Welcome to Indian Share Market
Learn How to earn Rs 1000, 2000 to Rs 5000 in share market on daily basis. Monthly profit calculation.
Most of the people come to share market to earn money on daily basis but they fail to do so and there are two primary reasons and those are lack of 1) knowledge and 2) experience. Share market movement on daily basis is governed by lot of domestic and international factors and that is beyond anybody’s control so it is difficult to gauge the market movement on daily basis, so wise and experienced trader try to earn money on monthly basis and not on daily basis. It is for sure that every day is not trading day and it is highly possible that losses may occur if trader try to do every day trading and earn money in share market. At all if you want to try then try doing paper trading practice and if you get success then you can move to actual trading with money. For more stepwise information about paper trading practice please visit this page
So now we will see How to earn on Monthly Basis in trading in share market? We advice following 3 strategies to make profitable monthly earning in share market 1) Take small profits and do multiple trades and earn thousands at the end of the month in share market 2) Cut down losses in day trading because Money saved is money earned. 3) How to pick stocks (Tips) for buying and selling on daily basis 1)Take small profits and do multiple trades The successful strategy for day trading is to “take small profits and do multiple trades”. Basically it has been observed that many times traders lose money due lack of knowledge. For example - Suppose if day trader’s buying price of a share is at Rs.200 then he will wait for the price to go till Rs.204 or Rs.205 and then he will plan to book profit, which is highly impossible on very frequent basis in single trade. We feel this doesn’t sound practical and this is the reason why traders lose money after waiting for long time. Your intention is to earn money in a day, so just concentrate on small profits and do multiple trades instead of waiting to get huge profit in just single trade. Markets are always right so to avoid the further risk it is always recommended that day traders should keep booking profit wherever applicable.
Take small profits and do multiple trades - This strategy will assure you get profits, and all the profits that you do throughout the day will add up to good amount and this is what you want, right? Please note - Earning Rs 5000 per day requires lakhs of investment in addition to huge experience. So first gain experience by trading with small amount and then you can move on to earning Rs 5000 daily profit. Rather we suggest start earning small amount and slowly move to higher profits. Important advice - Instead of looking for daily profits look for monthly profits, So this will not force you to make daily unwanted trades and it will save you from losses. So please have a look on following example about taking small profits and doing multiple trades and how it will provide you a good amount at the end of the month. Let’s first understand the brokerage and taxes applicable for day trading The current intraday brokerage offered by us Rs 20 for buying and Rs 20 for selling. If you are interested to open the demat and trading account then please visit at Demat account opening page
- Brokerage - Rs 20 for buying and Rs 20 for selling - The service tax is of 15% only on brokerage amount. - The STT (Security Transaction Tax) is of 0.025% only selling amount. - The stamp duty on total turnover for a day which is 0.002%. - and finally SEBI Turnover tax - 0.0002% on turnover For latest rates please visit at Brokerage and taxes page. Don’t worry all these taxes will add up to very small amount at the end of the day compared to your profits in thousands. Now let’s see how to take small profit which will add up to big amount at the end of the month by doing multiple trades. Example - Please note following example is demonstrated to give you idea how to do multiple trades and earn profit in a day and end up your month in profits.
Buy Tata steel at Rs.315, quantity - 400 i.e. Rs.315 x 400 = Rs.126000. So if you have Rs.30,000 in your trading account you can do day trading using margin amount from broker. Margin amount is the amount given by your broker for day trading. This amount varies from broker to broker but it is generally 4 to 5 times and it is also based on stock you choose for trading. So you bought Tata steel at Rs.315, Qty - 400 i.e. Rs.315x400 = 126000 and sold it at Rs.316.5 You took only Rs.1.5 as profit for Rs.315 share price and you sold 400 shares so your Gross profit is Rs.600. Brokerage and taxes calculation Now let’s calculate how much you have to pay as brokerage and taxes and finally how much you will get as your net profit behind this single trade. Your buying amount is = Rs. 126000 (Rs.315x400 Qty shares) = Rs 20 for buying as brokerage = You have to pay service tax of 15% only on brokerage. = so 15% on Rs.20 comes to Rs 3 The total brokerage + service tax on buying is Rs.20 + Rs.3 = Rs.23 Now let’s calculate the brokerage and taxes on selling amount = you sold Tata steel shares at Rs.316.5, Qty - 400 so the amount comes to Rs.126600 = Rs 20 for Selling as brokerage = You have to pay service tax of 15% only on brokerage. = so 15% on Rs.20 comes to Rs 3 = Rs.54.65 = You have to pay STT (Service Transaction Tax) of 0.025% on selling amount which comes to Rs.31.65 So total brokerage + taxes you have to pay for selling is Rs.20 + Rs.3 + Rs.31.65 Total amount you have to pay on buying and selling is = Rs.23 (buying) + Rs.54.65 (selling) = Rs.77.65 You also have to pay stamp duty and regulatory charges on total turnover. Your total turnover is calculated by adding the buying amount and selling amount. Buying amount is 126000 and selling amount is 126600 which adds up to Rs. 252600 Stamp duty - 0.002% and SEBI turnover tax - 0.0002% adds up to 0.0022% On total turnover amount (Rs. 252600) the taxes comes to Rs 5.55 So the total amount you have to pay including brokerage and taxes is only Rs.77.65+ 5.55 = 83.2 So now the conclusion is you are paying Rs. 83.2 as brokerage and taxes, while you have earned Gross profit of Rs.600. So you net profit comes to Rs 600- Rs 83.2= Rs 516.80 If you continue doing such small trades with such small profits then it will end up with big amount at the end of the day. Suppose if you do 4 trades in a day then your net profit will be Rs 516.8 x 4 = Rs 2067. Monthly profits - Your daily profits have come to Rs 2067. In a month there are 22 trading days. So your profits becomes Rs 2067 x 22 = Rs 45478. We also believe that it is not possible to earn profit on daily basis and also some losses would happen due to market fluctuations and also every day it is not possible to trade. So we will take only 50% profit from above amount so from Rs 45478, it comes to Rs 22739. So believe in small and end up the day and your month with big profits. How to increase profits? In above example we have bought only 400 shares so if you increase the number of shares then your profit will increase accordingly. Try to take small profits because there are lots of small price fluctuations rather looking for one big price movement. In day trading - you can buy and sell and also you can short sell and then buy. If you are expecting the share price to go down then you can first sell and then buy.
