The willingness to gain well comes in any person who enters the share market. One of the most profitable ways of generating money is the stock market, as it offers greater profits than other methods.
Most individuals who come to the stock market question how to earn money in share market daily? However, due to their absence of training and practice, many of them struggle to do so.
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Volatility
A number of variables that are both local and overseas regulate the change in the stock market. Such causes are natural, and not under the hands of anyone.
Since the everyday behavior of the stock is hard to predict, seasoned traders strive to gain a certain percentage in a period, rather than attempting to meet precise daily goals.
Each day you cannot get chances for trade in the market. You may suffer from big economic loss if you try trading in the stock market daily.
How to Earn Money in Share Market Daily?
There are three options about how to earn money in share market? We suggest you to use all three options if you wish to get confirmed daily earnings from the stock market. Here are the Options:
1. Day Trading (Intraday trading) in equity & commodity
Day trading, also referred to as Intraday, is the daily purchase and sale of stocks as well as various economic items. In certain phrases, day trading means that before the market ends, those positions must be squared-off and there is no switch in shareholdings as an outcome of transactions.
There are no restrictions, and there are no limits on earning either. Theoretically, there is no limitation to the sums of money one may earn from the stock market. Here are some rules for you:
How to do Intraday?
- Always make a list of the stocks or commodities that you wish to trade in. Keep a watch on shares or commodities with higher volume & liquidity from that list at least for 15 to 20 days before trading.
- To track these activities learn 3-4 general studies like Adx/Dms, Average True Range, Bollinger bands and Ichimoku etc on chart.
- There are two unforgivable rules which you should strive at all costs to skip. The investments that traders make most frequently are affected by aspects such as greed and anxiety. When you make investment choices, it is better if you can maintain these emotional influences in mind.
- Another major factor is entry & exit levels from the trade. While you are deciding to trade, please make a note of how much you want from this trade or how much loss you can manage if trade goes wrong. There should be a strict stop loss & profit booking point should be in your mind while trading.
- Beginners are advised to take less quantity to understand the moment of the stock.
- Try to enter the market after 9:45 am only as most markets get trend toward negative or positive by this time.
- Avoid trading in stocks that are not liquid.
- Last & the most important rule is always keep on news. News about the stock(or sector from which stock belongs to) or commodity will drive the trade either in an outstanding profit or huge loss.
Pros & cons of Intraday trading:
- You need to exit the positions within the same day.
- Profit or loss is a must in day trading.
- You can lose your profit or you lose your profit in a few seconds.
- Most of the online trading apps only allow you to trade until 3:15 pm while the market remains open till 3:30 pm.
- If you didn’t exit your positions after 3:15 pm these trading apps will exit your positions automatically & charge you extra as well.
2. Future & Options:
The important forms of stock derivatives exchanged in the equity market are futures and options. These are agreements signed by 2 members to trade an inventory asset at a later deadline at a fixed rate.
These contracts aim to offset the market volatility inherent in trading on the equity market by holding up the rate in advance.
There are 3 types of contracts. However, in the equity market there are 2 types of contracts weekly & monthly. Whereas commodities have Yearly contracts as well.
Here are some points you need to consider while trading in Future & option:
What are some tips to trade in Future & Option?
- Stop losses as well as profits goals are a must when trading in F&O.
- A huge amount of the quantities in trading futures and options are algorithmic in nature, and they can disappear as quickly as they show up. Prior to starting F&O positions, every time review for volatility.
- It is a terrible choice to purchase deep out-of-the-money (OTM) options (calls or puts) simply because it is really cheap. A low-priced option is not always an attractive choice.
- There are two components to each alternative, viz. Benefit in time and intrinsic valuation. If the call or put option is out-of-the-money, then it is quite possible that it will expire without benefit. So, don’t keep too near to expiry on long options.
- With various layers of calls and puts on the long and short side, investors prefer to establish complicated schemes. The threat is two-fold. Initially, whether you are net long or net short, you are not too confident. Then there is the issue of prices. It is necessary to exit each leg of the options trade as well as you have transaction costs and statutory expenses for every leg.
- In your calls, you are likely to go incorrect, but if you trigger stop losses repeatedly, then you should return back to the planning board and rethink your method.
Pros & cons of Future & Option:
- You need to exit the positions weekly or monthly according to the contract even in loss.
- You can convert your positions.
- Loss or Profit is not must while you are making positions in Future & Option.
- News can break the trade at any trend anytime so be proactive.
3. Buy Today Sell Tomorrow(BTST):
This is the safest trading option for every who wish to know how to earn money in share market daily? if you fear of loss. BTST option is the most popular option among traders. Making a list of stocks or communities is must for every trader in any kind of trading you want to initiate.
After making the list track those stocks for 1 or 2 weeks. Try to find some stocks with potential of up trend up to 5-10% within a few days or weeks in a shorter time span.
How to do BTST trade?
- Track the news about the company or related industry.
- Track the upcoming events of the share or related industry.
- Check the fundamentals of the company like previous trading records or shareholding patterns etc.
- Try to do BTST in large cap or nifty 50 stocks so if you are unable to get the profit at least you will get the chance to exit the position without losses.
- Keep stop loss & profit booking point in your mind for smooth exit on time.
- Learn some market chart studies to get a better entry point.
- In starting buy less quantity to understand the stock
Pros & cons of BTST:
- Sometimes there will be extra charges than normal brokerage charges while you sell the trade on the next day. Sometimes it can go up to 20% of the stock value. However, it is a rare chance.
- You can keep the stock for a longer period if it doesn’t perform in the next few days.
- Risk of loss is near to zero if you choose good stocks.
- You will get the dividend & other benefits as well if you keep the stock for more than 2 days before the record date.
Conclusion
There are many options to trade in the share market. However, we just discussed three basic options to know how to earn money in share market daily? Most people want high returns within a short period of time which is nearly impossible.
First you need to spend some time in the market before starting trading in the market. Beginners must avoid putting a big amount in the share market as they are not aware of the full risks behind the stock.
We always advise people to put a small amount in the market with different nifty 50 stocks so they will be able to understand the basics of how to earn money in share market daily?
Another major thing is to look at the company business & ask yourself if you think that it will grow in the near future or not. Mostly stocks which are in trend & news are most suitable stocks for earning fast.
We hope that we are able to answer your question: how to earn money in share market daily? To open the account in best trading app Zerodha click here to earn profit in share market.
Other Interesting Blog Related to how to make daily profit in share market?
Intraday Trading Books for Indian Market
FAQ About How to Earn Money with Share Market?
Difference between BTST & STBT?
BTST is Buy today sell tomorrow where STBT is Sell today & buy tomorrow.
Which one is better Intraday or long term investing?
You cannot choose one option above other because it all depends on the market situation. In a market like corona times Intraday or BTST is a better option as the market is not stable. Whereas post corona time when the market gets stable then we will suggest long term investing as market volatility will be not much.
F&O will be safe for beginners?
Yes, it is safe for beginners. However, you must learn how to trade from an expert as it is quite difficult to make a trade in F&O than the cash market.
Which trading app has less charges for intraday & BTST?
There are many online trading apps in the market. However, as per our experience Zerodha is the best option for beginners.
What is the percentage of making profit or loss in daily trading?
Nobody has a perfect answer to this question. However, if you are thinking of earning money daily in the stock market then you should be ready to face the losses as well. There is a risk involved in every trade.
