How to Earn money via day trading is one of the most common questions, as someone as a beginner can only look for instant income like earning daily with day trading. As a trader, I will explain the pros and cons of day trading today.
Welcome to my blog! Here I will show you how to start and earn via trading with less capital and make it big eventually with learnings. Also, in the end, I’ll be sharing a few points to remember and what not to do to lose your capital.
Disclaimer…
Please do not think you all will make money through trading overnight as it requires an ample amount of time and patience. Trust the process.
Trading is a pure business. You will encounter both Profits and losses even if you gain experience. Most professional traders know how to cut losses early and hold profits.
It’s not any Ponzi scheme or becoming rich quickly overnight.
My Journey of Trading
Let me first walk you through my journey of trading and I hope My Experiences would help you all to not do something that is harmful to your health and your wealth
Just like you, I was also curious and fascinated by what is trading and how to trade and make money on daily basis. I heard it from some of my friends and on Youtube. They were making good money at least from what I have seen from their videos and screenshots of their trading terminal. In the beginning, I thought they must be joking or saying anything to get views on their video. But little did i know that it’s a fortune and a way to escape from middle-class poverty and Matrix.
Now without any further delay, I jumped on to create my trading account on Zerodha. It is one of the biggest and oldest Discount brokers with whom you can create your DEMAT ACCOUNT for free and start Investing and Trading. Without a Demat cum trading account you can not start trading.
Beginners start with “OPTIONS TRADING and …..Lose their capital in first 3 months .” Read the Disclaimer above WHY!
If the ‘Options’ segment also excites you then you should also give it a try. I would say why not even though there are chances that you would end up losing it all. But what if I tell you that do not trade just to make profits for the first 3 months at least. Give a maximum of your time to learning and observing our Indian stock markets daily. See how stocks are moving every minute, every hour to get some idea and make it very clear to work on the Equity segment in the beginning as it is less volatile as compared to options trading.
Remember the quote, “Penny saved is a penny earned .”
Like this saving, your capital is the biggest part to survive here. Now I would like to congratulate you all that you have come this far to read my blog and decided to make your fortune and livelihood through trading and looking for Independence and not for slavery for some few bucks or peanuts.
Earn Money via Intraday or Day Trading As a Beginner
Here begins my journey,,,
I was fortunate enough to have enough capital that every beginner dreams for. I had roughly 20 lakhs before that was our family savings and I took it all and entered into INTRADAY TRADING.
I started with some stocks before which I never heard of. Honestly speaking, I made some money as it’s called the Beginners luck off-course. Only to lose it all. I became too greedy that I kept on thinking that stocks are meant to go on an Upwards trajectory only. Daily markets open and click on buy order whenever I feel like the best part is that I knew back then positions needed to be closed before 3:20 PM Indian standard time. otherwise, the broker will automatically square off your position no matter what.
I still remember I started in the year 2021′ second half. Stock buying and selling were going ok for me. Experienced both profits and losses but overall my Portfolio or capital was down by 80% because of over-exposure of margins. Meaning if you have got let’s say 1 lakh and you want to buy stock of TATA POWER then As of now it is currently trading at 207 rupees then you can buy 500 shares of it.
But what if you want to buy more with the same capital. Yes, you can buy and the term is called INTRADAY TRADING where you can buy and sell stocks worth 5 LAKHS i.e., 1000 shares. Although, we can not hold the position for the next day as it is a borrowed trade from your broker and you have to return your extra shares to the broker before the market ends for that day.
How to do Intraday Trade step by step
1) Let’s take the example of Tata power again. It is currently trading at 207 rupees and tomorrow it can fluctuate depending on news and other factors playing around the market.
2) You buy the stock of let’s say 500 shares and hoping them to go up during the market and hurray it to goes up to 210 in 1 hour or so. Now, what to do. You will see in your trading terminal a Profit of 1500 rupees in green( SALE VALUE- BUY VALUE) * NO. OF SHARES. Now sell/exit the trade to get that amount in your trading account. Note that it will take T+1 days means the next day only it will reflect in your trading balance and you can then request for withdrawal of profits.
3) In The same way if Tata power goes down to 203 and you bought it at 207 so now you have incurred losses of 1500.
4) Now in intraday trading we can also do SHORTING. It means if you get some idea that yes this stock can go down from here because of some news or chart patterns. So if your stock goes down then still you can make money in this case if the stock you sell it before for 207 rupees it comes down from your sell value let’s say 203 so you will make 3 rupees profit from the difference and the shares are 500 so you made 1500 rupees profit.
How to be PROFITABLE as a Day TRADER
This topic to become profitable as a intraday trader comes with different phases. I have divided it into some phases of becoming profitable as a Day Trader. Every Phase as important for your successful earning via day trading.
PHASE I :
learning to trade is a difficult task and need patience, try to avoid YouTube in the first phase, read books on trading, trading psychology, and basic finance is important to understand the technical terms used in the field.
In phase-I. do as many mistakes as you can, and make a journal of them which will be the only documented text for your performance analysis.
Firstly become disciplined in life then only it will reflect in your trades.
learn chart reading, how candlestick works, and how different time frames are used for trading.
the main goal is to get exposure and experience so, later in your trading journey you can make your own strategy and work on risk management.
PHASE II :
Now, you will be able to understand things such as technical, and price actions, your mistakes will be clear to you, and you would be able to manage your risk.
you will not become consistently profitable, but able to save your capital to sail through losing trades.
this period will decide whether you will be a trader for life or leave the journey.
Can enter into good trades but not able to exit properly with maximum profit.
Confidence will build up. Mental calmness will be attained while trading.
Having more knowledge about risk-to-reward ratio, risk management, and trading psychology.
PHASE III
You will be a consistently profitable trader.
Trade like a machine without emotions.
where losses are small and profits are more.
More than 10,000 hours are completed while watching the charts (the probability is high to become a profitable trader).
Tips- As I said it’s a skill easy to learn but hard to excel in. In other words, if it takes to become a professional doctor in 7 + years where one needs to go through the process in every one there are ups and downs then why do we expect to earn right from the start. Why are we not ready to give it at least a year to understand technical, charts, and basic understanding of business.
Every beginner should read and try to understand 100 stock charts in a month to get familiar with price actions. The use of proper SL (Stop loss) is a must.
The life of a trader is indeed very exciting, somewhat boring too and it comes with every dedication, time, and patience you have been giving in all those years. Trust me the reward is going to be fruitful.
Please feel free to comment or share your views about this. I will try to keep posting more meaningful content. Thank you for reading
CHEERS!
Tags: Intraday Trading
More: