How to Earn From Stock Market? Basic to Advance Knowledge

How To Earn from Stock Market?

How to Earn from Stock Market?

How to Work in Stock Market?

There are only two ways in the stock market through which we can earn.

1. Trading in Stock Market

Types of Trading in Stock Market

2. Investment in Stock Market

Investing in Stock Market

First of all, you should try to understand what your mindset is. You can devote your full time to the market or not. Trading is a full-time job. You will have to keep an eye on the regular screen from 9.am to 3.30 pm.

Read This More:  How Can I Use AI to Back test my Trading Strategy?

The movement of stocks or index has to be seen. If you want to go into trading, you will have to maintain discipline. The attraction of the general public towards the stock market is due to the fact that it makes quick money. Trading also has 2 parts:

1. Intraday trading

Intraday trading in Stock Market

Read This Book: Trading in the Zone

 

2. Positional trading

Positional trading in Stock Market

Intraday trading

• Intraday trading is like 20-20 match, buy today and sell today. Daily profit is very low. If you make 1%, 2%, 3% profit today, book that profit according to your capital or square off the position.

Read This Also: Top 5 Technical Indicator Used in Trading

• Intraday trading is an art and skill which comes with time and experience. If you want to become an intraday trader, then always start with your own capital. Start with paper trading.

Positional Trading

• In positional trading you can hold your position either for 2-6 days or for 15-30 days. You have to be patient in positional trading. If you have bought a stock, then it may go bad in 1 day or it may go bad in 2 days or 7 days. Basically, positional trading is for those people who cannot spend their full time in the market. Be it business class or job field.

Positional Trading in Stock Market 

Read This Also: Top 5 Strategies for Positional Trading with Example

• In positional trading, as the risk increases, the profit also increases. In intraday trading you have to look at technical charts whereas in positional trading you have to do fundamental analysis.

• First know your nature and what kind of trading you should do and only then invest your capital. Positional trading should also be started with paper trading. An important point of both these tools in trading is stop loss.

• I am also creating a blog on the solution of stop loss so that you can know that without stop loss trading is not possible. Stop loss is a lifeline to protect your capital from the volatility of the stock market.

What is Stop Loss in Stock Market?

Now let's talk about investing:

• The time period in investing is quite long. The more time you spend on your investment, the more it will grow.

• Just like to plant a tree, you have to first put food in the seeds and then just give water, your seedling will start taking the form of a tree. Similarly, your investment also requires some care and analysis while starting, but if you give it time from 1 to 10 years. You can't even imagine how much your investment value will lose in a year.

Investment in Stock Market

• If I say that you want to take a little bucket of water out of the ocean, then do intraday trading and if you want to have the entire ocean in your name then investing.

• Everyone thinks that first do some trading and then you will get money and then start investing but this is not so easy. It takes time to do things, but these are also skills which come with time. So, decide whether to trade or invest.

• The benefit of investment is also that you get dividends over time, you also get bonus shares, stock splits also have their own benefits. Therefore, the opportunity to earn money is there but you have to understand it or apply later.

Read This Also: The Dos and Don'ts of Stock Market Investing

Friends, I write blogs on every aspect of the stock market. People who are new to the stock market can easily get knowledge about the stock market by reading all these blogs. Working in the stock market is my passion, the experience I gain while working in the stock market is the same experience, I share with you here. 

If you want a blog on any topic of stock market, then you can tell me in the comment box. I will write a blog on the same topic.

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