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How to Earn Money in Share Market Daily in India 2024

Do you want to learn how to earn money in share market daily in India? then you are in the right place, in this article, you will learn complete details about the share market and How to Earn Money in Share Market Daily in India also you learn the basics of advanced strategies that help to earn money from the stock market.

The share market is a place where you can buy and sell shares of various companies and earn profits from the fluctuations in their prices. However, investing in the share market is not a simple task.

How to Earn Money in Share Market Daily in India
How to Earn Money in Share Market Daily in India

Let’s begin.

How to Earn Money in Share Market Daily in India

It requires a lot of knowledge, skills, and strategies to succeed. In this article, I will provide you with a brief overview of the basics of the share market, the different investment approaches, and some essential tips for success.

Basics of the Share Market

The share market is also known as the stock market or the equity market. It is a platform where buyers and sellers trade shares of different companies.

A share is a unit of ownership in a company. When you buy a share, you become a shareholder of that company and have a claim on its assets and earnings.

The price of a share depends on the demand and supply of the market, as well as the performance and prospects of the company.

The share market is regulated by the Securities and Exchange Board of India (SEBI), which ensures fair and transparent trading practices.

The share market operates through two major stock exchanges in India: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

These stock exchanges provide a platform for listing, trading, and settling shares of various companies. They also provide indices that track the performance of the market, such as the Sensex and the Nifty.


How to Earn Money in Share Market Daily in India 2024

There are different ways to invest in the share market, depending on your goals, risk appetite, and time horizon. Some of the common investment approaches are:

  • Intraday trading: This is a short-term trading strategy where you buy and sell shares within the same trading day.
    You aim to profit from the price movements of the shares during the day. You do not hold any shares overnight and square off your positions by the end of the day.
  • Swing trading: This is a medium-term trading strategy where you buy and sell shares over a period of a few days to a few weeks.
    You aim to profit from the price trends of the shares over a longer duration. You hold your shares for more than one day and exit your positions when you achieve your target or stop-loss.
  • Long-term investing: This is a long-term investment strategy where you buy and hold shares for a period of a few months to a few years.
    You aim to profit from the growth and dividends of the shares over a longer term. You do not sell your shares frequently and stay invested for the long run.

Each of these investment approaches has its own advantages and disadvantages and requires different skills and techniques to execute.

Let’s look at each of them in more detail.

Intraday Trading Strategies for Daily Profits

Intraday trading is a popular and challenging way to earn money in the share market daily. It involves buying and selling shares within the same trading day, and closing all your positions before the market closes.

You do not take any delivery of the shares and only trade in the cash segment. Intraday trading can be profitable if you have a good understanding of the market, a sound trading plan, and a disciplined execution.

Characteristics of intraday trading are:

  • It is a high-risk and high-reward strategy. You can make quick profits from small price movements, but you can also lose money fast if the market goes against you.
  • It requires a lot of concentration and attention. You have to monitor the market constantly and make swift decisions based on the changing conditions.
  • It involves a lot of technical analysis. You have to use various technical indicators and tools to identify the entry and exit points, the trend and momentum, and the support and resistance levels of the shares.
  • It requires a lot of risk management. You have to use stop-loss orders to limit your losses and protect your capital.
    You also have to follow a strict money management system to allocate your funds and control your emotions.

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Some of the common technical indicators and tools used in intraday trading are:

  • Moving Averages: These are the average prices of the shares over a certain period of time. They help to smooth out the price fluctuations and show the direction and strength of the trend.
    There are different types of moving averages, such as simple, exponential, and weighted. You can use two or more moving averages to generate buy and sell signals, such as when a shorter-term moving average crosses above or below a longer-term moving average.
  • Relative Strength Index (RSI): This is a momentum indicator that measures the speed and change of the price movements. It ranges from 0 to 100 and shows the overbought and oversold conditions of the shares.
    Generally, a reading above 70 indicates that the share is overbought and may reverse soon, while a reading below 30 indicates that the share is oversold and may bounce back soon.
    You can also use the RSI to identify the divergence and convergence of the price and the indicator, which can signal a potential reversal or continuation of the trend.
  • Bollinger Bands: These are volatility bands that are placed above and below a moving average. They expand and contract based on the volatility of the price movements. They help to identify the range and breakout of the shares.
    Generally, when the bands are narrow, it indicates that the share is in a consolidation phase and may break out soon, while when the bands are wide, it indicates that the share is in a trending phase and may continue in the same direction.
    You can also use the bands to identify the overbought and oversold conditions of the shares, such as when the price touches or crosses the upper or lower band.

