You are currently viewing How To Earn 1 Lakh Per Day From The Share Market?

How To Earn 1 Lakh Per Day From The Share Market?

Do you also dream of earning big? Have you ever heard of investing in the share market? Do you want to know the secret to earn 1 lakh per day? If yes, viola! This blog is for you, we will explore some ways to earn lakhs of money from the share market.

But, one thing you should know– simple advice is not going to work until you actually focus on creating your own trading strategy. Of course, you must have heard some intraday traders earn more than a lakh in a single day from the share market. But how do they do this?

So, let us turn the tables with this article, where you will not go without crafting a brilliant strategy to earn big.

Can You Earn 1 Lakh Per Day From The Share Market?

The straight answer to it is YES! You can, but let’s be clear from the start– it is not that easy and requires lots of hard work, consistency, determination, quick thinking, and, of course, a brilliant plan. 

Given that, here are some cross-checked statements on “Earn 1 lakh per day from the share market” over the Internet. 

Dhan Blog has stated that professional and skilled traders can earn 1 lakh per day and more from the share market through different types of trading like options and futures. 

Similarly, many people on Quora have also said that traders may earn 1 lakh per day and more from the share market, but it is a very ambitious goal. Proper planning, preparation, knowledge, experience, and consistency are required!  

How to earn 1 lakh per day from the stock market?

Moving forward, let us see how to earn 1 lakh per day from the share market!

Though there are many ways to achieve your target, in this blog post, we will cover the top ones. 

Given that, here are the top three ways to earn 1 lakh per day from the share market:-

  • Delivery Trading
  • Intraday Trading
  • Derivatives Trading

Now, let us discuss each one of them one by one:-

Delivery Trading

Though there are many ways to earn money from the share market, Delivery Trading is one of the best ways to earn 1 lakh per day. It is simple, and even beginners can get started with it.

Given that, here is how Delivery trading works:-

In delivery trading, you can purchase shares at a specific price. After this, if the price goes up, you can sell them and make a profit out of this. 

Understand this with an example: let’s say you buy a share of Rs. 1000. After some days, the price rises to ₹1500. If you sell that share at this point in time, you will earn a profit of Rs. 500 per share– a great way to earn, right?

However, in delivery trading, the full amount for the share must be paid by T+1 (the next trading day). Subsequently, the profit amount for the share will be delivered to your Demat account by the end of T+2 Day. 

Delivery trading is a fantastic method that lets you grow your investment over time. But here is the catch, delivery trading is a long process and requires lots of patience. You’ll have to wait for the share price to rise before selling, so it might not be the fastest way to earn 1 lakh per day. 

Intraday Trading

The next option to earn 1 lakh per day is Intraday trading. It is a type of stock trading that requires traders to hold positions for a short time and then sell those positions for a profitable amount.  

Let us learn about this also with the help of an example:-

Suppose you purchase a share at 07:30 AM for Rs. 5000, and after some time, the share price goes to Rs. 10,000. At this time, you can immediately sell the share and earn a double profit, that is, Rs. 5000, on the same day.

Perhaps, Intraday Trading is the best way through which you can easily earn 1 lakh per day from the share market. 

However, there is a catch associated with it! You must have very high trading skills to master the intraday game. It includes having proven knowledge of the technical sides, predicting correct market moves, and making smart choices by analyzing the existing data. 

Given that, let us learn what Intraday Trading is and explore some methods to master its skills.

What is Intraday Trading? 

Intraday Trading is a simple way to buy and sell company shares on the same day (as discussed above). However, it eliminates the need to wait for T+1 day–associated with Delivery Trading. Furthermore, you will not need a Demat account to own a share. You can do it from just a trading account.

Pro Tip: When you buy or sell shares, choose the intraday or MIS option. Otherwise, your order will automatically turn to delivery trade. 

Steps to Start Intraday Trading

Here are some steps you can follow to master Intraday trading:-

  1. Learn the Basics

The first step is to learn the basics of Intraday Trading. You can understand its key concepts like Emotion control, Liquidity, Day trading, Risks, Gap and Go strategy, and more. 

  1. Read Helpful Books for Trading

Consider the following books to help you gain a better understanding of Intraday Trading:-

  • How to Make Money Trading with Candlestick Charts

 ~by Balkrishna M. Sadekar

  • How to Make Money in Intraday Trading 

 ~by Ashwani Gujral and Rachana A. Vaidya

  • How to Day Trade for a Living 

 ~by Andrew Aziz

  • The Subtle Art of Intraday Trading

 ~by Indrazith Shantharaj

  • Trading In The Zone

 ~by Mark Douglas

  1. Learn Technical Analysis

Understand stock patterns and trends and gain a proper knowledge of stock charts for technical analysis. Furthermore, you should explore various indicators, chart designs, and candlestick formations to help you make better decisions based on price action.

