I started trading and investing in the stock market in early 2013 and at that time I was clueless about share trading and investing. Same as other beginners I also did lots of research on the internet about how to earn money in share market daily, how to earn money in share market without investment, How to earn 1000 per day from share market, share market tips for beginners, How much earning in stock market, How to invest in stock market, how to trade in stock market, etc. In this article, I am going to cover up all of these queries and also guide you about How to avoid loss and earn consistently in the stock market.
When I started trading in stock market, I booked a huge loss in the beginning because of lack of knowledge and proper guidance.
Many beginners in the stock market ask a question- How to earn 1 lakh per month from share market, How to earn 1000 daily from share market etc. The answer is- there is no thumb rule for earning in share market. However, there are few tips which can help you to earn handsome money from stock market if you implement it correctly.
I would like to tell you a fact-based on my experience that 90% of people are losing money and only 10% are making money in stock market.
If you want to be in that 10 % of successful trader, you have to follow some strict rules in stock trading/Investing which is narrated below in details:
Ways to Make Money in the Stock Market
There are two ways in which you can earn money in stock market-
- Share trading, and
Before moving to the stock market trading tips and strategies first, understand the difference in stock trading and stock investing in short.
Trading in share market
Share trading is the most popular earning method from stock market among beginners. Profitable stock trading needs lot of analysis, research, calculation, and close monitoring. Once you catch the logic behind stock price movements, you can earn lot of money from share trading. In this method you don’t hold your stock for the long term instead, it is held with the intention of selling with profit in temporary price fluctuation.
Intraday trader buys and sells share on the same day and swing trader hold It for few days or weeks.
Investing in Share market
Investing is done to maximize wealth in long run and it is more secure and consistent ways of wealth maximization through Stocks. Direct ways of investment are buying direct stock of a company and indirect ways are through Mutual funds.
If you are well aware of the financial and technical analysis, national and international happenings, then you can choose the right stocks and sectors and invest for short-term or long-term into the stocks. Alternatively, if you are not able to do so much research for stock selection, you can choose the Mutual funds and can invest indirectly into stocks.
Lets now discuss our main topic on how to earn money in share market daily and how to avoid loss and earn consistently in the stock market. Here are tips for how to trade in stock market for beginners:
Important Tips On How To Earn Money In Share Market Daily/ How to trade in stock market and How to avoid loss and earn consistently in the stock market
1. Technical Analysis Is Must For Intraday Traders But Also Learn Fundamental Analysis:
This is really helpful for intraday trading and in stock market. In technical analysis, traders predict price movements by examining many charts, indicators, and historical data of particular stock. This is the way to avoid loss and earn consistently in the stock market.
Technical analysis helps traders and investors to understand leveraging techniques like statistical analysis and behavioral economics. Technical analysis helps traders to predict the future price of stocks based on given past information and data.
Fundamental analysis is the analysis of the company’s financial statements, financial health analysis, market and competitors analysis, etc. It also covers fundamental factors like economic strength of the country, GDP growth, and factors like government, RBI policy, interest rates, production, earnings, manufacturing and management of the company.
Most investors use both technical and fundamental analysis to make decisions.
2. Track The News For Your Stock
As a trader, you must be interested to know about which stocks and going to gain today and which one should you buy or which company stocks are going to perform better, what’s are the quarterly result and performance. The answer to all these questions can be found in the news and it helps the decision making for your trade.
However, there are lots of stories on the news which should be ignored, for this your experience matters. My personal guide would be- Read information coming through reliable sources and don’t work on rumors. Some authentic news reports can tell you a lot about the stocks in the news and accordingly you can execute your trade to earn the profit. It is advisable to do your own research before believing the news blindly and putting your money in stocks. It is one of the tips on how to earn money in share market daily.
