Introduction
Earning 1 lakh daily from the share market may seem daunting and highly realistic. However, you can do so by deploying the right trading strategy. Read on if you are wondering how to make a lakh daily from markets.
Strategies You Can Use to Earn Rs 1 Lakh Per Day
Here are some strategies you can use to reach this highly ambitious but achievable target:
Delivery trading is one way to earn a lakh per day from markets. Delivery trading involves placing a buy order for company shares through your trading account. Once your buy order is executed, the company's shares are delivered to your Demat account. You can sell the shares once you have them in your Demat account.
However, note that the time taken to deliver the shares in your Demat account can affect your returns. Today, stock markets follow a T+1 settlement cycle. Efforts are being made to bring it down to T+0.
This is another way to earn a lakh daily from the markets. Here, the buying and selling of securities happen within the same day. It helps you take advantage of short-term price fluctuations.
You don't have to wait T+1 day to get shares delivered to your Demat account in intraday trading. As you buy and sell shares within the same day, this form of trading has a higher potential to deliver high returns.
Trading in derivatives can also potentially earn you Rs 1 lakh per day from markets. However, note that derivative contracts such as futures and options are a little more complex and warrant deep research before starting. That said, one of the significant advantages of this form of trading is that you don't require to put the entire investment amount upfront.
You need to pay only a small portion, called margin. You can buy more contracts by paying only a portion of the investment. This can result in amplified gains if markets perform as you expect. However, you can face significant losses if they don't.
Commodity trading is another way through which you can achieve your goal. This form of trading allows you to trade in commodities like oil, silver, and gold, among others. You can speculate on their price movements through futures and options. Buy when prices are low and sell when they are high. The difference is your profit.
Start by learning about the commodities you want to trade. Follow market trends and news. Use trading platforms to make your trades, and set a clear budget and stick to it.
Essential Things to Keep in Mind
While the strategies mentioned above can help you achieve your set target, there are certain things to be mindful of. These include:
Proper homework is essential to be successful in any field, and stock market investing is no different. You must educate yourself on various aspects of investing, including technical and fundamental analysis. There are ample resources to do so. You can take online courses and follow financial news channels and expert blogs to build your knowledge.
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Adopt a Long-term Perspective
It's crucial to take a long-term approach. Pick up fundamentally strong stocks that have shown steady and consistent growth over the years. Hold them for extended periods, and don't panic following short-term volatility. Remember, stock markets have rewarded those who have exhibited patience in holding on to their investments. It's akin to playing test cricket, where you need to be patient and disciplined.
Optimum diversification is a core investing tenet. Do not put all your money in a single stock or sector. Instead, choose different stocks and invest across sectors. Diversification mitigates risk and ensures that the non-performance of one sector or stock is covered by another.
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Equally essential is to invest in high-liquid stocks. It ensures you can buy and sell stocks when needed, hassle-free.
Wrapping it Up
You can earn Rs 1 lakh daily from markets with the right mindset and approach. Seek professional advice when stuck, and learn continuously to make prudent investing decisions.
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