How to Earn 5000 per Day in Stock Market: Invest INR 1,000,00 in Equity & Earn INR 12,50,000/- for 250 Days, which is 1.05% per day. Want to know the practically possible strategies?
Here is a detailed article about How to earn 5000 rupees per day from the stock market with simple research & small capital.
How to Earn 5000 per Day in Stock Market
The stock market remains open for 250 days a year. On a daily investment of INR 1,00,000/- you can get a return of 12,50,000/- provided you find an increase of 1.05% per day in holdings.
Likewise, if you continue to earn a daily 1.05 percent profit on 1,00,000 for 1 year (250 trading days) then you will have made a profit of INR 12,50,000.
Is it Possible to Earn 5000 per day on a daily basis?
Is it possible to make a consistent profit daily for a year? The answer is yes, said stock experts. You can achieve a target of earning INR 5000 per day on a 1,00,000 investment by following simple steps.
The below lines relate to the selection of stock for purchase and the utilization of technical tools for the precise identification of stocks. In addition, the significance of the stop loss concept, and key points to be borne in mind when conducting intraday trading.
Everybody enters stock markets with a single objective, to make money, money, and money. It is fine dreaming about and making it happen too.
But you need to understand the slippery terrain you shall face in your investments in equity stocks, and commodity markets beyond.
Let us assume that you are setting a target of earning at least INR 5000 every day for which, you will have to be absolutely planned and go emotionless.
You will need to adopt every possible strategy made available to meet your desired ends. Below are the few facts and figures discussed to make it understandable for you the way it is essential to optimize your investments in intraday trading.
Intraday Trading Limitations:
When you want to earn more money in Intraday trading a thing that should never be forgotten is, you will have to sell out your purchased stocks on the same day, and depending upon the stock movements you may make money over investment or not.
If your stock is purchased by others on the same day then whether you make money or obtain a loss the money gets transferred to your trading account in the next two working days. In case your shares put on trade do not get sold out then they shall be released to your demat account within a week.
A proper careful analysis of the market volatility, selective application of strategies, and cool-headedness alone can enable you in making marginal profits by skipping impending losses in day trading. Remember, a thumb rule, In an extremely short-term investment like day trading, the higher the investment, the higher the return that involves the highest level of risk factor.
To make precise calculations on the buying and selling of the stocks, you should utilize technical tools that ensure precise stock price movements.
Technical Tools to Predict Stock Price Movements:
When you are determined to conduct intraday trading then you must have a keen knowledge of technical analysis of the price movements of stocks.
You must have a clear-cut understanding of the concepts like moving averages, triangle and rectangle patterns, and flat-top breakouts.
These are the basic tools that enable you to predict the price movements.
1. When Should You Buy Stocks in Intraday Trading?
If you find an increase in stock price by at least 3 percent for three consecutive days then you can try to fetch that specific stock for a purchase.
For instance, in the second week of July 2023, Mazagon Dock Ship Building company had a share value of INR 1591.9 with a weekly change of 23.5 percent continuous rise in the stocks.
And, the average stock rise per day is 4.7 percent and hence such a stock should be preferred for buying.
2. What is Stop-loss? How is it applied in Intraday?
After proper analysis when you move forward to purchase stocks in day trading you must be cautious at the selling price and avoid a possible loss by the end of the trading day.
It is done through impressing stop loss more importantly when there is a huge variation in the stock price movement.
Usually, the stop loss must be 1 percent of the total stock price.
In this case, it should be INR 1592 – 16, i.e. 1576, and if the stock price reduces beyond the specified stop loss value you must prepare to sell at any cost.
Points to Remember for Intraday Trading:
Intraday trading happens in a short-term environment of a few hours when compared to long-term trading of weeks, months, or years. Hence, your must concentrate on the extremely volatile stocks which give 2-3 percent movement daily.
Study different markets and even various sectors for making an investment, diversify your investment, and switch over whenever it is essential.
Before making an investment, do a proper technical and fundamental analysis of the stocks.
Involve your investments in trades that hold liquid shares with lower lot sizes and higher volumes. To reduce the risk in day trading you must put a stop loss after after purchasing shares.
Read the expert’s views on the importance of stop-loss in trading.