Is it possible to make Rs.50,000 in profit with your investment?
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- Updated On:10-Aug-2021
- Replies:1
Short Answer
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.
Detailed Answer
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.
How to make money in Stocks? Key pointers to follow
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 in Stock Market
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.
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Discussion (0)
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.
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.
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.
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.
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.
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.
Its all based on the share you wish to purchase. You can invest one rupee or two rupees in the stock market while there is no maximum cap on your investment.
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.
Bull markets are identified when the stock sees a rally in its price, increasing, and there are lesser chances of it crashing. Conversely, a Bearish market is when the stock market plunges, and the stocks lose its value due to several reasons affecting its performance. Mostly the color green on a stock market chart is bullish, and the color red is bearish. However, these are prolonged over a couple of days to determine the nature of the market.
If you're looking for a straightforward and comprehensive take on options trading, then Sensibull should do the job perfectly. However, if you're and expert and want more complex trading tools, then Opstra is the one to choose.