Below are the common intraday trading strategies:

  • Trend following: This is a strategy where you follow the direction of the prevailing trend and trade in the same direction. You can use moving averages, trend lines, and chart patterns to identify the trend and its strength. You can enter the trade when the price confirms the trend, such as when it breaks out of consolidation or retraces to a support or resistance level. You can exit the trade when the trend weakens or reverses, such as when it breaks a trend line or forms a reversal pattern.
  • Scalping: This is a strategy where you make small profits from frequent trades. You can use price action, candlestick patterns, and technical indicators to identify the entry and exit points. You can enter the trade when the price shows a strong momentum, such as when it breaks a resistance or support level, or when it forms a bullish or bearish pattern. You can exit the trade when the price shows a sign of exhaustion, such as when it reaches a target or stop-loss level, or when it forms a reversal or indecision pattern.
  • Reversal: This is a strategy where you trade against the direction of the prevailing trend and anticipate a change in the trend. You can use RSI, Bollinger Bands, and divergence and convergence to identify the overbought and oversold conditions and the potential reversal points. You can enter the trade when the price shows a reversal signal, such as when it crosses the upper or lower band, or when it forms a divergence or convergence with the indicator. You can exit the trade when the price confirms the reversal, such as when it crosses the moving average or the opposite band, or when it forms a convergence or divergence with the indicator.

Intraday trading can be a lucrative way to earn money in the share market daily, but it also requires a lot of skill, discipline, and risk management.

You have to be prepared for the volatility and uncertainty of the market and have a clear trading plan and strict execution. You also have to keep learning and improving your trading skills and strategies.


Swing Trading for Short-Term Gains

Swing trading is another way to earn money in the share market daily. It involves buying and selling shares over a period of a few days to a few weeks, and capturing the price swings of the shares.

You do not trade in the cash segment, but in the futures and options segment, where you can leverage your capital and increase your returns.

Swing trading can be profitable if you have a good understanding of the market, a sound trading plan, and a disciplined execution.

Some of the characteristics of swing trading are:

  • It is a medium-risk and medium-reward strategy. You can make decent profits from moderate price movements, but you can also lose money if the market goes against you.
  • It requires a moderate amount of concentration and attention. You do not have to monitor the market constantly, but you have to keep track of the market trends and news that may affect your trades.
  • It involves a lot of fundamental analysis. You have to use various fundamental factors and tools to identify the quality and value of the shares. You also have to consider the macroeconomic and industry-specific factors that may influence the demand and supply of the shares.
  • It requires a lot of risk management. You have to use stop-loss orders to limit your losses and protect your capital. You also have to follow a strict money management system to allocate your funds and control your emotions.

Some of the common fundamental factors and tools used in swing trading are:

  • Company financials: These are the financial statements and reports of the company that show its performance and prospects. They include the income statement, the balance sheet, the cash flow statement, and the annual report. They help to evaluate the profitability, liquidity, solvency, and growth of the company. Some of the key financial ratios and indicators that are used to analyze the company's financials are:
    1. Earnings per share (EPS): This is the amount of profit that the company earns for each share. It is calculated by dividing the net income by the number of outstanding shares. It shows the earning potential and efficiency of the company. A higher EPS indicates a more profitable and efficient company.
    2. Price-to-earnings ratio (P/E): This is the ratio of the market price of the share to its earnings per share. It shows how much investors are willing to pay for each unit of earnings. A higher P/E indicates a more expensive and overvalued share, while a lower P/E indicates a cheaper and undervalued share.
    3. Price to book value ratio (P/B): This is the ratio of the market price of the share to its book value per share. It shows how much investors are willing to pay for each unit of net assets. A higher P/B indicates a more expensive and overvalued share, while a lower P/B indicates a cheaper and undervalued share.
    4. Return on equity (ROE): This is the ratio of the net income of the company to its shareholder equity. It shows how much profit the company generates from its equity. A higher ROE indicates a more efficient and profitable company, while a lower ROE indicates a less efficient and profitable company.
    5. Debt to equity ratio (D/E): This is the ratio of the total debt of the company to its shareholder equity. It shows how much debt the company has relative to its equity. A higher D/E indicates a more leveraged and risky company, while a lower D/E indicates a less leveraged and risky company.

Some of the common swing trading strategies are:

  • Breakout: This is a strategy where you trade the breakout of a resistance or support level. You can use technical indicators, chart patterns, and volume analysis to identify the potential breakout levels. You can enter the trade when the price breaks above or below the level with high volume and momentum. You can exit the trade when the price reaches your target or stop-loss level, or when it shows a sign of reversal or consolidation.
  • Trend following: This is a strategy where you follow the direction of the prevailing trend and trade in the same direction. You can use moving averages, trend lines, and chart patterns to identify the trend and its strength. You can enter the trade when the price confirms the trend, such as when it bounces off a support or resistance level, or when it forms a continuation pattern. You can exit the trade when the trend weakens or reverses, such as when it breaks a trend line or forms a reversal pattern.
  • Mean reversion: This is a strategy where you trade the mean reversion of the price to its average value. You can use technical indicators, such as Bollinger Bands and RSI, to identify the overbought and oversold conditions of the shares. You can enter the trade when the price reaches the extreme level and shows a sign of reversal, such as when it touches the upper or lower band, or when it diverges from the indicator. You can exit the trade when the price returns to the mean value, such as when it crosses the moving average or the opposite band, or when it converges with the indicator.

Swing trading can be a profitable way to earn money in the share market daily, but it also requires a lot of skill, discipline, and risk management.