2)Cut down losses in day trading because Money saved is money earned. Three Important points to remember before starting day trading 1) To avoid losses and to gain confidence start by paper trading practice and generate profits and then plan to switch to real day trading. 2) Doing over trading is risky and you may end up in losses. Using margin amount is also risky because you have to square your trade before market closes irrespective of whether you are in profit or loss. So if you use only your amount then there is no risk. For example if share price goes down then you can take delivery of these shares and sell tomorrow if price goes up. 3. Stay away from greed like making huge profit in a single day. This is only possible for experience traders and only after spending years and years in the share market. 1. How losses occur in day trading Markets are always right, no one can complain about it. It can move in any direction during the market hours so it is difficult to catch hold of market all time so it is quite possible for a trader to make losses. You buy certain share and had put the selling order but at the same time if the market starts moving in downtrend direction then you have to book loss and at the same time the reverse may also happen like if you did short selling and had put the buy order at lower price and suddenly markets starts moving in upper direction. So in such situation you have to come out of the trade by accepting loss. So to prevent heavy losses, stop loss trigger price has to be implemented. Losses can even occur due to your own mistakes like, i. Not able to understand specific share movements. ii. Not in a proper mindset to do trading. iii. Sometimes markets moves up down in very narrow range then it becomes difficult to trade and book profit and at the same time it is also possible that you may lose your patience and start doing wrong trades. So in such scenario you have to stop trading immediately for that day and relax or else take holiday for that day. Finally to have to accept loss for the day (if you are not getting the market and stock directions) and close the trading for that day, don’t ever try to do it forcefully and recover your losses because this may end up with more losses.
You may also come across situations like you did the trade and had put the square off order but your share price is not moving at all for long time say for last 30 minutes and so, so in such scenarios it is advisable to accept the minimum loss or minimum profit like if you are targeting Rs.1 profit then you can accept 50 paisa or so and come out of the trade and look for other trades. Above all scenarios may or may not come to you but this is just precaution. 3) How to pick stocks (Tips) for buying and selling shares on daily basis Very important - Rather looking for any paid tips or any technical analysis, look for only news. If you keep close watch on news then you can easily make money in share market. News affects the share price either in positive way or negative way. So trade only on news based shares and make profit. 1. When you buy at the same time (immediately) place the sell order or when you short sell then place your buy order immediately. Don’t wait for price to move up or down to that level because you never know how share spikes. 2. For day trading choose shares of higher price like of Rs.300,350,400,450 and so on because we need very small profit behind each share and this small price fluctuation happens in high price shares at much faster rate.(this is our experience, you can do your own based on paper trading practice.) For example - The movement of Rs.1.5 is very easily possible in shares of Rs.300 or 400, so even till Rs.500 you can take shares for profit of Rs.1.5 per share. (Do your own calculation based on your brokerage rates and see which share price is suitable for your trade). If you need guidance in calculating the brokerage and taxes, then please write us. 3. Take as small as profit as possible because this assures your profit at very higher rate instead of waiting for huge profit where there are very less chance of success. 4. If you do proper and extensive paper trading practice and follow wait and watch then you will make out yourself how much there is need of using stop loss trigger price. 5. No need to calculate brokerage rates and taxes for each trade. You would prepare your format like for shares of Rs.300 to Rs.500 and for fixed quantity how much profit you have to take behind each share; you do this calculation and keep it with you all the time and follow that while trading. Same thing you can do for shares of Rs.600 to Rs.800 likewise. The bottom line is taking minimum profit and doing multiple trades.