how to earn money in share market daily

How To Earn Money In Share Market Daily: A Complete Guide

Published on June 28, 2023
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10 Min read time

Quick Summary

  • Share market is a platform where investors buy and sell shares.
  • The demand and supply in the market determines the share prices in the share market.
  • To earn money in share market daily, you need to understand the share market, do intraday trading, undertake short-term investments, and trade on news.

Table of Contents

The share market is one of the best places to invest and earn money daily, but success requires knowledge, the right strategies, and strong discipline. Many people enter the stock market with the dream of making consistent profits, but only a few manage to achieve this goal. If you are wondering how to earn money in share market daily, it is essential to learn the right techniques and develop a well-planned approach. Stock market trading is not about luck it involves research, patience, and the ability to make smart financial decisions. Without proper planning, beginners often face losses instead of profits.

Understanding how to earn money in share market daily means committing to continuous learning and disciplined trading practices to maximize your chances of success.

how to earn money in share market daily

Understanding the Share Market

Before diving into how to earn money in share market daily, it’s essential to understand how the stock market works. The share market is a platform where buyers and sellers trade stocks, which represent ownership in a company. The prices of these stocks fluctuate based on demand and supply, influenced by various factors such as company performance, economic conditions, and investor sentiment.

What is the Share Market?

The share market, also known as the stock market, is where shares of publicly listed companies are bought and sold. When you buy a share, you are purchasing a small piece of ownership in that company. The value of these shares can go up or down based on how well the company performs and other market factors. Understanding the basics of the share market is crucial for anyone looking to learn how to earn money in share market daily.

Types of Share Markets

  • Primary Market: This is where new shares are issued for the first time through Initial Public Offerings (IPOs). Companies use the primary market to raise capital by selling shares to the public. Investors can buy these new shares directly from the company.
  • Secondary Market: This is where existing shares are traded among investors. Once shares are issued in the primary market, they can be bought and sold in the secondary market. The stock exchanges, like the New York Stock Exchange (NYSE) or the National Stock Exchange (NSE), facilitate these trades.

How Does the Share Market Work?

Understanding how the share market works is fundamental to learning how to earn money in share market daily. Here’s a detailed explanation:

  1. Listing of Shares: Companies list their shares on a stock exchange through an IPO. This process involves regulatory approval and compliance with various financial disclosures.
  2. Trading of Shares: Once listed, shares can be traded in the secondary market. Investors buy or sell shares based on their analysis of the company’s performance, market trends, and other factors.
  3. Price Movements: The prices of shares change due to various factors, including the company’s financial health, economic indicators, and overall market sentiment. For example, positive earnings reports or favorable economic news can drive stock prices up, while negative news can lead to price declines

Essential Tips to Earn Money Daily in the Share Market

Choosing the right stocks is a key factor in understanding how to earn money in share market daily. Here are some detailed tips to help you make informed decisions and improve your daily trading success:

  • Pick Stocks with High Liquidity: High liquidity means that the stock can be easily bought or sold without causing a significant impact on its price. This is important for day trading because it allows you to enter and exit positions quickly. Stocks with high liquidity typically have a large number of shares traded daily, ensuring that there are enough buyers and sellers in the market.
  • Look for Trending Stocks: Focus on stocks that are currently trending and have strong price movements. These stocks are more likely to provide opportunities for quick profits. Trending stocks often have higher volatility, which can lead to larger price swings and potential gains.

1. Use Technical Analysis

Technical analysis plays a vital role in understanding how to earn money in share market daily by helping traders predict future stock price movements based on historical data and market trends. Here are some popular tools and how to use them effectively:

  • Moving Averages: This indicator smooths out price data to identify the direction of the trend. There are different types of moving averages, such as simple moving averages (SMA) and exponential moving averages (EMA). Moving averages can help you determine whether a stock is in an uptrend or downtrend and identify potential entry and exit points.
  • Relative Strength Index (RSI): RSI measures the speed and change of price movements. It helps identify overbought or oversold conditions. An RSI above 70 indicates that a stock may be overbought, while an RSI below 30 suggests that it may be oversold. Traders use RSI to identify potential reversal points.
  • Bollinger Bands: These bands are plotted two standard deviations away from a simple moving average. They help identify volatility and potential price reversals. When the price touches the upper band, it may indicate that the stock is overbought, while touching the lower band may suggest that it is oversold. Bollinger Bands can also help you identify periods of high and low volatility.

