Are you intrigued by the idea of earning from the stock market? Many people dream of making substantial profits through trading, but it requires knowledge, skill and dedication. In this comprehensive guide- we will explore how to earn 1 lakh per day from share market.
Table of Content
Understanding the Share Market
Before delving into strategy for making profits- it’s essential to understand the basics of the share market. Share market, also known as the stock market, is a platform where traders buy and sell stocks (shares) of publicly listed companies. Stock prices fluctuate based on market condition, company performance and economic factors.
Develop a Trading Strategy
To earn 1 lakh per day from the share market– you need a solid trading strategy. It’s crucial to conduct thorough research, analyze market trends and stay informed about global economic development. Here are some key points to consider:
Day Trading
Day trading involves buying and selling stocks within the same trading day. Traders aim to capitalize on short-term price movement to make quick profits. This strategy requires high level of skill and discipline.
Technical Analysis
Technical analysis involves studying historical price charts and using various indicators to predict future price movements. By analyzing charts and patterns- traders can make informed decisions on when to buy or sell stocks.
Fundamental Analysis
Fundamental analysis focus on evaluating a company’s financial health, management team, industry trends and overall market conditions. According to analysis of company’s fundamentals- traders can identify undervalued stocks with the potential for significant growth.
Risk Management
Trading in the share market involves inherent risks and it’s essential to manage these risk effectively. Here are some risk management strategies to consider:
- Set Stop-Loss Orders: A stop-loss order allows you to automatically sell stock, if its price fall below a specified level, limiting your loss.
- Diversify Your Portfolio: By spreading your investments across different stocks and sectors, you can reduce the impact of a single stock’s poor performance.
- Use Proper Position Sizing: Avoid risking too much of your capital on a single trade. Determine the appropriate position size based on your risk tolerance and trading strategy.
Continuous Learning and Improvement
Successful trading in the share market requires continuous learning and adaptation. Stay updated with market news, economic indicators and industry trends. Join trading forums, read books and attend seminar to enhance your knowledge and skills.
Conclusion
Earning 1 lakh per day from the share market is a challenging but achievable goal with right knowledge and strategy. By understanding market dynamics, developing a solid trading plan, managing risk effectively and continually improving your skills- you can increase your chances of making profits.
Remember- patience, discipline and perseverance are key traits of successful traders. Start small, learn from your mistakes and gradually scale up your trading activities.
