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.
With the right investments, making more than 50,000 rupees is quite possible. The stock market is unpredictable, and you never really know when things might change and go sideways altogether. However, for many 50,000 rupees purely in profits, then you would need considerable investments as well. At least 10-15 lakh rupees should do the trick, provided you know what you’re doing in the market. Some people might say that stock trading constantly at a good trading session can fetch you the required profits with a smaller capital.
Having one lakh rupees and making half of it in profits requires good hindsight of the market and good investments. However, if you’re looking to make that much in profits, then we have some pointers below that could give you some amount.
1. Selection of stock - choosing the right stock to invest in is the most important aspect. You need to figure out which stocks might give you profit and which might be at a loss by undertaking a technical analysis of the company.
2. The trend in the market – never trade against the trend. If the market is bullish, then buy and sell extensively to keep reaping higher profits. If the market is bearish, you could either not trade or buy the stocks you feel might increase over time.
3. Risk management – stop loss is a must as you need to understand the total money you’re willing to lose before you can hit a profit margin. It’s a risky business, but then the profits are equally higher as well.
4. Avoid averaging – whenever you might find that your stock might go under, it’s better to wait or skip that position. Never average it out as it, in turn, increases the risk and loses that investment.
5. Popularity in stocks – We all know that stocks are quite manipulative, and any negative feedback could affect its valuation. Therefore, it’s a better practice to stay away from stocks and companies that are constantly under the news for any reason, for that matter.
6. Trade normally – never overtrade or execute multiple trades at one go. You never know when you might make a mistake and cost you dearly.
7. Mentality – mental focus and phycological strength is a must. Keep your emotion in check as the market would never understand it; instead, you need to follow the market and, based on patterns and other critical points, invest.
Making profits from the stock market is simple. But then how much profit is the key differentiating factor. You never really know where you might gain profits or how the market might react to anything. Therefore, always study the market exclusively and understand where it might be going and then start trading. But a thumb rule to consider is that you trade at your own pace and never come under the influence of others to take loans and then trade. It would eventually lead to losses and huge financial troubles.