Intraday Trading For Beginners How To Earn Rs 3,000 Daily

Intraday Trading For Beginners: How To Earn Rs 3,000 Daily

Introduction:

Intraday trading is a popular method of trading in the stock market. It involves buying and selling stocks on the same trading day. This allows traders to take advantage of short-term price movements and make profits. Intraday trading is often recommended for beginners who are new to trading, as it offers less volatility than options trading.

What is Intraday Trading?

Intraday trading, also called day trading, involves the buying and selling of stocks on the same day. Traders aim to profit from short-term price fluctuations in stocks. For example, they can buy a stock in the morning and sell it in the evening if the price rises during the day.

Example of intraday trading:

Let’s understand intraday trading with an example. Suppose you buy 100 shares of an ITC company at Rs. 300 per share, with a total investment of Rs. 30,000. After an hour, the share price of ITC rose to Rs. 310. By selling shares at a higher price you make a profit of Rs. 1,000.

In intraday trading, you can take advantage of both upward and downward price movements. If the share price had fallen by Rs. 10 instead, you would have lost Rs. 1,000. It is important to note that in intraday trading, you should sell the shares on the same day.

Advantages of intraday trading:

Intraday trading has several advantages, especially for beginners:

1. No overnight risk: Intraday trading eliminates the risk of overnight price fluctuations. Traders do not hold positions overnight, which reduces the impact of overnight news or events on their trades.

2. Margin Trading: Intraday traders can take advantage of margin trading, which allows them to buy stocks at lower prices. With margin trading, traders can trade with less capital and potentially make higher profits.

3. Short selling: Intraday trading allows traders to engage in short selling, where they sell the stock first and buy it back at a lower price. It offers an opportunity to profit from upward and downward price movements.

4. High Profit Potential: Intraday trading offers high profit potential as compared to long term investment. Traders can take advantage of short-term price fluctuations and make quick profits.

5. Less focus on fundamental analysis: Unlike long-term investing, intraday trading does not require an in-depth analysis of the company’s fundamentals. Traders focus on identifying stocks with potential price movements rather than financial analysis of the company.

Disadvantages of intraday trading:

While intraday trading offers many advantages, it also has some disadvantages:

1. High risk: Intraday trading involves higher risk than long-term investing. Traders are exposed to the risk of price fluctuations within a single trading day, which can lead to losses.

2. Need for focus: Intraday trading requires traders to focus on their trades throughout the day. Inattention can lead to poor judgment and potential harm.

3. Emotional Control: Traders must control their emotions while trading intraday. Greed and fear can cloud judgment and lead to poor trading decisions.

4. Daily stock selection: Intraday traders must carefully select stocks to trade each day. They have to analyze market trends, news and technical indicators to identify stocks with potential price movements.

How to earn Rs 3,000 per day from intraday trading:

How to earn Rs 3,000 per day from intraday trading:

To earn Rs 3,000 per day from intraday trading, you need to follow these steps:

1. Invest enough capital: It is recommended to have a minimum capital of Rs 30,000 to earn Rs 3,000 per day. With a capital of Rs 30,000, you can take advantage of margin trading and invest in stocks up to Rs 1.5 lakh.

2. Pick high-potential stocks: Every morning, check the top profit and loss list on the NSE India website. Focus on Nifty 50 stocks that have shown potential for price movement. Look for stocks that have recently started to rise and have the potential to continue the upward trend.

3. Timing is important: Be sure to check the list of top gainers and losers early in the morning when the market opens. This will give you an opportunity to identify stocks with potential price movements and enter trades at the right time.

4. Aim for 2% return: To earn Rs 3,000 daily from a capital of Rs 30,000, you need to aim for 2% return daily. You can achieve this goal by choosing stocks that have the potential to grow by 2% or more.

5. Regular Research: Stay updated with market trends, news and technical indicators. Conduct regular research to identify stocks with potential price movements. This will help you make informed trading decisions. It is important to note that intraday trading involves risk and returns may vary. It is recommended to have a thorough understanding of trading strategies, risk management and market analysis before engaging in intraday trading.

Conclusion:

Intraday trading can be a profitable option for beginners to earn money from trading. By adopting a systematic approach, selecting high-potential stocks, and managing risk, it is possible to earn Rs 3,000 per day from intraday trading. However, it is important to remember the risks involved and always trade responsibly.

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