Generating 1000 times returns in the stock market is highly unlikely but not impossible. However, through aggressive trading, scalping techniques, trading in penny stocks, strategies for trading, technical analysis and trading with the market trend, you could get the relevant returns you’re looking for, provided everything favors your decision-making in the desired investment opportunities.
There is no certainty over this as you never know how much you might earn. You might lose or your investment or even double it. It’s all calculated risks and analyses that would provoke help in making money in the stock market.However, for your question, there are several possibilities where you can make a considerable amount of profits. But then there are some pointers to keep in mind before you take these trades. These parameters are given as follows.
• The entry point in trades.
• The strategy being used.
• Technical analysis.
• Market trend.
With the above-given pointers, you can invest you’re 5000 rupees and see it grow 5% or even 10%, who knows. It’s all on the pointers stated above, on which it would all grow exponentially. Now let’s talk about something realistically. You have a capital of 5000 rupees. So it’s impossible to make 50,000 rupees in a single trade unless and until the company you’re trading with reports huge profits to see 1000 times its growth potential.
But the only way you might be able to make that much profit is through scalping. Scalpers use a sniper strategy to enter a trade (whether its buy or sell) and exit the trade within 1-3 minutes max. its where they tend to trade on the profits reaped and execute such trades multiple times.
Another way of growing your money exponentially in the stock market is by investing in penny stocks. These stocks have a lower price cap, and there is growth potential. But then they are highly volatile as well. Within seconds, they change their prices vastly by more than 2-5%. So tread carefully with penny stocks.
If you know the ins and outs of trading in penny stocks, then you could grow your 5000 rupees capital investment to more than 50,000 rupees in profit. However, it’s all going to be indifferent trades and not a single one.
If you’re looking to make 50000 rupees profit with a 5000 rupees investment, then the only options you have left are intraday trading, scalping and trading in penny stocks. Don’t expect a single trad to fetch you exponential returns. However, you will have to trade in multiple assets and use several strategies to grow your portfolio to see that much income. Furthermore, while trading, you will incur losses, and it’s a better deed that you have the necessary stop loss to prevent excessive damage.
Making money off the stock market is no easy feat. It would help if you had a calculated investment while reading the stock market and ensuring that you have all the metrics checked out for making a sensible investment.
Options trading offers many options to traders, investors as well as hedgers. There are some common mistakes that option traders commit. Five of the most common mistakes are, taking too much leverage, not having a pre-defined stop loss and target, acting on tips on social media, adhering to buying options, and taking unhedged trades.
Intraday is feasible if you have enough capital and are aware of the stock's performance, while F&O helps in the prediction of the price whether it would rise or fall to book profits.
Making profits off the stock market is easier said than done. However, if you want to make 50,000 rupees as profits, you would have to consider intraday and F&O options in trading. But then factors such as stock selection, investment amount do play a significant role in the profits your reap.
Intraday trading on Zerodha can be executed with ease by choosing the type of trades you want to engage in. These could be NIFTY, BANK NIFTY, or future options of companies. Once you choose the respective lot, then choose the type of orders and then buy the shares. Trade them when you see a profit or wait till a specific point till you recover your investment.
Trading can be done employing many techniques. Some of them are Intraday trading, swing trading, scalping, and positional trading. Intraday and scalping comprise two forms of trading where the positions are squared off on a particular day. Whereas in positional and swing trading, the positions are held on for weeks or months.
Intraday trading is more risky and challenging when compared to long-term investing. Is it not a preferred option for beginners as it requires considerable capital, expertise, adequate knowledge about trading, and multiple other factors. For beginners, the best way is to deploy the majority of your capital towards long-term investments and use the remaining for hedging or short-term trading.
Paytm has added its name to the stockbroking industry all through its new platforms “Paytm Money.” The platform was rolled out to customers earlier in September 2020 and had since then exploded amongst traders/investors to see the offerings set up by the company.
Profits generated from intraday or positional trades are settled on a T+1 settlement cycle. This means you can only take additional positions from your profits on the following trading day.
Options trading involves two aspects. One is options buying and the other is options selling. To buy an ATM option you will require around Rs 10,000 to Rs 25,000 per lot for an Index or stock option. On the other hand, you will require close to Rs 95,000 to Rs 1,50,000 for selling 1 lot of index option. These amounts change with respect to the time remaining to expiry and other market conditions.