  1. Practice with Virtual Accounts

The more you practice, the better you will get at Intraday Trading. It will bring you one step closer to earn 1 lakh per day. Try out your strategies using various virtual trading accounts and start intraday trading without real money.

  1. Start Small

It is the basic, start by investing small, like Rs. 1000 or Rs. 2000 per day. This will reduce the risk factors and help you earn while learning.

Steps to Master Intraday Trading

Let us now see some steps to master Intraday Trading:-

  1. Developing a Trading Plan

Developing a strategic trading plan is essential for consistent profit. Some components of a trading plan generally include:- 

developing a trading plan
Trading Plan
  • Goal setting
  • Risk tolerance
  • Position sizing
  • Trade management rules
  1. Choosing the Right Stocks

After developing a plan, you should choose the right stocks for successful intraday trading. You should develop and follow proper strategies for identifying stocks. Consider factors like:-

  • Liquidity
  • Volatility
  • Intraday trends
  • Fundamental analysis techniques 
  1. Risk Management Strategies

Developing and following effective risk management techniques is crucial in Intraday Trading. It is important to reduce loss and save your capital. You should know:-

  • Risk-reward ratios
  • Position sizing techniques
  • Stop loss placement strategies 
  1. Identifying Entry and Exit Points

Timing plays a vital role in Intraday Trading. Given that, you should know the following to identify entry and exit points:-

  • Use technical analysis tools
  • Understand support and resistance levels
  • Learn reading trend lines
  • Know Moving averages

Derivatives Trading

Another method to earn 1 lakh per day is through derivatives trading. You can start with it even with a small investment and make a profit by buying stocks at a lower price. 

Let us see what derivatives trading is and how to do it:-

What is derivatives trading?

In simple words, Derivatives trading is when traders buy or sell derivatives contracts to guess the future price of any stock. Derivatives are agreements that derive their value from an underlying market. 

Generally, there are two options in Derivative trading– Futures and Options (F&O). Here is an example to help you understand better:-

Suppose the price of Tata Motors’ share price is Rs. 1000, but you can get it for just Rs. 300 through the futures and options features. However, you should understand that your profit is not Rs. 100. Rather, it is based on the original price of Rs. 700. 

Traders and Speculators do this because it enables them to trade on the moving price of an underlying market without purchasing the asset itself. It is a good trading method to earn 1 lakh per day.

Advantages of Derivatives Trading

advantages of derivatives trading
Advantages of Derivatives Trading

Here are some advantages of Derivatives Trading:-

1. Little Investment

To get started with Derivatives Trading, you need not have a huge investment upfront. A small portion called margins is enough to do the job.

2. More Opportunities

With Derivatives Trading, you can explore more options and trade more than average.

3. High Liquidity

Due to high liquidity, derivatives are easy to sell and buy in the market.

How to get started?

To get started with derivatives trading, you need:-

  • A demat account
  • A trading account connected to your demat account
  • Minimum cash in the linked bank account to buy the derivatives

What you should know?

  • You should develop a trading plan and strategy involving your goals, risk tolerance, and derivatives of your choice.
  • Follow new market trends, economic indicators, and news events that can influence the market.
  • Gain experience, either by working as an assistant trader or interning before going full-time.

Some derivative trading strategies

  • Long trades

It is a common form of trading futures, where you know that the underlying asset price will grow before the contract expiration date.

  • CFD trading

Here, traders can trade price movements without owning the underlying asset.

Takeaway

If you wish to earn 1 lakh per day, then trading options such as Delivery Trading, Intraday Trading, and Derivatives Trading are the best options. Big businessmen, traders, merchants, and share market investors mainly focus on these trading options to make lakhs of money.

In this blog post, we have provided a guide to get you started with them. However, you should also build your own strategy and plans to reach your goals. And remember, with practice, you can master!

You Can Also Read: Best Trader For Forex Trading

David Gillmore

Bookmyblogs is a go-to website for insights on everything. Our expert team keeps you ahead of every story with in-depth blogs and articles. From trending stories to technical tips, we have something interesting on everything. Whether you are an automobile or tech freak or you are a foodie, we have got it all covered! You search it and we answer it.

Leave a Reply