Want to make some income by day trading in India? Here’s a guide on how much one can earn in day trading in India with some tips to get started.
Have you ever wondered how much do traders make per month?
With in-depth knowledge and the potential to craft the right trading strategy, traders with advanced technical knowledge can make up to 5-8% of their invested capital every month.
Functioning Of Intraday Trading
Post learning about the trading account and the functionality of an intraday trading account, you will surely know about what traders aspire to do. There are two ways how trading can benefit investors.
- Long-term appreciation
- Short-term appreciation
Intraday trading is the tool investors use to earn quick cash or returns.
In Long term trading, investors buy and hold stocks for a longer period, like for years and months, and then earn profit through them.
Or earning profit from the company’s earnings under which the stocks are held.
Day trading or intraday trading is aimed toward a short-term period.
Shares are sold and bought within 24 hours, and earnings are made based on the decisions related to them.
What Should You Know About Day Trading In India?
Wondering how to make money in Intraday trading? Here are some tips you must know before diving into the pool of trades!
#1. Cycle of Trade
In day trading or intraday trading, there is no holding of stocks or commodities or exchange of stocks or shares. All the buying and selling is wrapped up in a period of 24 hours.
#2. Trades of Big Size
Earnings in day trading are done on the same day, so the limited span must be kept in mind before choosing the stocks to buy or sell.
So big trades are the key to earning some good bucks.
Numerous trades are made in Day Trading; therefore, small regular profits can be easily made through these.
#3. Learn about Margin
With a clear understanding of margin, one can trade with big sums and safety. In some brokerages, margins can be up to 10-15%, so you must calculate your profit margins after considering it.
If you plan to place orders buying and selling huge orders, you might get a discount on the margin percentage.
#4. Plan your Strategy
Knowing the right stocks to buy and sell is the key to success. Without the right strategy in trading, you might fail to sustain a regular profit or earn a profit.
To begin intraday trading, you must learn about day trading well and research well about the dynamics.
#5. Delivery Trading
Delivery Trading is the term used to signify the Buying and holding of stocks in the Demat account before selling them to earn some profit.
But in the case of intraday trading, you need to wrap up your buying and selling within 24 hours to be counted as an investor in day trading.
#6. Brokerage Fees
In intraday trading, brokers generally lower their fees as huge trades are carried out daily.
How Should You Choose Stocks For Intraday Trading?
If you are thinking about how much day traders make per month, the answer depends upon your investing and knowledge of stock markets.
So to help you maximize the return, we bring you ways in which you should choose the stocks for Intraday trading.
#1. Stocks that have High Liquidity
Stocks with high liquidity can be easily bought and sold to earn quick profits in day trading.
But make sure in what you invest.
You must read, analyze and understand the 52-week cycle of stock and its performance with low and high values.
#2. Grounds of Volatility
Trading with shares in 24 hours is highly volatile and subject to market fluctuations.
Generally, a stock with a 3% market value fluctuation should not be bought or sold in a day trading as the chances of incurring losses are huge.
#3. Benchmark Index
One must rely on shares in intraday trading that have a positive benchmark index or high correlation value with reputed stock exchanges.
This cuts down the possibility of getting adversely affected by huge market fluctuation or the downfall of prices in shares.
#4. Big Size Trading
A trader must keep a count of the volume of stocks of a company participating in huge trading.
This indicates huge demand or supply of stocks and shares based on the company’s performance.
Capital earning or appreciation through trading with such stocks can help you earn some profit.
>> Top 5 Demat Account Broker in India
I hope you got the correct visibility of how much one can earn in day trading in India.
It is very difficult to earn a good margin for trading. Here’s what Zerodha founder Nithin Kamath says about traders.
A comment like this from the owner of the brokerage platform is definitely not encouraging.
Trading is definitely a tough job one must be clever in their trading and take the right decision at right time.
Therefore, learning and knowing your risk appetite is of prime importance.
#1. How are delivery trading and Day Trading related?
If the trading is down within 24 hours, it is intraday trading, but if the stocks are held for over 24 hours, it becomes part of the delivery trading.
#2. How can I determine the best Intraday Trading security?
Keep in mind to follow the four basic things and their movements before making any decision regarding the buying or selling of securities
– The pattern of Value Movement
– Huge Size Trading
– Effect of Market Fluctuation or Volatility
– Trends in the Market
#3. Can I start Intraday Trading with 1000 rupees?
Yes! There is no limit to intraday trading. You can start with 1000 rupees and go up to any value you decide to trade with.
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