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Have you ever wondered how to earn 5000 rupees per day from the stock market? If you have not achieved profits near 5000 rupees per day, you have come to the right place. Here, we would like to tell you the secret to earning more profits from the stock market. Before that, let us provide a brief introduction to the powerful method to earn from the stock market.
Making huge profits in the stock market in a single day is not impossible, but it can be challenging. Stock market earnings involve different methods. Traders employ different trading strategies to make informed decisions in the stock market. As we all know, the stock market is a place where stocks or shares are purchased to make a profit in the future.
What if I tell you that you can earn surplus profits in a single day with the intraday trading method? Intraday trading allows traders to generate money by purchasing and selling stocks or shares on the same day. Careful understanding and execution of intraday trades can enhance your trading experience.
Let’s dwell deep into the concepts of intraday trading and how exactly it is possible to make huge profits in a single day.
Intraday trading is an effective way to generate money in one day. It refers to the practice of purchasing a stock and selling it on the same day for a profitable price. It allows traders to take short selling positions, meaning a trader can sell a stock beforehand and purchase it later at a lower price. This allows traders to navigate trading opportunities in both rising and falling markets.
Intraday trading has another advantage of leverage, which allows traders to amplify their potential returns. High leverage also attracts high risks. As they say, leverage is a double-edged sword. Conducting appropriate research and using the right technical indicators can take advantage of the leverage and make informed decisions to get more returns.
Intraday trading can provide substantial rewards by appropriately executing the trades. Using leverage and infusing a large capital can easily generate 5000 per day from the stock market. At the same time, it also involves high risk. Trades with no proper analysis and research can lead to potential losses.
Learn the basics of intraday trading. Explore the principles and fundamentals of intra-day trading. Familiarise yourselves with the concepts of long position and short selling.
List down your primary goal as to make 5000 per day from trading. Evaluate your goals and develop an appropriate capital to achieve the goals.
Choose a reputed broker who is authorised by SEBI to avoid any complications. Ensure that the broker is reliable and charges average transaction costs.
Cultivate a developing strategy such as price action trading or by using technical indicators or a mix of both.
Conduct pre-market analysis and identify potential trading opportunities.
Identify high-volume stocks with potential price movements, then use charts and technical indicators to set trendlines, support, resistance levels, and exit/entry points.
Place your trades based on your trading plan. Set up stop loss and take profit to manage the potential risks.
Employ risk management decisions such as risk-reward ratio or limit position size to avoid the potential impact of losses.
Continuously monitor the performances of your trades and adapt your strategies to the latest market conditions.
Let’s break down how you might achieve 5000 rupees in a day with intraday trading:
Assume that you have ₹2,00,000 capital and your selected stock is Tata Motors.
Assume at 9:30 am, upon opening the market, you purchased 100 quantities for ₹1,000 each.
Used Margin = 100 * ₹1,000 = ₹1,00,000
Assume that at 10:00 am, the share price of Tata Motors rose to ₹1,010.
Sold 100 quantities of Tata Motors shares at ₹1,010 per share = ₹1,01,000
Current Profit = ₹1,000
Capital = 1,00,000 + 1,01,000 = ₹2,01,000
At 10:30 am, suppose Tata Motors share price fell back to ₹1,000.
Bought 100 quantities for ₹1,000 each.
Used Margin = 100 * ₹1,000 = ₹1,00,000
At 11:00 am, the share price rocketed to ₹1,020.
Sold 100 shares at ₹1,020 per share = ₹1,02,000
Current profit = ₹2,000
Capital = 1,01,000 +1,02,000 = 2,03000
At 2:00 pm, suppose Tata Motors share price fell back to ₹1,015.
Bought 100 quantities each at ₹1,015 per share
Used Margin = 100 * 1,015 = ₹1,01,500
At 3:00 pm, the share price rose to ₹1,035.
Sold 100 shares at ₹1,035 per share = 1,03,500
Current profit = ₹2,000
Capital = 1,01500 +1,03500 = 2,05,000
Total profit of the day = ₹5,000
In this example, you can easily understand how to generate 5000 rupees in a day in the stock market by taking long positions. Similarly, you can take several short-selling positions while intraday trading in a falling market to generate profits.
Profit is highly dependent on the margin used. The higher the margin, the greater the profits and the higher the risks.
The price variation of stock can vary from various factors, including economic conditions, geopolitical tensions, market sentiments, news updates, overbought and oversold situations, and many others. Being attentive to these aspects may help take advantage of the price fluctuations.
Because intraday trading can be extremely risky and challenging, when trading intraday, there are a few key points to keep in mind. Things to consider while doing intraday trading are given below:
High-liquidity stocks are stocks that have high demand in the market. This allows smooth transactions between buyers and sellers, enabling traders to purchase or sell the stocks anytime they want.
Understand the concepts and functions of technical indicators. Technical indicators like the relative strength index, MACD, moving averages, and others help to predict price fluctuations.
One of the key things to remember is always to take trades in favour of the trend. Trading against the trend can lead to significant losses.
Apply risk management decisions like risk-reward ratios, stop-loss, take-profits, and others. These risk management decisions can reduce the impact of potential losses.
Execute trades consistently every day. Fostering disciplined trading will help you to make more informed decisions.
This article on how to earn 5000 per day from the stock market is carefully developed after conducting relevant research and analysis. Intraday trading is indeed a powerful method to earn 5000 per day from the stock market. It involves purchasing and selling stocks or shares on the same day, allowing traders to make substantial profits. This method allows traders to navigate trading opportunities in both rising and falling markets, taking advantage of leverage and amplifying potential returns. However, high leverage also attracts high risks.
To earn 5000 per day from intraday trading, one must understand the basics of intraday trading, set goals, select a reputable broker, develop a trading strategy, analyse the market, set up trading tools, execute trades, manage risk, and monitor and analyse the performance of their trades.
When doing intraday trading, it is essential to choose high-liquidity stocks, learn key technical indicators, trade along the trend, employ risk management strategies, and execute trades consistently. Fostering disciplined trading will help you make more informed decisions and increase your chances of achieving 5000 rupees per day.
In summary, intraday trading is a quick and effective way to generate money in the stock market, but it also involves high risk and requires careful analysis and research.
Hashim Manikfan
Hashim Manikfan is a professional financial content writer with extensive experience in creating engaging and informative articles on a wide range of financial topics. With academic background in Communication and Journalism, Hashim has published numerous articles aimed at educating readers on essential financial principles. His work covers areas such as financial markets, investment strategies, economic trends, and more. His writing style ensures complex topics are accessible and interesting, making financial literacy attainable for a broad audience.