2. Risk Management Strategies

Managing risk is crucial when learning how to earn money in share market daily. Without proper risk management, even the best trading strategies can lead to losses. Here are some effective strategies to help you protect your investments while ensuring consistent profits in the stock market:

  • Set Stop-Loss Limits: A stop-loss order automatically sells a stock when it reaches a certain price, limiting your losses. Setting a stop-loss helps you manage risk by ensuring that you do not lose more than you can afford. Determine your risk tolerance and set stop-loss levels accordingly.
  • Avoid Investing All Money in One Stock: Diversify your investments to spread risk across different stocks. By investing in multiple stocks, you reduce the impact of a poor-performing stock on your overall portfolio. Diversification helps you manage risk and increase the likelihood of steady returns.
  • Trade with a Disciplined Mindset: Stick to your trading plan and avoid making impulsive decisions based on emotions. Emotional trading can lead to poor decisions and significant losses. Develop a trading plan that outlines your goals, risk tolerance, and strategies, and follow it consistently.

3. Follow Market Trends

Keeping up with market trends is essential when learning how to earn money in share market daily. Staying informed about market movements helps traders make better decisions and seize profitable opportunities. Here are some tips to help you stay updated and improve your daily trading strategy:

  • Keep Track of Economic News and Company Reports: Economic indicators and company earnings reports can significantly impact stock prices. Stay informed about key economic events, such as interest rate decisions, employment reports, and GDP data. Additionally, monitor company earnings reports and news to understand how they may affect stock prices.
  • Monitor Global Markets: Global market trends can provide valuable insights into potential price movements in your local market. Pay attention to major international markets, such as the US, Europe, and Asia, as they can influence your local market. Understanding global trends can help you make better-informed trading decisions.

Mistakes to Avoid

Avoiding common mistakes is essential when learning how to earn money in share market daily. Many traders lose money due to emotional decisions, lack of research, or poor risk management. Here are some detailed tips on what to avoid:

  1. Following Unverified Tips: Relying on unverified tips can be risky. Always conduct your own research before making any investment decisions. Be cautious of tips from unverified sources and rely on credible information. Doing your own research helps you make informed decisions and reduces the risk of falling for false information.
  2. Trading Without a Plan: Always have a well-thought-out strategy before investing. Develop a trading plan that includes your investment goals, risk tolerance, and criteria for selecting stocks. A trading plan helps you stay focused and make rational decisions.
  3. Avoid Emotional Decisions: Stick to your plan and avoid making decisions based on fear or greed. Emotional trading can lead to impulsive actions and significant losses. Stay disciplined and follow your trading plan.
  4. Overtrading: Overtrading can increase your risk and transaction costs. Limit the number of trades and focus on well-researched ones. Prioritize the quality of your trades over the quantity. Overtrading can lead to higher transaction fees and increased risk exposure.
  5. Ignoring Stop-Loss: Ignoring stop-loss orders can lead to significant losses. Always set a stop-loss for every trade to protect your investment. Regularly review and adjust your stop-loss levels based on market conditions to ensure they remain effective.

Ways to Earn Money in the Share Market Daily

To succeed in the share market daily income, you need effective strategies that provide consistent earnings. Here are some proven methods to help you understand how to earn money in share market daily:

1. Intraday Trading

Intraday trading is a popular strategy for those learning how to earn money in share market daily, as it involves buying and selling stocks within the same day to profit from small price movements. Here are some key points to consider:

  • Choose Liquid Stocks with High Trading Volume: Liquid stocks can be easily bought and sold without significantly affecting their price. High trading volume ensures that there are enough buyers and sellers in the market.
  • Use Technical Analysis to Identify Trends: Technical analysis involves studying historical price data and using indicators to predict future price movements. This helps in making informed trading decisions.
  • Set Stop-Loss to Minimize Losses: A stop-loss order automatically sells a stock when it reaches a certain price, helping to limit potential losses.

2. Swing Trading

Swing trading is a popular strategy for those learning how to earn money in share market daily, as it involves holding stocks for a few days to capitalize on short-term price movements. Here are some key points to consider:

  • Requires Technical and Fundamental Analysis: Swing traders use both technical analysis (studying price charts and indicators) and fundamental analysis (evaluating a company’s financial health) to make trading decisions.
  • Less Stressful than Intraday Trading: Since swing trading does not require constant monitoring of the market, it can be less stressful compared to intraday trading.
  • Good Way to Learn How to Earn Money in Share Market Daily with Lower Risk: Swing trading can be a good starting point for beginners as it involves lower risk compared to intraday trading.

3. Scalping

Scalping is a popular trading strategy for those looking to master how to earn money in share market daily. It involves making multiple trades throughout the day to earn small but frequent profits, which can add up to significant gains over time. Here are some key points to understand and implement scalping effectively:

  • Requires Quick Decision-Making and Execution: Scalpers need to make quick decisions and execute trades rapidly to take advantage of small price movements.
  • Works Best in High-Volatility Stocks: High-volatility stocks experience significant price fluctuations, providing more opportunities for scalping.
  • Small Profits Add Up Over Time: Although each trade may yield a small profit, the cumulative gains can be substantial over time.

