Tips To Make A Quick Profit from Stock Market Investments | Motilal Oswal

Stock Market Investment Tips To Make A Quick Profit

Stock  market investments reached the pinnacle of their success as investment markets in 2021. Of course, before that, a serious health issue had hit the world (and India) in the worst possible way, and everything, including investment came to a standstill. However, when things started opening up again, the stock market represented a light at the end of the tunnel. Now, the zeal to invest has abated somewhat, but making money in stocks is viewed as a profitable way to invest, especially when fixed income instruments generate such low rates of interest. 

The Purpose of Stock Market Investments

The easy part of investment in the stock market is to open a demat account and linked trading and bank accounts. Transactions aren’t challenging either, as you can find a reputable broker and do everything online, including gaining access to user-friendly platforms to trade on. The more challenging part of dealing with the stock investment market may be the actual investing part, in terms of which stocks to invest in and whether you will earn profits or not. 

Furthermore, it should be noted that a large majority of investors enter the realm of stock investment with the sole purpose of making money, and making it in a brief span of time. So, the purpose of investment for different individuals varies, and this determines how and when you make profits - quickly or slowly. 

Earning Money in Stocks 

There are different ways to invest in the stock market today. Besides direct equity investment which is the way chosen by most investors, you can also invest in mutual funds, mutual funds via a SIP, or stock derivatives like futures and options contracts. Then, there is yet another way to invest in a new company that is just about to become a public company and get listed on an exchange with an upcoming IPO

Depending on the mode you choose for stock market investments, you can assure yourself of time frames in which to earn profits. Most traditional (and successful investors of the likes of Warren Buffet) advise that the way to earn top profits from stocks is to hold a few good quality stocks for the long run. This is the strategy of “buy and hold” that has brought huge rewards to many. However, not everyone wants to wait long, and you can try some tips and tricks to make money quickly too. 

Quick Profit Tips in the Stock Market

Here are some handy tips to earn fast profits in stock market investments today: 

  • High Volume Stock - In case you wish to make a quick profit in stocks, you can follow some of the rules and strategies of day traders. Viewing stocks that have a high trading volume or are very liquid, may help you earn quick gains. Since these stocks, typically, have to close in terms of positions before a trading day ends, they tend to be more liquid. 
  • Do Background Work - You cannot enter the stock market before doing some background work on the stocks you feel will give you gains in the short term. You must do a thorough analysis that will help you to identify those stocks that will prove profitable. You may not wish for profits within a day, but other stocks exist that can give you profits in brief periods. 
  • No Place for Fear and Greed - In any investment market, there is no room for emotions like fear and greed. Feelings can only hamper your strategies and goals, especially while making quick decisions to turn investments into profits. Traders end up biting off more than they can chew and make losses if they let emotions get in the way. The right decisions can be generated with a clear and strategic head. 

Making Stocks Work for Profit

Today, it is simple to open a demat account or invest in any upcoming IPO. Everything is done quickly on online platforms. It is also easy to invest in stocks online and trade so that you make money fast. However, this involves some work like knowing your points of entry and exit and identifying stocks to invest in. 

 

Related Articles: Follow these 5 Expert Advices to Get Started with Investing | 5 Rules Every New Investor Must Know Before Investing | 6 Stock Market Investing Disasters To Stay Away From |  10 common mistakes made by SIP investors | 4 Smart Must-Follow Investment Tips for Beginners in India

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