How to Earn 5000 Rs Daily in the Share Market?

The dream of being able to earn a significant income through the stock market is a strong one. For many people, making Rs. 5,000 a day in the share market is the ultimate goal. While it is possible, it’s not get-rich-in-no-time. It requires a specific approach, lots of discipline, and an in-depth understanding of what moves the market’s tides, usually through a method called intraday trading. This blog will act as your important tool in understanding exactly how this can be achieved, the process, and most importantly, the risks.

Is Earning 5,000 Rs Daily Real?

The short answer is yes, but the downside is that it is not easy and is extremely risky, especially for newbies. Making Rs. 5,000 a day in the share market is typically attempted through something called intraday trading (when we buy and sell stocks within the same trading session). Whereas long-term investing is based upon the fundamentals of a company, intraday trading is almost exclusively based on short-term price movement.

More importantly, an important aspect of it all is: how much capital is needed for intraday trading? If you want to make predictable profits of Rs. 5,000 (or more), you need to be able to generate a percentage return on your capital. For example, a 2.5% daily return on a capital of Rs. 2,00,000 would represent a return of Rs. 5,000. While this may sound relatively easy, a 2.5% daily return is extremely high and takes a lot of skill and rewards risk-taking.

How to Earn 5000 Rs Daily in the Share Market? A Step-By-Step Guide

The real work begins here. If you want to stand a chance of hitting this target, you must have a process.

1. Build a Strong Foundation of Knowledge

You can not trade unless you know what you are trading in. This requires understanding technical analysis, meaning reading charts, price patterns, and indicators to determine what future price movement will be. One must learn technical analysis to honestly make decisions about when to trade and when to exit the trade. It helps to be learned in other forms of analysis as well. To build your expertise, consider enrolling in our Advanced Technical Analysis Cert Course.

2. Develop a Robust Trading Strategy

A strategy is a plan. With no plan, you are just gambling. It will also require specific strategies aimed at profits of Rs. 5,000 per day.

• Scalping: The act of making many trades a day, with each trade dealing with a very small profit. This strategy is to make various small trades throughout the day, accumulating profits along the way.

• Momentum Trading: A strategy based on discovering stocks that are likely to trend with strong price movement to trade in the direction of the trend. This is also typically meant for volatile stocks.

• Breakout Trading: A breakout is when a stock moves above a resistance level or below a support level. With this method, you will try to capture the new resulting trend.

3. Paper Trading for Practice

Before you risk your own money, you should get practice with a paper trading account. This allows you to put your strategies to the test in a live market environment without any risk of losing money. This is the best possible way to fine-tune your skills and gain some confidence.

4. Choose the Right Tools and Resources

To be a professional trader, you need many tools. These include a broker with low fees, a fast trading platform, and access to live market data and news.

Risk Management and Discipline

This paragraph is non-negotiable. Without proper risk management, you will lose money and usually quite quickly. If you wish to earn a living and achieve a daily income of in excess of Rs. 5,000, you must also learn to take that equivalent potential loss. The golden rule is to protect your capital at any cost.

• Stop-loss: You must always use a stop-loss order. This is a pre-determined price at which your trade will automatically exit to minimize losses. This is the most important piece of equipment for a daily trader.

• Position Sizing: Never take on more than a small percentage of your capital in one trade. A good rule of thumb is to risk no more than 1-2% of your capital on one trade.

• Emotional Control: Your biggest enemies are greed and fear. Follow your trading rules and don’t let emotions get in the way and make you take unnecessary actions. A disciplined investor is what separates consistent traders from losers.

• Trading Journal: Keep a trading journal. You should also be writing down your trades and then analyzing your successes and failures and refining your tactics.

Conclusion

Making Rs. 5,000 a day in the share market is hard, but not impossible! It's going to take tremendous commitment, a personal commitment to learn, and your dedication is going to be the difference from a loser and being a consistent trader. This is a high-risk, high-reward process. Not for the faint-hearted! Only you can choose if this journey is right for you. Start with a solid platform, look for successful intraday trading strategies for beginners, and most importantly, learn risk management and discipline. Remember, becoming a consistently profitable trader is like running a marathon, not a sprint!