10 Ways to earn money from stock market

Dear Friends, you all may know about Stock market. But some people don't know in details about Stock Market. Most of the people say that stock market is a gambling. But in real it's not true.

In fact, in stock market with proper knowledge, Technical, Analysis and continuous practice unlimited profits can be generated. Also. You too can earn money and make a good career in the Stock market with proper knowledge & technical analysis.

There are so many ways to earn money from stock market. Out of which we will see TEN main ways of trading and earning money from stock market.

Method 1. Investment. (one day to unlimited period)

  • Purchasing anything to earn extra money in future by price rising is called as investment.
  • If you choose a good and financially strong company, and do invest in that company for a long term (as long as you wish).
  • Long term means more than one day to maximum limited period.
  • Here you can make money work for you while you sleep.

Features and requirements of investment.

  • Here you have to purchase and take delivery of the shares into your Demat account.
  • You have to pay full amount of the price of shares at the time of Purchasing.
  • You should have to forget the shares for months and years together that you have invested in that stock.
  • You should have sound knowledge of fundamental and technical analysis before investing.
  • If you are investing with proper analysis then you can earn unlimited profits.
  • If you don't have proper knowledge of investing in stock market then there is a chance of capital becoming zero also.
  • If the profits from investments are again reinvested in the market you can multiply your capital.

There is also a bonus way of earning profits in investment - Dividend

  • During long-term investment you can earn profits from dividend also.
  • Dividend means, some of the best companies share the profits of their company with their shareholders every year.

Method 2. Intraday. (Trading within same day)

  • In intraday trading traders must buy and sell stocks in same day within the market hours.
  • Here the risk will be more compared to delivery trading
  • But profits will also be more compared to delivery trading.
  • One can earn money on daily basis with proper knowledge and Limited funds are so.

Features and requirements of intraday trading.

  • Catching small moves
  • Intraday trading traders try to catch very small moments at the up or down using different strategies to make profits.
  • You can earn big profits in day trading.
  • It will be a gambling without proper knowledge and study.
  • So learning is very much important for earning money in stock market.
  • We can see that the word earning is inside Learning. This is not a coincidence. But it's a lesson for us.
  • So if we need to focus on learning Earning will automatically follow us.
  • So first learn and then earn.
  • Intraday trading psychology.

    • So many rumors are there about Intraday trading.
    • But with proper knowledge of money management psychology risk reward and a better strategy you can make unlimited profits in intraday trading.
    • Psychology is the most important factor which affects intraday trading than other things.
    • The factors important for Intraday trading can be summarised as below. 60% psychology.
    • 20% risk reward and money management. 20% strategy.

    Method 3. Swing trading (1 Day to 1 month)

    • Here traders take delivery of the shares and hold them for a period of few days to period of several weeks.
    • Here traders capture the momentum of short-term.
    • For capturing short-term moves a trader must have sound knowledge of fundamental and technical analysis.
    • Traders earn profits of 2% to 25% within a short span of one or two weeks.
    • Swing trading is less risky compared to intraday trading.

    Method. 4 : Futures trading.

    • Features are the financial contracts obligating the buyer to purchase and sellers to sell an underlying asset and have a predetermined date and price.
    • Futures are not original assets / shares.
    • Trading in futures doesn't include any original asset
    • But traded only the contracts on behalf of underlying assets / shares.

    Method 5 : Options trading.

    • An option is a derivative contract of an underlying asset which gives a holder the right but not the obligation to buy or sell an underlying asset at the strike price on or before the expiry date.
    • Options are the most traded asset class in stock market.
    • Options trading is complicated but it's very high rewarding.
    • Sometimes your capital may get doubled or tripled in few minutes.
    • But the important thing is knowledge so learning is the only solution to trade in the stock market.

    Method 6.: BTST trading. (Buy Today Sell Tomorrow.)

    • Hear traders can buy the shares today and sell them tomorrow itself without taking delivery of them into demat account.
    • Hear traders make use of small movements of ups and gap ups of next day.
    • But knowledge plays the very important role here also.

    Method 7 : STBT trading. (Sell today buy tomorrow)

    • Here traders sell shares today and buy them back tomorrow.
    • In this type of trading you can sell the shares which you don't own/ have in your demat account .

    Method 8. Arbitrage.

    • In this type of trading traders earn profits by taking the benefits of price difference of shares in different exchanges.
    • For example. Price of share is 101rupees in NSE And it is 102 in BSE You can purchase shares from NSE at lower price and sell them in BSE at an higher price.

    Method 9. : Hedging

    • A hedge is an investment that protects your finances from a risky situation.
    • Hedging is done to minimize or offset the chance that your assets will lose value.
    • It also limits your loss to a known amount if the asset does lose value.
    • Hedging means. If the shares in your portfolio are going in loss then you can take position in derivatives with opposite direction.
    • Hedging means. If the shares in your portfolio are going in loss then you can take position in derivatives with opposite direction.

    Method 10. : Margin trading.

    • Margin trading is a facility under which you buy stocks that you can't afford.
    • You are allowed to buy stocks by paying a marginal amount of the actual value. ...
    • Margin trading can be considered leveraging positions in the market either with cash or security by investors. Your broker funds your margin trading transactions
    • In this type of trading you will be getting more margin on your capital / portfolio.
    • Margin trading is like double edged sword.
    • If you want to do margin trading then money management is very very important.
    • Without proper knowledge of money management and risk reward you should not do margin trading.
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