One question is always asked to me where ever I go, what is a simple trick to earn little money regularly in the Indian stock market? In turn how to earn 500Rs a Day in Stock trading.
This is a very thoughtful question, 40% of the people who come to trading are only looking to earn their daily expenses, A little bit of money say 500Rs a day . Let me answer this question in my way based on experience i have in past 10 year.
Have minimum investment of 50,000Rs. Also, you going to do delivery Equity trades, hence you need a discount brokerage firm account. You can discuss with me to choose the best firm and i will help you with opening procedures also.
Further, you need to first track few companies, let say around 50 to 100Companies and penny stocks to mid price scripts. Scripts here refers to Company and its last share price.
Now, form your holdings you should divide the funds into 2halfs, 25k each. Use the first half for trading and 2nd half for recovery backup.
How to and where to trade is the next question rite?, here we go..
Split the 25,000Rs to at least 10companies, 2,500Rs to one company, invest in them. If possible you can invest 15companies also. By this we you might have bought 10 or 20 or 50 or even 100Shares also based on the company share price you choosing.
Till now what you have done is level one investment, so it the invested companies any of the one script at least give you some 500Rs profit by a week to 15 days time. Remember the buy process to be done during the positive market turning time, we call it as bearish to bullish reversal.
You can keep selling shares which ever turns to your expected profit, keep paying out the money you have earned as profit. Out of 10 companies you invested at least 4 of them remain non-benefit companies, giving you some loss in them.
So use the 25K of your 2nd half investment and average those 4 companies during the Bearish time. During the bearish time you may again pick some fresh companies to invest. Don’t worry at least 1lakh good companies available to play around.
Increase you investment and number of companies you invest by time. Always trade entry to be during Bearish to Bullish and Exit to be Bullish to Bearish. Your entry time is the same time for averaging also.
This style of trading is my own and I have succeeded in this, 15 days to 3 months once we get opportunity of bearish to bullish cycle change or vice-versa. If put little efforts then definitely you can be one among the expert in this style
India is a land of Inspiration, this method is an inspiration of Indian Recipes we prepare at home. We just call it as A Curry, but we might have added 20 to 30 ingredients to it. All together it is awesome and each ingredient is of very small quantity but contribute the best together.
Similarly, a smaller the volume of shares you buy with the number of companies you invest is the lesser of risk, regular of profit. Of-course, it will take time to learn to prepare Indian recipes so here too, it will take to digest and master this logic. However, have a mentor for your initial trials. nothing wrong in it. Hope you earn sufficient.
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