You have to be prepared for the volatility and uncertainty of the market and have a clear trading plan and strict execution. You also have to keep learning and improving your trading skills and strategies.

Long-Term Investing for Steady Growth

Long-term investing is a popular and rewarding way to earn money in the share market daily. It involves buying and holding shares for a period of a few months to a few years, and capturing the growth and dividends of the shares.

You do not trade frequently but stay invested for the long run. Long-term investing can be profitable if you have a good understanding of the market, a sound investment plan, and a disciplined execution.

Some of the characteristics of long-term investing are:

  • It is a low-risk and low-reward strategy. You can make moderate profits from the growth and dividends of the shares, but you can also lose money if the market goes down or the company performs poorly.
  • It requires a low amount of concentration and attention. You do not have to monitor the market constantly, but you have to keep track of the company news and events that may affect your investments.
  • It involves a lot of fundamental analysis. You have to use various fundamental factors and tools to identify the quality and value of the shares. You also have to consider the macroeconomic and industry-specific factors that may influence the demand and supply of the shares.
  • It requires a lot of patience and discipline. You have to resist the temptation to sell your shares during the short-term fluctuations of the market and stay invested for long-term growth and dividends.

Some of the common fundamental factors and tools used in long-term investing are:

  • Value investing: This is a strategy where you buy undervalued shares of good companies and hold them until they reach their fair value.
  • Diversification: This is a strategy where you invest in a variety of shares across different sectors and industries, and reduce your risk and volatility. You can use mutual funds, index funds, and exchange-traded funds (ETFs) to diversify your portfolio and gain exposure to the broad market. Some of the common types of mutual funds and ETFs are:
    1. Large-cap funds: These are the funds that invest in the shares of large and established companies with a market capitalization of more than Rs. 10,000 crore. They are less risky and volatile than small-cap and mid-cap funds but also offer lower returns.
    2. Mid-cap funds: These are the funds that invest in the shares of medium-sized companies with a market capitalization of Rs. 500 crore to Rs. 10,000 crore. They are more risky and volatile than large-cap funds but also offer higher returns.
    3. Small-cap funds: These are the funds that invest in the shares of small and emerging companies with a market capitalization of less than Rs. 500 crore. They are the most risky and volatile among the three but also offer the highest returns.
    4. Index funds: These are the funds that track the performance of a particular index, such as the Sensex or the Nifty. They offer the same returns as the index and have lower expenses and turnover than actively managed funds.
    5. Sectoral funds: These are the funds that invest in the shares of a particular sector or industry, such as banking, IT, or pharma. They offer high returns if the sector performs well, but also carry high risk if the sector underperforms.

Long-term investing requires a lot of patience, discipline, and research. You have to be prepared for the short-term fluctuations and volatility of the market and stay invested for the long-term growth and dividends of the shares.

You also have to keep learning and improving your investment skills and strategies.


Essential Tips for Success in the Share Market

Below are some essential tips that can help you know How to Earn Money in Share Market Daily in India and Success in the Share Market :

Thorough research and understanding:

Before investing in any share, you should do thorough research and analysis of the company, the sector, and the market.

You should read the financial statements and reports of the company, the news and events that may affect the company, and the trends and forecasts of the market.

You should also understand the risks and rewards of the investment and the tax implications of the gains and losses.

Starting small and gradually increasing investment amounts

You should start with a small amount of investment and gradually increase it as you gain more experience and confidence.

You should not invest all your savings in the share market and should keep some emergency funds for unforeseen expenses.

Emotional discipline and avoiding impulsive decisions

You should avoid making emotional and impulsive decisions based on the short-term fluctuations of the market. You should have a clear investment plan and stick to it, even if the market goes against you.

You should also avoid following the herd mentality and invest in the shares that are popular or hyped.

Take guidance from experienced investors

You should seek guidance and advice from experienced investors, such as financial advisors, brokers, or mentors.

You should also join online communities and forums where you can interact with other investors and learn from their experiences and insights.

The best way to learn How to Invest and Earn in the Stock Market

The best way to learn how to invest and earn in the stock market is to start by educating yourself.


FAQs of How to Earn Money in Share Market Daily in India

How can I earn 1 daily in share market?

You can earn by learning the stock market and making strategies with follow discipline.

Can I earn 500 rs daily from share market?

Yes, you can earn by trading in equity and intraday and investing in the share market.

Can I earn 2000 daily in intraday trading?

Yes, just got knowledge from the internet on the share market to build your intraday strategies and follow with proper discipline then you can earn 2000 daily in intraday trading.

Can I earn 20000 per day in the stock market?

Yes, you can earn by trading in equity and intraday and investing in the share market.

Conclusion

In this article, we have discussed How to Earn Money in Share Market Daily in India, the basics of the share market, the different investment approaches, and some essential tips for success.

We have covered intraday trading, swing trading, and long-term investing, and their characteristics, strategies, and tools.

We have also explained the importance of research, discipline, and patience in the share market. We hope that this article has provided you with a good understanding of How to Earn Money in Share Market Daily in India. Happy Trading with investing!

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