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What is Trading?

When you buy and sell any stock or stock repeatedly for a short period of time, it is called trading. Stock traders sell the stock for a profit in a short period of time and buy it when the price of the stock or shares goes down. Some stock traders are day traders, which means they buy and sell multiple times throughout the day.

Now you must have understood that buying and selling shares throughout the day is called trading, so let us now know in which way you can earn unlimited money from trading.

How to Make Money from Trading!

If you want to earn money every day, then you must indulge in trading. And In trading, you buy and sell stocks within a day. Stocks are not bought as an investment, but as a way to make a profit using the fluctuations in stock prices.

If you are wondering, how to make money per day trading in the stock market, then below are some strategies that can make it easier for you to make money from stocks, if you follow them closely.

1. Trade in high-volume stocks.

This is the first rule in trading – always keep an eye on such stocks with high volume or in which many people are trading. The term ‘volume’ refers to the number of shares that move from one hand to another in a day.

Always take the time to be sure about the stocks in which you are planning to invest. The analysis and opinion of others should be taken into account only when you make your own analysis. If you feel confident about certain stocks or indices, then only you should invest in them. List 8 to 10 stocks you want to target and start your research on these. Before investing, pay close attention to how the prices of these stocks are fluctuating, and also, consider security measures and use trade surveillance, to avoid trading fraud issues. 

2. Leave your greed and your fear behind.

In the stock market, there are two major sins that you should try to avoid at all costs. Factors such as greed and fear influence the decisions traders often make. If you can keep these psychological factors under control while taking trading decisions then you can make good money in the trading and share market.

It is important to keep a close watch on certain stocks and focus only on those stocks. No trader can make a profit every day, if you think that we can earn profit every day, then you will disappoint yourself again and again. When the wind is against you, you will have no choice but to book the loss. That’s why as a trader, you should always keep an eye on the limits, and try to stay within them.

3. Keep your entry and exit points fixed.

Now that we have talked about the two rules that you should never let affect your decisions, let us talk about the two factors that will increase your chances of making good profits. When you ask “How to earn 1000 rupees per day from the stock market?” So the answer is that you should have a definite entry and exit point in trading. These are the two main pillars of the stock market. As a trader, you need to identify these points correctly. Only after doing this, you can think about making a profit.

Before you place a buy order, always determine the entry point and price target of the stock. A price target is a price at which it is properly valued, taking into account its history and projected earnings. If the stock is trading below its target price then it is a good time to invest in it, because when the stock once again reaches its target price or exceeds it then you will make a profit.

Having a fixed point for your entry and exit will also ensure that you do not sell the shares as soon as you see a slight increase in prices. Because of this tendency, you may lose your chance of making big profits if the stock price rises further. Having fixed entry and exit points will also loosen the grip of fear and greed, as it will remove some of the uncertainty from the process.

4. Use stop-loss order.

One of the most important aspects of trading is stop-loss. A stop-loss is an order that is designed to limit the loss that an investor can incur. By using stop-loss you can minimize your losses, therefore, you should use this strategy frequently. Intraday traders should take the stop loss pledge to avoid huge losses.

The stop loss you set should be proportional to your target. To start with, you should set the stop-loss at 1%. Let us understand this with an example, suppose you buy shares of a company for Rs 1200 and keep the stop-loss at 1%, which is Rs 12. So, you close the position as soon as the price drops to Rs 1,188, which prevents further losses. This can help keep your losses under control, making it easier to achieve your financial goals.

How does stop loss work? The stop loss is set in such a way that if the prices fall below a certain threshold, the trigger is fired and the stocks are automatically sold. If prices suddenly start to drop, this is an extremely profitable method if you want to keep your potential losses under control.

5. Follow the trends.

When you are participating in intraday trading, following the trend is your safest bet to ensure profits. What is the probability that a trend reversal will happen within a day? Making trading decisions based on a potential reversal of the trend may benefit from time to time, but in most cases, it will not.

If you are thinking of earning daily from the stock market, then you can try to follow these guidelines-

1. Select a few stocks you want to target.
2. Before taking any action, closely track the movements of these stocks for at least 15 days.
3. In this period, analyze the stock in various ways based on volume, indicators and oscillators. Some of the commonly used indicators are supertrend or moving averages. You can take the help of oscillators like Stochastics, Moving Average Convergence Divergence or MACD and Relative Strength Index.
4. If you follow your target stocks regularly during market hours you will achieve a high level of accuracy in just a few days. You will be in a better position to interpret the price movements.
5. Based on the indicators you use and your analysis, you can fine-tune your entry and exit points.
6. You should also decide your stop loss and your target before investing.
7. Returns from stocks can be profitable, but it can be satisfying to make a steady profit every day by following the tips mentioned above. Intraday trading gives you more leverage, which gives you good returns in a day.

And now if you want to know more about trading, then you can watch this video. And can get complete information on this topic.