to domestic and International factors.
The price movements are difficult to predict in a day and hence you must design your strategies to obtain a fixed income from the stock trading.
If you do not agree with this argument then you will have to undertake the following steps to earn every day and they are as follows.
- Practice daily trade in paper trading or virtual trading.
What is Intraday Trading?
In Intraday trading you are free to make an investment of your desired amount, here, investing has no boundaries.
You can begin your investment anywhere from INR 1000 or even INR 1,00,000. The stock exchange makes no control over your capital investment therefore your earning can be huge as well.
Tips to Make Money Daily in Intraday Trading:
Below are the fundamental principles defined by the stock market experts.
Focused Share Selection Analysis:
- Search for shares that are traded with high volume which means they have high liquidity.
- You must remember that volume refers to the number of shares that get transferred from one person to person in a trade.
- As the Intraday trading rules never allow your shares position beyond the day trading hours you can book profit on a share when the share-liquidity is high in a trade.
- You must make a detailed analysis of the stock which you intend to purchase.
- Before you begin to start your research make a list of the stocks that you desire to focus upon.
Be Realistic, be bold, and set optimistic goals:
Remember, your calculations may not match the ongoing trade conditions and this may cause anxiety before making a final judgment.
You may encounter situations where your decisions on positions must relate to the stock itself and never set positions based on a general trend of the day.
If your invested stocks fail to reap positive results that means trading currents don’t favor your investments.
Set Limits on Entry/Exit Points
By setting an entry and exit price, you can relax and avoid unnecessary fear and frustration.\
Control your financial loss by Stop-loss Order
A stop loss is an order that allows you to cut down your financial losses. The thumb rule is in intraday trading you must make use of a stop loss order every time you participate in trading.
You may have bought a share for INR 1000 and then you must set your stop loss proportional to your set target. Say, here, you set it for one percent, then the value would be INR 10.
In case, your stock value drops below INR 1000 and the movement it touches INR 990 the stop loss limit will close the position. With the further fall in stock value, the trigger goes off and your stock gets sold without incurring a loss more than.
Make Decisions as Per the Trend:
Make a stock analysis of the last 15 days and check on a variety of parameters. They are based on volume, indicators, and oscillators.
Moving Average or the Supertrend are the most widely acceptable indicators. Relative strength index, moving average convergence divergence, stochastics can turn out to be the best oscillators.
However, these predefined parameters, and the technical analysis shall help you in deciding the best entry/exit points and stop loss.