3. Don’t Be Greedy, Make Small Profit And Execute Multiple Trades In A Day
As I am guiding you for how to earn money in share market daily, the Main intention here is to avoid loss and earn consistently in the stock market, therefore it is advisable to sell your share on small profits and execute multiple trades daily. You should not aim for a fix monthly or daily earning like few people ask me- How to earn 1000 per day from share market, how to earn 1 lakh per month from share market etc.
Intraday traders should focus to make 2-3% profit in a single transaction. However it is difficult to achieve the target of 2-3% profit in every transaction, Strategy would work here is- Make a small profit, trade for low volume and execute multiple trades.
4. Most Important- Always Use Stop Loss
This is where most of the traders make mistakes. It is one of the essential tips on how to earn money in share market daily. For implementing these rules every intraday stock traders should swear to use the stop loss always. It minimizes the losses and saves traders money in case of a heavy drop in prices.
It’s an automatic process where an order placed automatically to buy or sell a stock once its price has reached a specific level. Most traders use this feature essential for increasing profitability in the share market. Stop losses also protect traders from various market fluctuations. This is the most important point to how to avoid loss and earn consistently in the stock market.
If you want to earn money in share market daily and protect your capital, Implement the stop-loss order in your every transaction.
5. Don’t Earn For Stock Brokers- Minimizing Your Trading Cost
Most of the beginner traders end up earning for their stockbroker only. Means, at the end of the day their profit is equal to trading cost. You should always try to minimize your trading cost to maximize the earning from share trading daily. You should keep in mind that every trade you place incur a certain percentage of cost whether you make a profit or loss from trading.
Brokerage fees of broker, Securities Transaction Taxes/Commodity Transaction taxes, SEBI charges, Stamp charges, Turnover charges, GST and AMC (Annual maintenance charges) among others.
You can not control the Govt charges, SEBI charges, and taxes but you can minimize the brokerage. You should be extremely careful while choosing the stockbroker as they charge many hidden charges. It should be keep in mind to avoid loss and earn consistently in the stock market.
6. Some Bonus Tips For Earning Money From Share Market
-Never trade with emotion
-Never invest your emergency/surplus funds
-Follow a disciplined approach
-Avoid the hard mentality about particular stock/trade
Guide to How to earn money in share market daily does not end here, You have to be extremely careful while doing Stock Selection for trading.
How to trade in stock market: Tips For Stock Selection
1. Price Movements
It provides a prediction for stock movements. You should study the price movements of shares you want to trade in and keep a close watch on how the price is moving. The fluctuation in share price is an indication of how profitable this stock trading will be.
Volume trend is another popular way to track a stock. It shows how much shares of the particular stock were purchased and sold in a given period.
An increase in the volume of the stock shows that more people are dealing with the stock and it is performing well and will continue to rise. Trading in those stocks will enable you to earn money from share market daily.
3. Supply-Demand in Share Market
Demand and supply of stock tell a lot about future prices. If the supply of a stock ie. the number of shares up for sale is more, then you should reconsider while buying that stock because more people are selling that stock. If the demand for stock is high ie. number of shares for sale is low, It is a good sign for the increase in price.
You can’t trace it manually, Only a technical analysis will help in this decision.
Before moving to put your hard-earned money in the share market first, you need to understand that share market is unpredictable. Sometimes even experienced traders with advanced tools are not always successful to take correct decisions. Many times indicators show that the market will go up but in reality, it goes down.
So, if you find the market not moving according to your research and expectations, it is advisable to close the trade, exit the position and avoid losses.
Earning money from the stock market is not impossible if you use your knowledge, Research, charts, tools, and experience.
With these tips and guidance, You can try your hand to earn money from share market daily. Just remember that the ability to make profits is in your hands. It all depends on the choice of stock, the technique you use, the broker you select, and the ultimate decision you make.
Hope you find the above article ” How to earn money in share market daily ” useful. It was all about how to trade in stock market and how to avoid loss and earn consistently in the stock market.
[Please note that the above article are only for education purpose and we don’t encourage or recommend any stocks, broker, tools, etc.]
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