How Much Money Can You Make in Trading Stocks?

12 August 2024
5 min read
How Much Money Can You Make in Trading Stocks?
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Trading in the Stock Market means buying and selling shares on the same day. Intraday traders take the help of technical indicators, monitor charts, and implement momentum strategies to make the most of trading.

Traders square off their positions at the end of the trading day. It requires monitoring the stock markets closely and regularly than if you were investing for the longer term.

Continue reading to discover how much money you can make by Trading Stocks.

How Much Money Can You Earn by Trading?

There is often a question asked by many people, how much one can earn in stock market in India or how much money can you make from stocks in a month? Well, there is no limit to how much you can make from stocks in a month.

The money you can make by trading can run into thousands, lakhs, or even higher. A few key things that intraday profits depend on:

  •   How much capital are you putting in the markets daily?
  •   How much risk can you take in your bets?
  •   Trading expertise and knowledge of technical indicators.
  •   Patience.

You may be able to double your money with a single trade or even halve it, depending on your ability to judge intraday metrics.

You may be wondering, “How Much You Can Earn from The Stock Market?”. Well, the earnings can go up to Rs. 1 lakh a month or even higher if you are skilled enough and your strategies are in place.

Does this mean all intraday traders are in profit, or is intraday trading profitable? Not at all. In fact, some studies suggest that 95% of Indian traders lose money in the markets. That is a pretty big chunk of traders.

Hence, to at least break even, let alone book profits, one needs to be thoroughly briefed about intraday trading and the various strategies involved.

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Points to Note While Trading

  • Stop-Loss

Stop-Loss is a trading process that allows you to cut your losses while Trading in the Stock Market. When you put a stop loss criterion at a certain price of your stock, it is automatically sold when the price falls below the stop-loss price level.

For example, if you bought shares of a company X at Rs 300 per share and you put a stop-loss order at Rs 260. So, if the price falls to Rs 260, your shares will be sold automatically, thereby reducing your loss to just Rs 40 per share. 

▶️ Read more on Groww: Introduction to Intraday Trading Strategies

  • Through Background Research

Intraday trading requires a lot of homework. Making quick bucks, which intraday trading essentially offers, has to be backed by thorough research of the company.

Traders have to be skilled in charts, oscillators, trading metrics, ratios, monitoring volume, and many other indicators that require training. Stock market returns are volatile, more so when you are buying and selling on the same day. Hence, proper research and upgrading your skills are essential.

  • Regularly Monitor Your Investments

One of the most important qualities to be successful in the Stock Market is to monitor your investments or portfolio on a regular basis.

Monitoring your portfolio on a regular basis helps you to sell your stocks immediately if you think the prices are likely to correct in the future. This is required even more in intraday trading. This is because your daily activity can decide your position (profit/loss) in the market and financial condition.

You can also earn a huge number of profits from stock trading or by selling your stocks at the time when they are at their peak price, but you need to go back and monitor your portfolio on a real-time basis to know when is the right time to do the same.

  • Requires Patience

If you want to make money from high-return stocks, then the very basic requirement is patience. Any decisions taken on a whim can make you lose a lot, especially when traders deal with large sums of money.

  • Avoid Herd Mentality

One of the most gruesome mistakes one can commit in the stock market is to buy or sell just because everyone else is doing the same. As an investor/trader, you have to understand that your financial goals are not the same as another person. Day

Conclusion

In conclusion, if you buy or sell a stock, it should be based on your research. In other words, you may buy or sell a stock because the timing is right, the fundamentals of the company have changed, or there are certain regulatory changes that may impact your holding.

Above all, you should buy or sell stocks only if it is within your financial capacity.

Happy Investing!

You may also want to know

1.

How to Invest in Share Market

2.

How to Read Stock Charts

3.

How Does the Stock Market Work

4.

How to do Valuation Analysis of a Company

5.

How to Open a Demat Account Online

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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