4. Dividend Income

Investing in dividend-paying stocks is a reliable way to generate passive income while learning how to earn money in share market daily. These stocks offer regular payouts, ensuring steady earnings. Here are some key points to consider:

  • Choose Companies with a Strong Dividend History: Look for companies that have a consistent track record of paying dividends. This indicates financial stability and reliability.
  • Ideal for Passive Income Rather than Daily Earnings: While dividend income is not typically a daily earning strategy, it can provide a steady stream of passive income over time.

5. Futures and Options (F&O) Trading

Trading in derivatives like futures and options is a strategic way to maximize profits while learning how to earn money in share market daily. These instruments offer high returns but require careful risk management. Here are some key points to consider:

  • Requires Deep Market Knowledge: F&O trading is complex and requires a thorough understanding of the market and the instruments being traded.
  • Involves Higher Risk but Also Higher Rewards: While F&O trading can be highly profitable, it also carries a higher level of risk. It’s important to have a solid risk management strategy in place.

Best Practices for Consistent Profits

1. Keep Learning

Continuous learning is essential for anyone looking to understand how to earn money in share market daily. By following financial news, reading books, and taking online courses on topics like day trading for beginners, you can stay updated with market trends and enhance your trading knowledge for better decision-making.

2. Maintain a Trading Journal

Maintaining a trading journal is a powerful practice for those learning how to earn money in share market daily and understanding how to make money in the stock market for beginners. By tracking your profits and losses and analyzing your mistakes, you can refine your strategies and improve your trading performance over time.

3. Invest Only What You Can Afford to Lose

To effectively learn how to earn money in share market daily, it’s crucial to invest only what you can afford to lose. Avoid using borrowed money for trading and keep your emotions in check to make rational decisions.

4. Stay Patient and Disciplined

Patience and discipline are key to mastering how to earn money in share market daily. Stick to your trading plan even during market fluctuations and avoid panic selling to achieve consistent profits.

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Conclusion

To succeed in the stock market, focus on disciplined trading, technical analysis, and risk management. Avoid emotional decisions, set clear entry and exit points, and continuously refine your strategy through learning. If you’re wondering how to earn money in share market daily, patience, knowledge, and smart decision-making are key to consistent profits and long-term success.

By applying the right techniques and staying focused, you can gradually build a strategy that works best for you. Whether you are a beginner or an experienced trader, understanding how to earn money in share market daily will help you achieve financial stability and long-term success in the stock market.

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Frequently Asked Questions (FAQs)

Q1. Can I earn money daily in share market?

Yes, you can make money in the stock market every day! All you need is the right financial knowledge and market understanding. You can capitalize on daily market movements and profits. It takes diligent practice and dedication, but it can be done!

Q2. Can I earn 500 rs daily from share market?

Earning ₹500 daily from the stock market is possible but involves risk. It depends on factors like your investment amount, trading strategy, market knowledge, and risk tolerance. Consistent daily profits are difficult to guarantee, and losses can also occur. Proper research and caution are essential.

Q3. Which trading is best for beginners?

That depends a lot on the individual! You can start with low-risk investments like mutual funds or index funds. It is a great way to get comfortable with the basics of trading. That said, every trader is different. So definitely do your own research and decide what works best for you.

Q4. What are the risks of earning money daily in the stock market?

The risks include market volatility, potential loss of capital, and emotional stress. Day trading can be risky, especially for beginners, as it requires quick decision-making and the ability to handle losses.

Q5. Is it better to focus on stocks or other instruments to make money daily?

Stocks are the most common instruments for day trading, but some traders also use options, futures, and forex markets to earn daily profits. The choice depends on your knowledge, strategy, and risk tolerance.

Q6. What is the 7% rule in stocks?

The 7% rule in stocks suggests that if the value of a stock or your investment falls by 7% from its purchase price, you should consider selling it to limit potential losses. It’s a risk management strategy to avoid bigger losses, especially for short-term investors.

Q7. How to earn 3,000 RS in one day?

Here are some ways to earn ₹3,000 in one day:
1. Freelancing: Offer services like writing, graphic design, or web development.
2. Stock Trading: Buy and sell stocks for short-term gains (with caution).
3. Online Tutoring: Teach subjects you’re skilled in.
4. Sell Products: Sell items on e-commerce platforms.
5. Offer Local Services: Delivery, event planning, or handyman services.

Authored by, Amay Mathur | Senior Editor

Amay Mathur is a business news reporter at Chegg.com. He previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. His areas of coverage encompass tech, business, strategy, finance, and even space. He is a Columbia University graduate.

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